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HIDC / 504 Loan Program
Our loan program helps small business acquire, build and expand owner occupied real estate and other fixed assets. By working with local banks and other first mortgage lenders, and using the SBA 504 Loan Program, HIDC provides long-term financing at excellent rates.
SBA 504 Loan Program
The SBA 504 Loan Program works with lenders to provide up to 90% long- term, fixed-rate financing for small-to-medium sized businesses that retain and/or create employment opportunities.
Eligible businesses
A for-profit company generating active (not investment) income with a total net worth of less than $7 million and an average net profit (after taxes) of $2.5 million or less for the past two years.
Use of loan proceeds
ü Purchase of land and/or buildings
ü Machinery & equipment
ü Construction
ü Related costs (architectural, engineering, legal, etc.)
Program benefits
ü As little as 10% down payment
ü Preserves working capital
ü HIDC expertise speeds up the application process
Loan terms and conditions
ü 504 loan amount is limited to the lesser of 40% of the total project cost or up to $1,500,000.
ü If the project qualifies as .a public policy goal, the maximum loan is increased to $2,000,000.
ü For manufacturing concerns, the maximum loan is $4,000,000.
ü Term - 10 or 20 years.
ü Rate - a fixed debenture rate, 100% guaranteed by SBA (debenture sales conducted monthly)
ü Collateral -
- Second mortgage on realty
- A security interest in any machinery or equipment
- Personal guarantees, assignment of leases, and life insurance
Click here for more information on the 504 Loan Program
Click here for a preliminary application for the 504 Loan Program
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