Capital Development Advises Small Business Buyers to Act Now for SBA 504 Loans

The SBA 504 expiring fee waiver and the impending rate increase provide a powerful incentive for buyers to act now.

Denver, CO, June 05, 2009 --( As announced last week, the rate on the SBA 504 loan will go up for any loans approved after 10/1/09. This is because 504 program is a zero subsidy program, and with increasing defaults, the subsidy is going from 0% to .39% to offset increased costs to the government. Today’s rate is still a very affordable 5.374% fixed for 20 years, but rates are expected to rise. As part of the stimulus package earlier this year, the SBA eliminated the 1.50% CDC fee on the second, and the 0.50% fee on the first. That lasts until the funds run out, expected to be some time in the fall.

Mortgage Brokers, it pays to do your SBA loans with Capital Development, unlike ordinary banks who only allow you to earn origination on the 1st mortgage, with Capital Development you can earn origination and rebate on the 1st, plus origination on the 2nd.

SBA 504 program highlights:
• Up to 90% LTV
• 20 Year Fixed Rate – Currently 5.374%
• Fully Amortizing – No Balloons
• Owner User Properties
• Use proceeds for: Purchase, Construction, Expansion
• Business Acquisition allowed for Real Estate portion
• Start-up ventures will be considered
• Soft Costs can be financed
• Additional Allowances for Minorities, Veterans, Women Owned &
Manufacturing Businesses
• SBA Green 504:
Small businesses may qualify for up to $4 million under new SBA energy goals when used to Purchase, Construct, Convert or Expand a building that:
• Reduces company energy consumption by at least 10%
(solar, efficient lighting, improved insulation)
• Produces renewable energy such as: Wind, Solar, Biomass, Hydropower or Geothermal.

For more information or to obtain SBA 504 financing, please contact:

Capital Development
Nationwide Commercial Real Estate Lenders
(866) 456-2402

Capital Development
Julianna Nieves
(866) 456-2402