504 Loan Application Denver Urban Economic Development Form

Understanding the 504 Loan Application for Denver Urban Economic Development

The 504 Loan Application is a crucial document designed to facilitate financing for small businesses in Denver, particularly through the Urban Economic Development program. This program aims to promote economic growth by providing long-term, fixed-rate financing for major fixed assets, such as real estate and equipment. The loans are typically structured to cover up to 40% of the total project cost, making them an attractive option for businesses looking to expand or improve their operations.

Steps to Complete the 504 Loan Application

Completing the 504 Loan Application involves several key steps:

• Gather necessary documentation, including financial statements, business plans, and tax returns.
• Complete the application form accurately, ensuring all information is current and truthful.
• Submit the application to an approved lender, who will review it for completeness and compliance.
• Work with the lender to address any questions or additional information requests.
• Receive approval and finalize the loan agreement, followed by the disbursement of funds.

Required Documents for the 504 Loan Application

When preparing to submit the 504 Loan Application, it is essential to compile the following documents:

• Personal financial statements of all business owners.
• Business tax returns for the past three years.
• Projected financial statements, including profit and loss statements.
• Detailed business plan outlining the purpose of the loan and how funds will be utilized.
• Documentation of existing debts and liabilities.

Eligibility Criteria for the 504 Loan Application

To qualify for the 504 Loan, businesses must meet specific eligibility criteria:

• Be a for-profit entity operating in the United States.
• Have a tangible net worth of less than fifteen million dollars.
• Generate an average net income of less than five million dollars after taxes for the past two years.
• Use the loan proceeds for eligible purposes, such as purchasing real estate or equipment.

Application Process and Approval Time

The application process for the 504 Loan can vary in duration but typically follows these stages:

• Initial consultation with an approved lender to discuss eligibility and requirements.
• Submission of the completed application and required documents.
• Review period by the lender, which can take several weeks.
• Approval notification, followed by the finalization of loan terms.

Overall, the entire process from application to approval may take anywhere from one to three months, depending on the complexity of the application and the lender's workload.

Form Submission Methods for the 504 Loan Application

The 504 Loan Application can be submitted through various methods, ensuring flexibility for applicants:

• Online submission via the lender's secure portal, which allows for quicker processing.
• Mailing a physical copy of the application and supporting documents to the lender.
• In-person submission at the lender's office, which may provide immediate feedback and assistance.