In Edible-Alpha® Podcast Episode #11, Tera talks with Diane Byler of WBD about SBA 504 Loans. An SBA 504 loan is a special product that can only be offered by a Certified Development Company (CDC) like WBD in partnership with a local lender.
The 504 loan is designed to help small businesses grow and create jobs by financing fixed assets like real estate and equipment. Qualified borrowers receive long terms (20 years for real estate, 10 years for equipment); low, fixed rates and lower down payments (10%). The 504 cannot be used to do working capital but can be used in refinancing other loans under certain circumstances as well as for the “soft costs” associated with the project like appraisal, contingency, attorney fees, engineering, title, bank fees and inspection.
This program is best suited for projects from about $250,000 – $10,000,000. One of the greatest advantages of this 504 program is that it helps get financing deals done that conventional lenders are hesitant to tackle alone. In addition to the favorable terms for the borrower, partnering with WBD also reduces risk for the lender as well.
Interested persons can use the code “Byler 2017” for a year of free access to the Wisconsin Lending Guide, a database of lenders in Wisconsin.