SBA 504 Loan
Brings together SBA and private-sector funding to provide
fixed rate, long-term financing for the purchase of land,
buildings and long-life capital equipment.

SBA fully guarantees debentures (the 504 portion of a loan project) for 30 to 40% of project costs not to exceed $4 million.  Remaining funds are provided by the borrower (10-20 %) and private capital resources (50 percent) secured by a first lien.

Generally, a business must create or retain one job for every $65,000 of 504 funding.  Interest rates are pegged to an increment above the current market rate for 5- and 10-year U.S. Treasury issues.  Maturities of 10 and 20 years are available.  Fees total approximately three percent of the debenture and are financed in the loan.  Project assets are used as collateral.

Call (918) 585-8332 for information on TEDC's traditional 504 program as well as the new refinancing program available through 2012.