SBA 504 Debentures

About the Program

1.	CDA sponsors the Certified Business Development Corporation that offers long-term financing through SBA 504 Debentures
2.	Interest rates may be below, and maturities longer, than those offered from other sources
3.	Structure:
	50% of total investment provided by a commercial lender at a fixed or variable rate of interest 40% of total investment provided through the sale of long-term debentures guaranteed by the SBA and funded in the private capital market 10% of total investment provided by company
4.	There is no limit to the portion of the total investment provided by the lender and the company.  The SBA 504 portion of the total investment is limited to $4 million.

Structure:

	50% of total investment provided by a commerical lender at a fixed or variable rate of interest.
	40% of total investment provided through the sale of long-term debentrues guaranteed by the SBA and funded in the private capital market.
	10% of the total investment provided by company
There is no limit to the portion of the total investment provided by the lender and the company.  The SBA 504 portion of the total investment is limited to $4 million.

Eligibility:

1.	Borrower must be a for-profit corporation, partnership, proprietorship, and have:
		Active income
		Been established for at least 3 years
		Net worth less $7.5 million
		After-tax profit of less than $2.5 million
		Minimum occupancy equal to 51% of an existing building or 60%-80% of any new building to be financed.
2.	Ineligible use of proceeds:
		Working capital
		Venture capital
		Debt consolidation
		Refinancing
3.	Ineligible businesses:
		Not-for-profit
		Gaming
		Print media
		Lenders
		Real estate investment
		Private recreational

Terms:

1.	Interest rate generally at Treasury Bonds + 1%
2.	Repayment:  real estate--20 years, equipment--10 years

Borrowers Process:

1.	Contact:
		Edward A. Zelinsky 860.258.7855
2.	Have the following information available:
		Description of the project
		Estimate of project costs
		Description of business and products
		3 years of financial statements

See our CDA Lending Partners

For Additional Information on all CDA Programs Contact CDA by email.

Applications:
SBA-504 Application