Frequently Asked Question

What can I do with SBA 504 loan as a small business owner?

You can use SBA 504 loan proceeds to acquire land and building, FF&E purchase, leasehold improvement, and ground-up construction. Besides, you can cover soft costs (appraisal & environmental report, title insurance, and interim interest) with the loan.

Definitely! We can help not only with refinancing existing debt but also the additional loans with debt refinancing if you would like to expand your business. For the debt refinancing, more than 85% of the current debt should have been used to acquire fixed assets (land and building with improvements and machinery and equipment).

Can I refinance my current debt with SBA 504 loan?

What documents need to be provided for pre-approval?

We need several initial documents to be pre-approved. At the very first step, we need a completed and signed application and three years of personal and business tax returns. Additional documents will be requested upon reviewing of application and financials.

How long do we need to stay in the building to satisfy owner-occupy requirement?

The Operating Company must occupy the project property during the term of the loan (51% if existing building; more if new construction).

What is the condition of collateral and guarantee?

The project property and the applicant's business asset must be our collateral. We require a personal guarantor for an individual who owns 20% or more of an applicant (Spouse owning less than 20% of an applicant must personally guarantee the loan when the combined ownership of both spouses is 20% or more).

What is the insurance requirement?

Hazard insurance on the Project Property must be obtained prior to closing and must be current. The amount should be full replacement cost and must obtain a mortgagee clause in favor of the SBA and the CDC.

EASTERN AMERICAN CDC
Federally Chartered Certified Economic Development Company

438 Broad Ave

Palisades Park, NJ 07650

T. 201-585-0136   F. 201-608-7991

 

Mon-Fri. 9am - 6pm

Subscribe Form

© 2021 by Eastern American CDC. Proudly created with Wix.com