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In this episode, we discuss non-bank SBA lenders and why it makes sense to know all of your options before going to your local bank!
A Typical 504 project includes a loan secured with a senior lien from a private sector lender covering typically 50% of the project cost. A loan secured with a junior lien from a CDC (backed by a 100 percent SBA guaranteed debenture) covering 30% to 35% of the project costs for special purposes properties, such as hotels.
A contribution of at least 15% (existing business) to 20% (new business) equity from the small business applicant. The first mortgage lender must also make a 90 day (plus) second mortgage interim loan to allow for CDC/SBA funding. SBA pays off this interim loan at the time of CDC/SBA funding (normally 90 days after escrow closing).
A typical 504 project includes a loan secured with a senior lien from a private sector lender covering typically 50% of the project cost. A loan secured with a junior lien from a CDC (backed by a 100 percent SBA guaranteed debenture) covering 30% to 35% of the project costs for special purposes properties, such as hotels.
A contribution of at least 15% (existing business) to 20% (new business) equity from the small business applicant. The first mortgage lender must also make a 90 day (plus) second mortgage interim loan to allow for CDC/SBA funding.
SBA pays off this interim loan at the time of CDC/SBA funding (normally 90 days after escrow closing).