4th 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 fourth quarter of fiscal year 2013 (July 1 – September 30, 2013), Certified Development Companies (CDCs) provided nearly $7.8 million in SBA's 504 loan program funding which supported 16 third-party lender loans totaling nearly $10.2 million to 16 eastern Missouri-based businesses.
For fiscal year 2013 (October 1 – September 30, 2013), Certified Development Companies (CDCs) provided nearly $47.3 million in SBA's 504 loan program funding which supported 84 third-party lender loans totaling $61.5 million to 81 eastern Missouri-based businesses.