Welcome to CEDCO Small Business Finance Corporation
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NEW THIS MONTH
Congress has allocated new funds to the ARRA ("Stimulus") subsidy to pay borrower's share of loan origination and bank participation fees, so borrowers' and banks' fees are subsidized for APPLICANTS THAT OBTAIN SBA APPROVAL BY THE END OF FEBRUARY 2010. Congress may allocate new funds after that, but as things stand this is the deadline.
Both houses of Congress are considering nearly-identical bills which, if passed, will increase the amount we can lend per borrower and extend the conditions under which our loans can refinance. The Administration and members of both parties have voiced support for these measures, and we'll let everyone know as we learn more. If you want to contact your representatives to voice support, the House Bill is number HR 4302, and the Senate Bill is S. 1832. Please contact Sean Avery in our office to learn more-- 303-893-8989 ext. 101.
GREEN YOUR BIZ!
504 LOANS NOW HELP FUND ENERGY EFFICIENCY IMPROVEMENTS!
Small businesses may qualify for larger SBA-504 loans on commercial real estate
up to $4 million under new SBA energy goals.504 financing used to purchase, construct, convert or expand a building need only meet one of these three goals:
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Reduce energy consumption by at least 10%, OR
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Make use of renewable or green building standards, OR
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Generate renewable energy or renewable fuels
Call for details!
800-843-8852
Want to Refinance Existing Real Estate Debt as Part of Your Business Expansion?
The SBA now allows us to refinance up to 50% of your existing mortgage when you borrow new funds to purchase or build a new location for your business, to improve your current building, or to replace, increase or improve qualified equipment*. In order to qualify, the new financing must yield at least a 10% savings over your current financing--contact us today to see if your project qualifies!
*Equipment qualifies for 504 Financing if it has a useful life of ten or more years and is designed for use in one location (that is--you can't drive it around).
IN THE MIDST OF FINANCIAL TURBULENCE, THE SBA 504 LOAN FOR REAL ESTATE AND OTHER LASTING FIXED ASSETS IS STILL FULLY FUNDED THROUGH ITS FEDERALLY GUARANTEED BOND AUCTION, AND IT HAS GREAT RATES.
NOW MAY BE YOUR TIME TO BUY!
We make it easy with the SBA 504 loan
Some 504 Loan basics—
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Buy, build, remodel or expand
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Refinance existing real estate debt when you expand
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Projects may range from $100,000 to $10,000,000
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You may be eligible for up to $4,000,000 in SBA funds
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Interest rate as low as 5.25%, fixed for 20 years (in 2009 our average rate is about 5.5%)
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10 to 20 percent down payments
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Most small businesses are eligible
CEDCO has been Colorado's best source of SBA "504 Loan" real estate financing since the early 1980s--now we can offer the same great financing in parts of New Mexico, Utah and Arizona. Please call Edie (as in Edith, not Edward) at our Four Corners Office for details. Her number is below.
Meanwhile, you don't have to wait for our new website to find guides, applications and other useful information.
You can download our Pre-qualification packet here. Download and complete this packet, call the CEDCO loan officer nearest and we can let you know within one business day if your business is eligible for 504 financing and whether or not we believe your loan is "do-able." This is not a formal loan approval, but it is a very good indicator of your prospect for a loan. Our full application process up to a formal approval of your loan generally takes between five and thirty business days, depending on the complexity of your project and company, and how quickly you can furnish information. See our application or borrowers guide for a complete list of what we need and a description of the loan approval process.
Or better yet, just call us and talk things over. We're an SBA Certified Development Company--which means we are lenders, not just loan-packagers or brokers--specially licensed by the U.S. Small Business Administration to make these loans. We have more than a hundred years combined experience in our staff--we're SBA loan experts so you don't have to be.
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The American Recovery and Reinvestment Act (aka "The Stimulus Bill")
President Obama held a press conference on March 16th to describe how The American Recovery and Reinvestment Act (also known as "The Stimulus Bill") and actions by the U.S. Treasury will benefit America's small businesses. These changes are effective today, and some of the fee waivers are retroactive to February 17th-- please call us for details at (800) 843-8852 or your local CEDCO office listed below.
Here's what you need to know--
Loan fees for borrowers and lenders are eliminated, as long as the program fund lasts. (This will save borrowers about $3,500 per $100,000 of SBA 504 funds).
Up to $15 billion have been allocated to increase lending by re-starting the secondary market for 504 first mortgages. This secondary market is the source many banks turn to for new capital, and which was undermined by the finance crisis. These funds should help re-start lending.
$730 million have been allocated for programs.
If you are a borrower, this may be the most favorable financing ever made available to buy or improve owner-occupied real estate and long-lasting equipment! Call us for details.
If you are a bank or other lender, with the re-start of the secondary market and the elimination of lender fees, now may be the time to capitalize on your bank's lending capacity to gain fee income (if you're a secondary market user), to safely expand your portfolio or to extend your lending limits with 50% LTV. With this enhanced lending capacity, you can increase your deposit base, establish new customer relationships and position your bank to benefit as the economy recovers. In fact, you'll be helping the economy get there.
CEDCO has financed Colorado's small businesses for more than thirty years. Because of our long experience and expert, veteran staff, we have a favored relationship with the SBA that gets stream-lined processing on all new loan applications and any servicing request for existing borrowers. Our goal on every project we finance is to get it done right, to provide our borrowers with the best financing structure; our lending partners with the greatest assurance of closing and funding; and both borrowers and lenders with fast, professional and friendly service.
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SBA has raised a component of the fees that borrowers pay monthly along with loan interest and principle. This will apply only to loans approved after October 1, 2009. The rate is called the "annual fee", and it was not part of the fees that were waived by the American Recovery and Reinvestment Act. The fee is based on an annual review of national economic factors, including overall loan defaults and the unemployment rate. This rate has been at zero for several years, but because of recent dramatic rises in these econometric factors, it has now been raised to 0.389% (or, 38.9 basis points). The rate will not be added to loans that were approved before October 1, 2009 that have not yet funded. THE RATE POSTED ABOVE DOES NOT INCLUDE THIS RATE: If your loan was approved before October 1, 2009 and is set to fund this month, your rate at term will be 4.861% including fees.
Prequalification Packet (abbreviated application)
Other forms, including--
Personal Financial Statement (SBA form)
Contact Us!
New Loans--
- Front Range, Eastern Plains and Mountains (303) 893-8989
- Sean sean@cedco.org
- Mary Jane mary@cedco.org
- Western Colorado (970) 243-1861
- Pat pat@cedco.org
- Four Corners including New Mexico (970) 264-0496
- Edie edie@cedco.org
Existing Loans Servicing--
- Kay at (303) 893-8989 ext. 107 kay@cedco.org
Loan Closings--
- Karen at (303) 893-8989 ext. 103 karen@cedco.org
- Donna at (303) 893-8989 ext. 106 donna@cedco.org
Executive & Administrative--
- Bill at (303) 893-8989 ext. 102 bill@cedco.org