504 Loan Highlights

 

We Provide Financing For:

       Land & Building Acquisition

       Building Expansion

       Machinery & Equipment

       Building Construction

       Renovation & Modernization

 

Typical Loan Structure: 

      50% = First Mortgage from Private Sector Lender

      40% = Second Mortgage from Utah CDC  (Guaranteed by the Small Business Administration)

      10% = Down Payment from Small Business

 

Maximum Loan Amount:

      Utah CDC Portion = $2,000,000

      Utah CDC Portion for Qualifying Small Manufacturing Facilities = $4,000,000

      Private Lender Portion =  Unlimited

 

Loan Term:   

      10 or 20 Years

 

Rate of Interest:  

     Near Long-Term Treasury Bond Rates

 

Collateral Required:      

    Second Mortgage, or lien on assets purchased with loan proceeds.

 

Advantages:

    Long Term

    Lower Than Market Fixed Interest Rates

    Low Down Payment

 

Eligibility Requirements:

    Business must be a for-profit Corporation (Inc., L.L.C., P.C.), Partnership, or Proprietorship

    Net worth of the business must not exceed $7,000,000

    Average net profit after taxes must not exceed $2,500,000 for the last two years

 

Ineligible Purposes:

    Passive Investment Firms

    Unregulated Media Firms

    Gambling

    Real Estate Investment

    Not-for-Profit Corporations

    Finance Related Firms

    Amusement Parks