US SBA 504 Loan Program
OOC is authorized to finance projects using the SBA 504 loan program which is designed to promote economic development growth and job creation in small businesses. The program can make the overall financing structure for a new business or project more attractive and affordable.
The program offers accessible, fixed rate, long term financing for land, buildings and equipment. Businesses eligible for SBA 504 loans are independently-owned, for-profit businesses that are ready to expand and create jobs. They must have a net worth less than $15 million and an average net income less than $5 million for the two years prior to SBA 504 application. An SBA Certified Development Company (CDC), such as OOC, finances 40 percent of the project with an SBA 504 loan, a bank lends 50 percent and the small business provides ten percent equity.
Funding Source Breakdown
Some of the key points to know about the SBA 504 loan program are:
Link to US SBA website
Download brochure: U.S. Small Business Administration (SBA) 504 Loan Program
Important Information About Identification
To help the U.S. government fight the funding of terrorism and money laundering activities, federal law requires all Certified Development Companies to obtain, verify and record information that identifies each person who applies for an SBA 504 loan.
This means, when you apply for an SBA 504 loan, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.