Capital Regional Development Council- CRDC

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Overview

SBA 504 loans are CRDC’s most popular offering and provide healthy, expanding businesses with long-term fixed asset financing. SBA 504 loans are competitively priced with a fixed interest rate for the life of the loan and a low down payment. Since 1990, we have issued 167 SBA-guaranteed debentures totaling $50,000,000, which created over 2,700 job opportunities and private investments of $150,000,000.

CRDC is an SBA Certified Development Company (CDC) for the State of New Hampshire and one of the most active CDCs in New England. Our job is to market, process, originate, close and service SBA 504 loans to eligible small businesses for assets such as land, buildings, machinery and equipment. We have a professional staff that will work directly with you to develop a financing package that meets your needs as well as the 504 program guidelines and credit criteria. We make it our business to work side-by-side with your banker and provide you with an easy and user-friendly application process.

Benefits

The main program benefits of an SBA 504 loan are:

Low down payments: typically 10% of the purchase price;
Below-market, fixed interest rates (click here for current rates); and
Long-term financing: up to 20 years.

Eligible Borrowers

Borrowers eligible for this loan include most for-profit businesses except those engaged primarily in lending, speculative investments, education, lobbying, or gambling.

Project Costs	Source	Lien	Funding Limits	Rate	Term Real Estate	Term Equipment
50%	Bank	1st	No Limits	Market	10 yrs or longer	7 yrs or longer
40%	504	2nd	$1,500,000 - $4,000,000	Fixed	20 yrs	10 yrs
10%	Borrower's equity can include cash, subordinated debt, or existing equity in project real estate. New businesses (less than two years old) and special use buildings have an additional 5% equity injection requirement.

Eligible Uses of Proceeds

Borrowers can use loan proceeds to purchase, construct, or improve fixed assets with a useful economic life of at least 10 years, including real estate (land and buildings) as well as machinery and equipment. Other associated eligible project costs include professional fees (architectural, engineering, accounting), appraisals, environmental site assessments, interest on interim financing, and construction contingencies.

Loan Application Process
click here for application forms

A CRDC Loan Officer is available to meet with you, answer any of your 504 questions, and assist you in completing the 504 loan application. Upon receipt of a complete 504 loan application, a credit decision is generally issued within two weeks.

CRDC's 504 Loan Portfolio

CRDC has provided 504 loans to a variety of customers including manufacturing firms, hotels/motels, professional associations (lawyers, physicians, accountants, engineers, architects), elderly care facilities, retail stores, automobile dealerships, restaurants, day care centers and others. Click here to meet some of our satisfied customers.

Fees

CRDC is required by the SBA to charge certain fees, generally about 2.67% of the amount financed with an SBA 504 loans. We pride ourselves in keeping these fees as low as possible for our customers and they can all be financed with loan proceeds. For a fee estimate on your proposed loan, contact us today.

After a Loan is Closed

Once a 504 loan is closed, a debenture (bond) is issued by CRDC and sold in the private bond market to fund the 504 portion of the financing package. These bonds are fully guaranteed by the U.S. Small Business Administration. In fiscal year 2004 the 504 debenture pools sold in the public securities markets totaled over $3.1 Billion.