South Texas Business Fund

SBA 504 Loan | SBA Microloan | EDA Revolving Loan | Inner-City Loan | Bill Sinkin Microloan

Qualifications

Loan Calculator

Comparative Analysis:
504 vs. 7(a)

Loan Application

Complete 504
Forms Package
PDF file (2.6mb)
All forms are required.

SBA 504 Loan Program
The SBA 504 Loan Program is the first national financing program to recognize contributions of healthy, expanding small- and medium-sized businesses toward U.S. job growth.The financing is specifically designed to meet their needs.

Funds can be used for:

Purchasing land to construct commercial or industrial facilities.
Purchasing, expanding or improving existing facilities.
Eligible soft costs associated with a project.
Purchase equipment with life of 10 years or more.

Financing Method:

A financial institution provides 50% of the total project cost.
The SBA loan provides up to 40% of the total project cost.

Equity Requirement:

Borrower provides 10% cash injection.
Additional injection required for start-up or single use facility

Loan Amount:

Minimum amount is $50,000; maximum is more than $1 million.

Maturity:

10 or 20-year term for SBA 504 loan.

* Interest Rate:

The SBA 504 loan has a fixed interest rate tied to the 10-year treasury note. The current rate for November and December 2008 is 7.745%

Actual interest rates will be based on the current treasury rate at the time of closing.

Collateral:

Second mortgage on land or building.
Liens on machinery, equipment, and lease assignment.
Personal guarantees with other pledged assets, as needed.

Benefits to the Borrower:

Below-market fixed interest rates.
Long-term financing.
Low equity requirement.

Size Standards:

Net worth less than $8.5 million and net income less than $3 million (average for the last 2 years.)

Eligible area:

Entire state of Texas.

South Texas Business Fund is an SBA Accredited Lender

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