loans for
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types of loans
SBA 504
SBA 7(a)
USDA
Conventional, Non-Guaranteed Loan
tools
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Forms
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SBA 504 Loans
The SBA 504 Loan Program is administered through NYBDC’s affiliated company, Empire State Certified Development Corporation (ESCDC). The program is a fixed asset economic development program designed to promote growth and job creation in small and medium-size businesses.
ESCDC is a national leader in loan approvals for this program. This program should be used by businesses with good track records and promising growth opportunities. ESCDC, in partnership with your bank, can provide fixed rate, low down payment financing for building acquisitions, construction and equipment purchases.
Loan Amounts
$1.5 million for standard loans
$2 million for public policy loans*
$4 million for manufacturing loans
*The public policy loan limits relate to businesses that include, but are not limited to, minority-owned, women-owned, veteran-owned, or located in rural or economic development areas.
Eligibility
Net worth of less than $8,500,000 and net profit of less than $3,000,000 (average over the last two years)..
Real Estate Occupancy
For existing buildings, at least 51% must be owner-occupied. No loan proceeds can be used to make specific improvements to the non-owner occupied space. For new construction, only 40% or less may be leased to an unrelated tenant and at least 60% must be owner-occupied.
Interest Rates
The ESCDC second mortgage interest rate is fixed at the time of funding at a rate tied to Treasury securities. The 10-year Treasury rate is the basis for real estate projects and the 5-year Treasury rate is the basis for equipment projects. See current rates >
Job Creation or Retention
Borrower must create or retain one (1) job per $65,000 of ESCDC money lent within two years and one job per $100,000 for manufacturing projects. (Exceptions to job requirements exist).
Loan Structure
Bank and/or NYBDC
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50%
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(1st Mtg. or Lien)
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ESCDC/SBA504
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40%
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(2nd Mtg. or Lien)
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Owner's Equity
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10%
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100%
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ESCDC Advantages
ESCDC’s portion of the mortgage recording tax is waived when no construction or renovation occurs. Soft costs/closing costs may be included in the project financing.
Owner’s Equity Requirement
Typically, only 10% equity is required in the form of cash and/or equity in the existing land/building to be improved. The equity requirement increases to 15% for start-ups (less than two years old) or special-purpose real estate. If both start-up and special-purpose situations exist, 20% equity is required.
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