A new Small Business Administration loan program is now available for California manufacturers to finance long-term fixed assets, including land, buildings and equipment.
The new program, made available through the successful SBA 504 loan program, provides access to below-market financing at a higher level than previously authorized.
Manufacturers can finance properties up to $10 million, twice that available to other types of businesses.
Typically, small businesses are unable to tap into the long-term capital market, but can do so with a SBA 504 loan. A bank or other financial lender provides 50 percent of the total financing package, a certified development company (CDC) arranges debenture financing for 40 percent and the business owner contributes a 10 percent down payment.
“The new SBA-loan levels for manufacturers mean that business owners can now purchase or expand their facilities and generate new jobs with a very low down payment and very attractive financing,” said Kurt Chilcott, president of CDC Small Business Finance, the nation's leading SBA 504 lender.
The SBA 504 loan program is available through CDCs. CDC Small Business Finance, with offices throughout California, is the largest of more than 260 CDCs nationwide. In 2004, CDC Small Business Finance assisted more than 570 California businesses with SBA 504 loans, resulting in over a $1 billion dollars in investment and thousands of new jobs.
For more information about the new SBA 504 loan program, manufacturers in California can contact CDC Small Business Finance at (800) 611-5170 or visit www.cdcloans.com.
The new program, made available through the successful SBA 504 loan program, provides access to below-market financing at a higher level than previously authorized.
Manufacturers can finance properties up to $10 million, twice that available to other types of businesses.
Typically, small businesses are unable to tap into the long-term capital market, but can do so with a SBA 504 loan. A bank or other financial lender provides 50 percent of the total financing package, a certified development company (CDC) arranges debenture financing for 40 percent and the business owner contributes a 10 percent down payment.
“The new SBA-loan levels for manufacturers mean that business owners can now purchase or expand their facilities and generate new jobs with a very low down payment and very attractive financing,” said Kurt Chilcott, president of CDC Small Business Finance, the nation's leading SBA 504 lender.
The SBA 504 loan program is available through CDCs. CDC Small Business Finance, with offices throughout California, is the largest of more than 260 CDCs nationwide. In 2004, CDC Small Business Finance assisted more than 570 California businesses with SBA 504 loans, resulting in over a $1 billion dollars in investment and thousands of new jobs.
For more information about the new SBA 504 loan program, manufacturers in California can contact CDC Small Business Finance at (800) 611-5170 or visit www.cdcloans.com.