KoreaDaily Monthly Feature: 504 Technical Assistance Providers

Wednesday, August 14, 2013 / Published in Featured News, General News
KoreaDaily Monthly Feature: 504 Technical Assistance Providers

Q: Where could I get help preparing an SBA 504 loan application package?  

          

A: The U.S. Small Business Administration (SBA) is the federal small business services administration providing assistance to small businesses.  SBA provides financial and technical assistance through help centers such as Small Business Development Center (SBDC) and Women Business Centers (WBC). SBA does not provide financing itself but it guarantees loans made to small businesses by lenders.  SBA sets the guidelines for its loans made by lenders such as commercial lending institutions, community development organizations and micro lenders.  SBA guaranty reduces certain risks for lenders.  
 
The SBA 504 program is one of many SBA guaranteed loan programs.  The SBA 504 program enables the small business owners to preserve their working capital by providing 90% financing for purchase/renovation/new construction of owner occupied buildings and machine & equipment purchase.
 
Empire State Certified Development Corporation (ESCDC) is a non-profit company licensed by the SBA to do 504 loans.  Through the SBA 504 program, typically 90% financing is provided through participation of a bank and a CDC.  The bank would provide 50% and the CDC would provide 40% of total project cost.  While the borrower could obtain help from the bank or CDC loan officers for loan application package preparation, there are local resources available for anyone who is interested in starting and growing the business.       
 
The below are community centers in NYC that are available for public at no cost:
 
•NYC Business Solutions: The center provides business courses, legal assistance, financing assistance, recurring / training employees and other services to help businesses to start, operate and expand in NYC.  The services free of charge and all entrepreneurs are welcome.  Small business owners could get assistance in identifying appropriate lenders for each business’s unique situation.  The lenders may include banks, credit unions, microcredit institutions and other alternative lenders.  The center points out application deficiencies and assists in preparing loan packages.  It also explores credit repair options for small business owners who do not qualify for a loan.  The center is located in 5 boroughs.  You may call 311 and ask for NYC Business solutions or visit www.nyc.gov/nycbusiness for more information or call the center near you to make an appointment.  
 
•New York State Small Business Development Center (SBDC): The center is administered by State University of New York (SUNY) and partners with City University of New York (CUNY) and private institutions such as Pace University and Columbia University in NYC.  SBDC is funded by SBA, the State of New York and host higher education institutions.  The center’s services include business plan development, capital access, accounting, financial planning, loan packaging, procurement, exporting and international trade, disaster recovery and business continuity and energy efficiency.  SBDC has several locations through of 5 boroughs of NYC at Lehman College, NYC Collage of Technology, St. Joseph College, Pace University, Baruch College, Columbia University, LaGuardia Community College, York College and College of Staten Island.  You may visit its website for more information: www.nyssbdc.org  
 
•Women Business Centers (WBC): WBC provides training, counseling, mentoring and other business related assistance to women and other entrepreneurs.  Small business owners are offered number of services in many languages to help them start and grow their businesses.  The centers are located in the Bronx, Brooklyn and Queens and you may visit their website for more information: www.bronxwbc.org, www.bocnet.org, www.ldceny.org, and www.queensny.org
 
There are many resources that are available for small business owners who want to start and grow their businesses.  The services mentioned above are at no cost to the entrepreneurs.
 
Prepared by: Arami Jung, Loan officer, Empire State Certified Development Corporation
 
 

Arami's Article in KoreaDaily

 
 

 

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