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Borrower Benefits
- Low 10% injection to project (additional 5% for special purpose and/or start-up)
- Long, fully amortized repayment (20 years for real estate/ 10 years for M&E)
- Frees up cash flow and preserves cash for working capital needs
- Lock in low, bond market fixed rates for 20 years (10 years for M&E)
- Build for future needs and lease space until needed
- 504/CDC fees are covered in debenture proceeds; no up front commitment fees
Use of Proceeds
- Commercial Real Estate - for purchase, construction or renovation/expansion for owner-users.
- Machinery & Equipment - major M&E purchase (useful life to exceed 10 years); M&E purchase may be combined within the 20 year real estate debenture
Eligibility Requirements
- Operating company Net Income under $2.5 million (2 year average)
- Tangible Net Worth of less than $7.0 million
- Owner-user occupied of at least 51% existing building or 60% of new construction with occupancy of additional 20% within 10 years
- Must meet project eligibility under job creation goal or other public policy goals
- Other requirements mirror SBA 7a program eligibility such as for-profit business
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