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3rd Quarter FY 2013 - Third Party Lender Loans
The SBA 504 loan program provides long-term financing for the acquisition and/or renovation of capital assets including land, building and equipment. These loans are provided through Certified Development Companies (CDCs) working with lenders who make loans for approximately 50% of the project costs and retain a first lien on the collateral securing the loan. The CDC makes a loan for up to 40 percent of the project costs secured by a junior lien with the borrower providing 10% of the project costs. Borrower may be required to make injections beyond the 10% threshold of additional 5% amounts if the business is less than 2 years old and for single purpose buildings. The CDC loan is backed by a 100 percent SBA guaranteed debenture. For the third quarter of fiscal year 2013 (April 1 – June 30, 2013), Certified Development Companies (CDCs) provided nearly $18.4 million in SBA's 504 loan program funding which supported 26 third-party lender loans totaling nearly $23.7 million to 25 eastern Missouri-based businesses. For the first three quarters of fiscal year 2013 (October 1 – June 30, 2013), Certified Development Companies (CDCs) provided nearly $51.4 million in SBA's 504 loan program funding which supported 68 third-party lender loans totaling $39.5 million to 65 eastern Missouri-based businesses.