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SUCCESS STORY:
 Three
C Body Shop repairs one of every five
collision-damaged cars in Greater Columbus. Owner
Bob Juniper needed financing to expand his facility
to keep up with the company's growth.
The 504 program requires 10 percent owner cash, 40
percent from CCDC and 50 percent from a lending
institution.
CCDC used the SBA 504 Program to minimze Three C
Body Shop's up-front costs for expansion with
financing that required only 10% injection.
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Program Details:
SBA 504 Loan Program:
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Loan Type:
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Direct loan to for-profit businesses |
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Eligible
Business: |
Retail, commercial, service, manufacturing,
distribution |
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Size
Standards: |
Net Worth below $7 million; annual profits below
$2.5 million |
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Use: |
Land & building, new construction, and/or equipment |
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Maximum: |
40% of project cost, up to $1,500,000 ($2.0
million
for targeted projects) & up to
$4
million for manufacturing businesses |
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Term: |
10 years for equipment
20 years for real estate |
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Rates: |
Competitive fixed rate |
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Equity: |
Typically 10% |
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Job Creation:: |
One job for each $50,000 of 504 financing |
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Bank Loan: |
50% of project cost; fixed or floating rate; minimum
7-year term on equipment and 10-year term on real
estate. |
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Area: |
Anywhere in Ohio |
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Fees: |
$500 application fee
Financed processing fee: 2.65% on 504 loan amount
Closing: $3,000 (average), most can be financed with
the exception of title fees |
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Financing for
Healthy,
Expanding Small Businesses
CCDC's long-term, fixed-rate loans, with their 10
percent down payments, require less cash investment
than traditional bank loans. This lets you preserve
your capital for day-to-day operations and future
investments.
These loans, available to existing, healthy
businesses, can be made in amounts up to $1,500,000
and carry terms to 10 years on equipment and 20
years on real estate. In certain cases, projects may
qualify for loans up to $2,000,000. For certain
manufacturing projects the loan amount can be up to
$4.0 million.
Important Links:
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