If you are a small or medium-sized business owner and have faced the prospect of high down payments and restrictive loan criteria, take heart.  Centralina Development Corporation, Inc. (CDC) can offer you an attractive real estate and fixed asset loan program.

The 504 Loan Program is the first national financing program specifically designed to meet the needs of expanding small and medium-sized business, and to recognize the contributions of these enterprises towards job growth in the U.S.

The program boasts benefits and opportunities that can help make growth financing for healthy businesses a much more pleasurable experience, while bringing debt service in line with the businesss cash flow.

By participating in the 504 Loan Program, Centralina Development Corporation, Inc. creates financing advantages for both you and your bank.

For the business seeking to purchase or build long-term fixed assets such as real estate or equipment, there is a low down payment allowing the company to conserve valuable operating capital.  The 504 Program also offers a reasonable fixed interest rate, ensuring no future rate fluctuations to create sleepless nights.

The program provides for long-term financing (20 years for real estate and 10 years for equipment), so the businesss cash flow is not crushed by monthly payments.

Soft costs, such as design, loan closing costs, interim interest, and appraisal and environmental fees, can be included in the total financing package, another way to preserve working capital.

For the bank, the 504 Program reduces exposure and increases opportunities to small and medium-sized businesses that are looking to grow.

The banks collateral risk is minimized by a first-lien position and a low loan-to-value ratio.  The bank can also make its own credit decisions, use its own loan documentation, do no Small Business Administration paper work, and comply with the Community Reinvestment Act.  As if thats not a good enough deal, the bank can set its own rate and fees.

You and your bank save time and effort by using the CDC, whose professional staff can tailor a financing package to meet program guidelines and credit criteria.

The CDC is very user-friendly and works directly with you to package, process and close the loan.  We also provide service throughout the life of a loan.

The basic eligibility criteria for the 504 Loan Program are that the business operate for profit and have a positive earnings history; that any building or equipment acquired will be used in the businesss operations; and, that the resulting expansion will create new jobs or meet other economic development programgoals.  These are briefly defined as activities which help revitalize business districts, expansion of minority business development, expansion of exports, enhance economic competition, promote rural development, assist in business restructuring arising from federally mandated standards or policies, or responding to changes necessitated by federal cutbacks.

The CDC issues bonds, which are sold in the private bond market to fund the 504 portion of the financing.  The bond is fully guaranteed by the U.S. Small Business Administration, hence the competitive interest rate.

This set of benefits and terms created under the 504 Loan Program allows the business to take on an expansion project with the least amount of risk and, therefore, the highest probability of success.  The 504 Loan is intelligent financing that makes our region work.