Intelligent Financing for the 90s
The 504 Loan is an economic development financing program for small and medium sized businesses that need to invest in space or purchase machinery and equipment to further enhance the growth of their business.
Basic criteria for eligibility:
- History of profitability and reinvestment in the company
- Must create or retain jobs or satisfy other defined economic development objectives
- Owner-occupied financing
- For profit company
- Financing needs must be used for long term fixed assets
- New financing (no refinancing or debt restructuring)
Financing is based upon total project cost and comes from three sources,
__________________________________________________________________ % of Source Lien Amount Rate Term Term Project Real Equip. Cost Estate __________________________________________________________________ 50% Private 1st No Limit Market 10 Yrs + 7 Yrs + (Bank) __________________________________________________________________ 40% 504 2nd $50,000 Fixed 20 Yrs 10 Yrs to $750,000** __________________________________________________________________ 10% Equity __________________________________________________________________ ** The 504 Loan amount can increase to $1 million if the project or business qualifies in one of the following ways: minority owned business; located in a rural area as defined by SBA; manufacturing facility or advancement of technology; company must make changes due to regulatory environmental compliance; financing will assist in expansion of exports; business district revitalization; changes necessitated by Federal cutbacks
Loan Process
Contact Certified Development Company in your area to discuss whether your business and your project meet 504 guidelines. It is responsible for preparing a detailed credit analysis and for preparing the 504 loan package. We work directly with the small business and will assist in finding a first trust lender. Total time is approximately 60 to 90 days.
Where to go for further information
The 504 Loan is available through SBA Certified Development Companies. Certified Development Companies are private, nonprofit corporations whose purpose is to assist small businesses. The Certified Development Company located in the same area as your business will assist you.
The following Certified Development Companies service Virginia, Maryland and the District of Columbia:
VIRGINIA ASSET FINANCING CORP.
(Serves Virginia)
12020 Sunrise Valley Drive, Suite 260
Reston, VA 22091
703-475-0504
CENTRAL VIRGINIA ECONOMIC DEVELOPMENT CO.
(Serves the Counties of Amherst, Appromattox, Bedford, Campbell and the City of Lynchburg, Virginia) P.O. Box 817
Lynchburg, VA 24505-0817
804-845-3493
CRATER DEVELOPMENT CO.
(Serves the Counties of Chesterfield, Dinwiddie, Greensville, Prince George, Surry and Sussex, Virginia)
P.O. Box 18080
Petersburg, VA 23805
804-861-1666
JAMES RIVER CERTIFIED DEVELOPMENT CO.
(Serves the Counties of Chesterfield, Charles City, Goochland, Hanover, Henrico, New Kent and Powhatan, Virginia)
P.O. Box 27025
Richmond, VA 23261
804-788-6966
PORTSMOUTH CERTIFIED DEVELOPMENT CO.
(Serves the City of Portsmouth,Virginia)
P.O. Box 820
Portsmouth, VA 23705
804-393-8804
RAPPAHANNOCK ECONOMIC DEVELOPMENT CO.
(Serves the Counties of Caroline, King George, Stafford and Spotsylvania, Virginia)
P.O. Box 863
Fredericksburg, VA 22404
800-627-2892
URBAN BUSINESS DEVELOPMENT CORP.
(Serves the City of Norfolk, Virginia)
201 Granby Mall, Ste. 1000
Norfolk, VA 23510
804-623-2691
VIRGINIA ECONOMIC DEVELOPMENT CORP.
(Serves the Counties of Albemarle, Fluvanna, Greene, Louisa and Nelson, Virginia)
413 East Market St., Ste. 102
Charlottesville, VA 22901
804-972-1728
MID-ATLANTIC CERTIFIED DEVELOPMENT CO.
(Serves Maryland)
2 Hopkins Plaza, 9th Floor
Baltimore, MD 21201-2911
703-539-2449
PRINCE GEORGES COUNTY FINANCIAL SERVICES CORP.
(Serves Prince Georges County, Maryland)
9200 Basil Court, Ste. 200
Landover, MD 20785
301-386-5600
Kathleen Strawhacker Executive Director, Virginia Asset Financing Corporation (703-476-0504),Vice President for Product Development for the Nat’l Association of Development Cos. (NADCO) (the trade association of certified development companies)
