SBA's 504 loan program for industrial or commercial buildings

The 504 Loan Program allows small business owners to purchase an industrial or commercial building at below-market interest rates with a minimum of ten percent down payment or equity injection. The loan proceeds may be used to purchase or remodel an existing building, construct a new facility or to purchase equipment with a minimum economic useful life of 10 years.

The 504 loan is structured so a bank loans 50% of the total project; then a Certified Development Company (CDC) issues a second loan for 40% of the total project. The borrower contributes 10%. You can ask your bank to fund the 50% or the CDC can find a lender.

CDCs that loan in your area include:

Advantage Certified Development Corp.
11 Golden Shore Suite 630
Long Beach
(562)983-7450
http://www.advantagecdc.org

Business Finance Center
6055 E. Washington Blvd. Suite 414
Commerce
(323)278-9600

California Statewide Certified Development Corp.
426 D Street
Davis
(530)756-9310
http://www.cscdc.org

CDC Small Business Finance Corp.
925 Fort Stockton Dr.
San Diego
(619)291-3594
http://www.cdcloans.com

Landmark Certified Development Corp.
4411 East Whittier Blvd. Suite C
La Habra
(562)690-6400
http://www.landmarkcdc.org

Valley Certified Development Corp.
7035 N. Fruit Ave.
Fresno
(559)438-9680
http://www.vsbdc.com