SBA 504 Loan Details
Loan Purpose: Owner occupied commercial real estate purchase, including equipment or other fixed assets (no working capital).
Loan Amount: $1,000,000 to $8,000,000 (first lien only) total transaction size from $2,000,000 to $16,000,000).
Equity Requirement: Contingent upon type of loan
- 10% down for general purpose real estate acquisition & new construction
- 15% down for startups or special use real estate
- 20% down for special purpose in conjunction with a startup
Working Capital: Is not an eligible use of proceeds
Interest Rate: Competitive Risk Based Pricing: CSB First Lien competitive rate. SBA 504 debenture second mortgage is a 20-25 year fixed rate that is historically below market rates.
Term: Up to 25 years with no balloons or calls—fully amortizing over the life of the loan. CSB has a loan term up to 25 years. SBA 504 debenture second mortgage has a loan term up to 25 years.
Prepayment Penalty: Prepayment penalties will apply.
Collateral: First lien and second lien on all assets being financed.
Personal Guarantees: For all individuals owning 20% or more. Corporate guarantees of affiliated companies may be required.
Industries: All for-profit businesses that meet SBA eligibility requirement.
Timing: We can work at your pace of providing the necessary information. Term Sheets in 24/48 Hours. Loan approval in 5-10 days. Loan closings are generally 45-60 days from submission. However, loans are subject to CDC/SBA approval.