Acquisition And Development Financing

Acquisition and development financing involving a SBA "Certified Development Company" (CDC) provides you with long-term, fixed-rate financing for major fixed assets (land, buildings, etc.).

This program contributes to community economic development. The CDC works with commercial lenders to provide financing to businesses.

This program includes a loan from a commercial lender that covers 50% percent of the project and a second loan for up to 40% of the project cost from the CDC that is 100% SBA guaranteed for a combined 90% LTV.

Funding from this program can be used for:

Purchasing land and improvements, including existing buildings
Grading, street improvements
Utilities, parking lots and landscaping
Construction of new facilities
Modernizing, renovating or converting existing facilities
Purchasing long-term machinery and equipment

The loan program cannot be used for: Working capital or inventory, consolidating or repaying debt, or refinancing.

SBA Commercial Loan

SBA Commercial Loan - Growing your business!

SBA commercial loan funding is just what the Small Business Adminstration is about. So, if you are thinking about borrowing money (debt financing) from a bank, but are unable to . . . then consider obtaining financing from the Small Business Administration (SBA).

What does that mean? This federal agency loans no money itself, but instead guarantees 75 percent of individual loans made by private lenders, up to $750,000 (making the maximum loan amount $1 million).

How does this happen? When you go to a bank to ask for a loan, they need sufficient collateral from you or your request will be rejected.

What is the criteria? All business owners (or sharholders) that have twenty percent (20%) or more ownership are required to personally guarantee SBA loans.

The SBA also considers your good character, management capability, and owner's equity contribution.