CEDCO Small Business Finance inline
What Is The SBA 504 Loan?
The SBA 504 Loan program is designed to provide small businesses with access to affordable, long-term financing for the purchase or improvement of fixed assets. The program is administered by Certified Development Companies (CDCs), which are non-profit organizations that work with the SBA and private sector lenders to provide financing to small businesses.
Fixed Assets
Fixed assets are long-term physical assets that a business owns and uses to produce income. These assets are not intended for resale and are expected to have a useful life of more than one year.
Examples Of Fixed Assets
Examples of fixed assets include real estate, buildings, machinery, equipment, furniture and fixtures, computer equipment, intellectual property, artwork, and vehicles just to name a few.
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REAL ESTATE

CONTINUING EDUCATION

Welcome! CEDCO is proud to announce a Realtor Continuing Education Event! Learn about the SBA 504 Loan, and the opportunity to help businesses own more.

In this ever-changing market, there is opportunity to help many business owners and companies take full advantage of SBA loans.

These continuing education courses can cover a range of topics. Get an edge in your local market, and make sure you understand how a business owner can fund business improvements, own their space, or more through government funding.

This continuing education is for real estate agents, commercial lenders, and Realtors. 

SBA 504 Loan Plan

CEDCO offers professional and reliable services in guiding you through the 504 loan process, from origination to servicing. In partnership with the Small Business Administration (SBA), we provide below market rates, long-term financing and a low down payment on office, commercial and industrial assets located in Colorado.

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Pie Chart 504 loan

Normally, we lend 30-40% of the total project costs, with a bank providing 50% and you, the borrower, providing a 10-20% down payment. Our portion of lending on past projects has ranged from $25,000 to $5,500,000. Real estate loans are funded every month and are for a term of twenty years. Long lasting fixed equipment loans are funded in odd numbered months only and are for a term of ten years.

Step You Will Get The Loan

Fast & Easy Process

01.

Choose Your Amount

Provide a brief description of your business and an estimate of the project costs needing financing

02.

Provide Your Documents

  1. Current financial statement of the business
  2. 3 years' tax returns of the business or projection of future revenue and expenses for start up companies
  3. Current personal financial statement of owners
  4. Latest personal tax return of each owner

03.

Review And Apply For Loan

Review that all requirements  from the previous steps are met and submit paper work

04.

Approve Bank Loan

We will approve your offer promptly so you can move quickly to get done what you need 

Estimate Your Loan

Loan Calculator

This calculator is designed to help you estimate cost and is not intended to be used as a quote.

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Questions To Ask

If you’re considering applying for an SBA loan, it’s important to do your research and carefully evaluate whether this financing option is the best fit for your business. Here are some questions you should consider asking before getting an SBA loan

  • Do I meet the eligibility requirements for an SBA loan?

    In order to qualify for an SBA loan you must meet certain criteria, like… being a for-profit business and having a net worth of less than $15 million and an average net income of less than $5 million over the past two years.

  • What is the purpose of the loan?

    There are a few different SBA loan programs, our consultants are experts at each type of loan and can assist you in selecting the one that will work best for your business.

  • What are the terms of the loan?

    Consider the interest rate, repayment period, and any fees or closing costs associated with the loan. We highly encourage you to shop around because we know our rates are very competitive. 

  • Can I afford the loan payments?

    Carefully review your budget to ensure that you will be able to make the loan payments on time and in full.

  • Do I have collateral to secure the loan?

    Some SBA loans require collateral, such as real estate or equipment, to secure the loan. Make sure you have the necessary collateral to qualify for the loan.

What are the application requirements?

Gather all the necessary documentation, such as:

– Current financial statement of the business
– 3 years’ tax returns of the business or projection of future revenue and expenses for start up companies
– Current personal financial statement of owners
– Latest personal tax return of each owner

before applying for an SBA loan.

  • What other financing options are available?

    Consider other financing options, such as traditional bank loans, venture capital, or crowdfunding, to determine which option is the best fit for your business.

  • Who Is Eligible For An SBA 504 Loan?

    • Owner occupied properties (51%)
    • New construction or existing
    • SBA Loan amount up to $5,500,000
    • Net Worth up to $15,000,000
    • Profits after tax under $5,000,000
    • Demonstrated repayment ability