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SBA 504 Loan Program Information
ADA provides financial and technical assistance to small, minority and female-owned businesses to expand and/or relocate in the city. The SBA-504 Loan Program offers businesses a unique source for 90% financing. Loans are available through certified development companies certified under the U.S. Small Business Administration 504 Certified Development Corporation Program.
Eligible Projects:
- Owners must occupy at least 51% of space.
- Acquisition of fixed assets (i.e. land and buildings)
- New construction (67% occupancy)
- Renovation
- Machinery and equipment
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Ineligible Projects:
- Working capital
- Refinancing
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Amount: Loans up to $1.5 million or 40% of total project costs (up to $2 million if the company meets a public policy goal). 504 loans for “small manufacturers” may be made up to $4 million.
Typical Transaction:
| Source of funds |
Amount |
Collateral |
| Bank |
50% |
1st mortgage |
| CDC |
40% |
2nd mortgage |
| Equity |
10% |
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Term of Loan: Ten (10) or Twenty (20) years real estate or a combination of real estate and machinery/equipment.
Interest Rate: Fixed for term of loan, based on 10-year Treasury Note, priced monthly. Loans funded through private sale of debentures.
Assumability: The SBA-504 portion is assumable.
Eligible Borrowers: Most for-profit businesses with less than $6 million in net worth; less than $2 million after tax profits, or less than 500 employees.
Fees: Processing and servicing fees are paid out of debenture proceeds.
Prepayment: 10% penalty the 1st year, decreasing by 1% to the 10th year.
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click here to download the application
There will be a $50 loan application fee that is
non-refundable. |
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
SBA loans and loan guarantees are available to businesses which cannot borrow on reasonable terms from conventional lenders. Two major programs exist: the 7(a) or regular loan guarantee program and the 504 or Certified Development Company program. Currently, the limit of SBA assistance to any one borrower participating in the 7(a) program is $75,000. The loan limit on the 504 program can go up to $1.3million. Total project costs can be much higher with private and other public sources providing additional financing.
Business Eligibility
- Eligible businesses include for-profit businesses only.
- Ineligible businesses include:
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- Non-profit organizations
- Passive income and real estate companies
- Developer/landlord deals
- Financial institutions
- Religious institutions
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Business Size Standards
- Manufacturing businesses cannot employ more than 500 people, unless otherwise specified in the Standard Industrial Classification (SIC) code.
- Retail and service businesses cannot have more than $5 million in sales, unless otherwise specified in the SIC code.
- Wholesale business cannot employ more than 100 people unless otherwise specified in the SIC code.
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Type of Financing
Borrower must be the use of the loan proceeds.
Loan Amount
Up to $750,000 total SBA exposure per small business concern. SBA can guarantee up to 85% of loans for $150,000 or less and up to 75% of loans for more than $150,000, up to a maximum of $750,000. The percentage SBA guarantees depends on the project.
Use of Loan Proceeds
- Land and Building Acquisition
- Inventory
- Machinery and Equipment
- Working Capital
- Renovation of Building
- Accounts Receivable
- Leasehold Improvement
- Refinancing of Current and Secured Debt
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Repayment Term
The bank sets the loan term from 1 to 25 years depending on the purpose, use of proceeds, ability to repay, and the useful life of the assets being purchased.
|
click here to download the application
There will be a $50 loan application fee that is
non-refundable. |
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
Quick SBA Turnaround
Easy one page SBA application:
- LowDoc simplifies the application process.
- LowDoc provides a rapid response from SBA – usually only two or three days.
- LowDoc focuses on character, credit and experience.
- LowDoc is for small business loans of $150,000 or less. SBA guarantees up to 85% of the loan.
- The applicant completes the front of a one-page SBA application; the lender completes the back. Lenders may require additional information from the applicant.
- For loans over $50,000 the applicant includes a copy of U.S. Income Tax Schedule C or the front page of the corporate or partnership returns for the past three years.
- Personal financial statements are required for all guarantors.
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Who is eligible:
- Entrepreneurs starting or expanding a business
- Businesses whose average annual sales for the preceding three years do not exceed $5 million and employ 100 or less, including affiliates.
- Businesses that satisfy other statutory criteria
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Maturity
- Length of time for repayment depends on – The ability to repay and – The use of the loan proceeds; however – It may not exceed 25 years for fixed assets or 10 years for all other uses.
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Interest Rate:
- Applicants negotiate terms with lender
- Interest rate tied to the Prime rate
- Loans of less than seven year; 2.25% over Prime
- Loans of seven years and longer; 2.75% over Prime
- Loans under $50,000 are subject to slightly higher rates
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Collateral:
- All loans are to be adequately secured
- No unsecured loans
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For additional information contact the SBA at:
(404) 331-0100, ext. 603.
|
click here to download the application
There will be a $50 loan application fee that is
non-refundable. |
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
The SBA Express
- Makes it easier and faster for selected PLP and non-PLP lenders to provide small business loans of $250,000 or less.
- Allows lenders to use their own forms and procedures to approve, service and liquidate loans of up to $150,000.
- The SBA guarantees up to 50% of each loan to the bank, therefore encouraging lenders to make small business loans.
- SBA Express lenders can also offer revolving lines of credit to borrowers.
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Who’s Eligible
- Entrepreneurs starting, growing or building a business.
- Businesses whose average annual sales for the preceding twelve months do not exceed SBA’s size standards for specific standard industrial classifications (SIC) codes.
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Interest Rates
- Applicants negotiate terms with the lender
- Interest rates are tied to the Prime rate and may be fixed or variable.
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Maturity
- May not exceed 25 years for fixed assets or generally 5 to 10 years for all other uses.
- All loans are to be adequately secured.
- Normally business assets are pledged and occasionally personal assets.
- SBA Express lenders may approve unsecured line of credit up to $25,000.
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The following banks are authorized to make SBA Express loans:
Bank of America
3350 Riverwood Parkway, 11th Floor
Atlanta, GA 30339
Contact: Vickie Molinari
770 850-5547
Fax: 770 850-5543
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Bank of the West
3350 Riverwood Parkway, Suite 1900
Atlanta, GA 30339
Contact: John A. Jones
404 237-3140
Fax: 404 237-3141 |
Branch Banking & Trust Co
11650 Alpharetta Highway
Roswell, GA 30376
Contact: Katrina Winberg
678 762-5247
Fax: 678 762-5237
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California Bank & Trust
2399 Gateway Oaks Drive, Suite 110
Sacramento, GA 95833
916 561-1121
Fax: 916 561-1112 |
Columbus Bank & Trust
c/o Synovus SBA Lending
P.O. Box 168
Monroe, GA 30655
Contact: Kim Hartbarger
770 267-4131
Fax: 770 267-4564
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Comerica Bank
P.O. Box 4167
Houston, TX 77210
Contact: Chris Silverman
713 888-2694
Fax: 713 993-0498 |
Foster Bank
5715 Buford Highway, Suite 205
Doraville, GA 30340
Contact: Steve Han
770 451-1220
Fax: 770 451-7725
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United Community Bank
f/k/a Independent Bank & Trust
100 Polk Street
Marietta, GA 30064
Contact: M. Gregson Griggs
770 426-0996
Fax: 770 428-5657
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U.S. Bank
2839 Paces Ferry Road, Suite 1210
Atlanta, GA 30339
Contact: Shay Brakley
770 434-6660
Fax: 770 434-0266
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Wachovia Bank
101 North Cherry Street
MC NC39072
Winston Salem, NC 27150
336 735-6193
Fax: 336 735-6181 |
Washington Mutual Bank, FA
1901 Cooper Landing Drive
Smyrna, GA 30080
Contact: Jim Blading
770 384-0803
Fax: 770 384-0869 |
Wells Fargo SBA Lending
1455 West Lake Street, Suite 306
Minneapolis, MN 55408
Contact: Tom Burke
612 667-2753
Fax: 612 316-2322
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For additional information contact the SBA at: (404) 331-0100, ext. 603.
|
click here to download the application
There will be a $50 loan application fee that is
non-refundable. |
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
The 8(a) Program promotes equal access for certified companies, owned by socially and economically disadvantaged individuals, to participate in the business sector of the nation’s economy. These individuals may include Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and subcontinent Asian Americans. Individuals not members of these minority groups, who can demonstrate they are socially and economically disadvantaged, may also be eligible for the program.
SBA may provide 8(a) firms with contracting, marketing, financial, management or other technical assistance. Some of the resources available include counseling, SBA financial assistance through agency guaranteed loans, management training, and surety bond guarantees.
The SBA, as part of the program, may enter into prime contracts with other federal agencies and department to provide goods and services, and subcontract the actual performance on the contracts to approved 8(a) firms. The agency will also offer marketing tools to 8(a) firms to help them become more self-sufficient and successfully complete in the private-sector market. The SBA assigns a Business Opportunity Specialist (BOS) t o each certified firm in the program to help it fulfill its business goals.
SBA cannot guarantee any specific amount of government business for each 8(a) firm. However, SBA officials do maintain data on government requirement trends to anticipate the nature and volume of business opportunities.
The 8(a) program conducts monthly workshops for prospective participants. A company, once approved, can be an 8(a) program participant for nine years, with the transitional state made up of the last five years of participation.
For additional information contact the SBA at: (404) 331-0100, ext. 504.
|
click here to download the application
There will be a $50 loan application fee that is
non-refundable. |
Please return all completed applications to:
Cathy Brackett
Administrative Assistant
cbrackett@atlantada.com
Phone: 404-880-4100
Fax: 404-880-9333
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