Ocean State Business

Development Authority, Inc.

SBA 504 Loan

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Features and Benefits of SBA 504 Loan

• The SBA 504 program from Ocean State Business Development Authority is a tool available for a healthy growing business.

• Most of the time you need only 10%* down.

• A 504 loan can provide up to 90% financing for fixed-asset acquisition: land, buildings, leasehold improvements, machinery and equipment. The funds are available for established businesses which demonstrate historic ability to service the proposed debt.

• Second lien position with low loan-to-value reduces the senior lender’s collateral risk.

• OSBDA’s loan at 30 to 40%* of business’ project costs allows banks to preserve available funds for the business’ future working capital/growth needs.

• The borrower can access below-market, long term fixed rate funds, which enhances cash flow.

• Finance your soft costs including accountant fees, title, insurance, ect.

• The OSBDA loan term is 20 years for land and building and 10 years for equipment.

• Twenty-year term on the SBA portion avoids balloon payments, renegotiation of the loan and possibly higher payment.

• OSBDA’s experienced staff prepares all SBA forms, completes the packaging, closes and services the loan. Our goal is to provide quality and timely loan processing.

*Please note: Additional equity may be required for start-up businesses (+5%) and/or for single purpose buildings or structures (+5 %). In any instance, equity will never exceed 20% of total project cost

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