504 Loan Application Denver Urban Economic Development Form

Instructions and help about 504 Loan Application Denver Urban Economic Development

so there's another loan program from the SBA it's sort of the second biggest program called an SBA 504 loan and this is a loan program that's principally used for financing owner occupied or owner-operated commercial real estate and for purposes of acquisition refinance Renovations or even ground up construction and it also as it enables financing of heavy equipment those are the two primary things that a 504 would do either real estate or heavy equipment and the 504 has a very unique structure in that it's really two loans and so what happens is there is a typically a 50 percent first lien loan okay the total project cost and that's made by A lender such as ourselves we're called the third party lender for some reason but then there's the second lien loan which is ultimately going to be guaranteed by the SBA it has 100 government guarantee on for the SBA but it's a bond that gets placed every month and so as you may or may not be aware there's a process by which a bond offering occurs