WIDC - Frontier CDC

SBA 504 LOAN PROGRAM

WHAT DO YOU WANT TO FINANCE?

Buy land and build a building. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Build on leased ground with lease being longer than 20 years . . . . . . . . . . . . . .
Renovate/expand building already own . . . . . . . . . . . . . . . . . . . . . . .
Purchase building currently occupying . . . . . . . . . . . . . . . . . . . . . . . .
Purchase machinery & equipment with 10 years useful life . . . . . . . . . . . . . . .
Purchase machinery & equipment with less than 10 years useful life . . . . . . . . . .
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidate debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructure debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refinance debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes
Yes
Yes
Yes
Yes
No
Maybe
No
No
No
No
No
Limited

BUSINESSES THAT FIT

Start-up Businesses:
      Franchise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
      Not a franchise, management experience AND sufficient cash . . . . . . . . . . .
      Not a franchise, no management experience, no cash . . . . . . . . . . . . . . .
For-profit business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-profit business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Radio/TV/Newspaper/Publishing companies . . . . . . . . . . . . . . . . . . . . .
Gambling establishments   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lending investment companies. . . . . . . . . . . . . . . . . . . . . . . . . . .
Academic schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade/Technical/Preschools/Nursery schools . . . . . . . . . . . . . . . . . . . .
Investor financing . . . . . . . . . . . .   . . . . . . . . . . . . . . . . . . . .

Yes
Maybe
No
Yes
No
Yes
No
No
No
Yes
No

ADDITIONAL CONSIDERATIONS

In business at least 2 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
History of increasing sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
History of profitability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
History of re-investing profits. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less than $3,000,000 profit, after taxes . . . . . . . . . . . . . . . . . . . . . . .
Less than $8,500,000 tangible net worth. . . . . . . . . . . . . . . . . . . . . . .
Negative net worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Will create jobs as a result of expansion . . . . . . . . . . . . . . . . . . . . . . .
Will not create jobs as a result of expansion . . . . . . . . . . . . . . . . . . . . .
Business will occupy 100% of building . . . . . . . . . . . . . . . . . . . . . . . .
Business will buy existing building, occupy at least 51% or more. . . . . . . . . . . . .
New construction - business wants to sublease part of the space . . . . . . . . . . .

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Maybe

SBA 504 Tips

The down payment/equity injection on SBA 504's could be as low as 10%, preserving needed cash for working capital.
Interim financing costs including points, fees, and construction interest maybe included in SBA 504 loan.
Appraisals, architect costs, engineering, environmental, and your construction title insurance maybe included in SBA 504 loan.
Impact and permit fees; as well as utility hook-up fees are eligible costs in a SBA 504 loan.
Equipment and machinery can be financed with a SBA 504 loan.
Site improvement costs can be included in a SBA 504 loan.
Banks can have as low as 50% Loan to Value Ratio with a SBA 504 loan.
Contracts for Deed are eligible for new financing under a SBA 504 loan.
Land acquired prior to application for a SBA 504 Loan can be part of the required equity injection, if the land has been acquired within the last 3 years.
Change of ownership and purchase of a company is eligible for an SBA 504 loan.
For profit golf courses are eligible for SBA 504 financing.
A building on leased land can be financed by a SBA 504 loan as long as the lease is longer than the maturity date of the SBA 504 loan.
If there is pre-existing debt already secured by Project Property, the debt may be wrapped in bank's first mortgage as a non-project cost along as there is adequate DSC and LTV.
Refinancing of existing debt, not to exceed 50% of the cost of the project, can be done with a SBA 504 loan if the business is expanding, acquiring land, expanding their building, or purchasing equipment.

FRONTIER CERTIFIED DEVELOPMENT COMPANY
CASPER, WYOMNG
307-234-5351 - PHONE