This podcast covers the Small Business Administration’s (SBA) Certified Development Company (504) loan program. The 504 loan is a long-term, fixed-rate loan to help small business owners expand their already existing businesses.
The podcast is in an interview format with Ron Johnson from the SBA interviewing Jim Hammersely, the Director of the Office of Financial Assistance Loan Programs at the SBA.
Highlights from the podcast:
Ron: Jim, can you tell us what types of businesses are eligible for this program?
Jim: Basically, any small business that you can think of is going to be eligible. It has to be a for-profit business and there are certain restrictions related to gambling and other areas but pretty much what most people think of as a small business is going to be eligible.
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Ron: What can the 504 funds be used for?
Jim: The 504 funds are somewhat limited in their use and they are limited to land, buildings, equipment and heavy assets. You cannot use a 504 loan for a working capital or inventory purchase. It’s primarily designed, as I said, to get fixed rate money in the hands of small businesses that are financing owner-occupied real estate.
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The SBA’s Long-Term, Fixed-Rate Loan Guaranty Program
( Transcript)
If you have any experience with these 504 loans would you leave your experience in the comments below? Thanks!
