Frequently Asked Questions

• Commercial loans for healthy expanding businesses.
• Fixed rate below market financing.
• Financing for fixed assets: real estate, machinery and equipment.
• Term of 20 years for real estate, 10 years for machinery and equipment.

• Long term below market fixed rate financing.
• Equity requirement of 10% or more for customer.
• Lender can provide 90% financing for customer.
• Lender can participate in larger transactions.
• Lender enjoys first lien, lending 50% of value at market rate and fees.

• For profit businesses.
• Tangible net worth not to exceed $15 million.
• Net profit after taxes not to exceed $5 million during previous 2 years.

• Purchase land, purchase or construct building.
• Modernize, renovate or improve building.
• Purchase machinery and equipment with 10 year useful life.
• Soft costs.
• Total project size $125,000 minimum.
• No maximum total project size.
• Refinancing of debt - Program ends Sept. 27, 2012

• Non-profits.
• Speculative development.
• Lending institutions, insurance companies.
• Gambling concerns and private clubs.

• Working capital.
• Inventory.
• Rolling stock.

Rate: Based on pricing published by NADCO.
Structure: Healthy Expanding Business
50% Lender in 1st Lien
40% 504 in 2nd Lien
10% Equity

• Start-up or Special Purpose Building will require 15% equity.
• Start-up and Special Purpose Building will require 20% equity.

• Minimum 10 year term on real estate, minimum 7 year term on machinery and equipment.
• Market rate and fees.
• Covenants established by lender.
• One time 1/2% fee to SBA on Lender's participation.

• Debenture Fees: 2.17% of 504 loan.
• All of the fees can be financed.

• Personal guarantee by 20% or greater owner.