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Regional
Loan Corporation
330 Camp Street
New Orleans, LA 70130
Tel: (504)524-6172
Fax: (504) 524-0002
SBA
504
Interest Rate
6.59%
20 years fixed
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SBA 504
SBA 504 (Small Business Administration)
allows for the following loan purposes:
- Land acquisition and improvements
- Purchase and/or renovate existing buildings
- New construction
- Equipment, furniture and fixtures
- Equipment relocation
- Project professional fees
- Interest and ‘Points’ on interim loan
Typical Financing Structure for the Above Loans:
- Bank - 50%
- SBA - 40%
- Borrower Injection - 10%. For a new business, Borrower
Injection increases to 15%. Contact the RLC if other specifics
are involved.
SBA 504 Loan Advantages:
- FIXED rate for term of loan - normally below bank rates
, no interest rate risk on SBA portion of debt
- 20-year term on real estate
- 10-year term on equipment
- Preservation of capital due to low equity injection
requirements
- Most project fees (closing costs, appraisal and environmental
fees, architect fees) can be financed
- SBA Loan amounts up to $1.5 million to $4.0 million
for manufacturers
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Eligibility
Criteria:
- Business organized for profit
- Combined tangible net worth of business and affiliates
below $7 million
- Combined net profits after taxes average less
than $2.5 million for previous two years
- Useful life of fixed assets must be a minimum
of 10 years
- Project must demonstrate job creation or retention
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