SBA 504 Loan Program

Cascade Capital Funding is here to help you get your customers the affordable financing they need to grow while helping preserve their working capital.  Using an SBA 504 loan in conjunction with a loan from your financial institution your clients can purchase or construct a new building or purchase long-life machinery & equipment.

Eligibility

  • Operate as a for profit company
  • Do business (or propose to) in the United States
  • Has a tangible net worth less than $15 million & average annual net income of less than $5 million after taxes for the preceding two years
  • Loans cannot be made to businesses engaged in speculation or investment in rental real estate
  • Be an eligible type of business
  • Use proceeds for financing fixed assets such as real estate or equipment
  • Not have funds available from other sources
  • Ability to repay the loan on time from the projected operating cash flow
  • Good Character a “Statement of Personal History” is required from each principal
  • Relevant management expertise
  • Feasible business plan

Borrower Advantages

  • Low down payment- 10% for existing businesses up to 20% for start-ups
  • 10 year fixed rate on long-life machinery and equipment
  • 20 year fixed rate on real estate purchase or general building construction (existing business must occupy 51% of project property/ for new construction they must occupy 60%)
  • Project costs such as appraisals, loan fees & closing costs can be financed
  • Low down payments & fixed monthly payments allow your customer to preserve working capital.

504 Bank Advantages

  • No additional paperwork for the bank- We package the 504 side of the project
  • The SBA 504 loan is in second lien position to the bank
  • By using the 504 program smaller banks can limit their exposure to certain industries
  • The bank can look at larger projects, help more borrowers and mitigate the bank’s exposure in the event of default