SBA 504 Loan Program
Does your small business need financing?
Consider the SBA 504 Loan Program from the WBDC and the U.S. Small Business Administration
An authorized Certified Development Corporation (CDC) since 1981, the WBDC is a private, non-profit corporation whose mission is to serve as an innovative and leading force in the economic development of the City of Worcester and region, resulting in job creation and tax base expansion. The WBDC has approved in excess of $100 million with over 250 growing businesses throughout Massachusetts.
What is an SBA 504 Loan?
Often, a growing business is unable to obtain traditional financing because of the standard requirement for a down payment of 30% or more. When a conventional loan is not the right alternative, a 504 loan is often the answer. The WBDC/SBA 504 Loan Program gives small business owners access to the same low-cost, fixed-rate, long-term financing large businesses enjoy through bond markets.
Advantages of the SBA 504 Loan Program:
A lower down payment - usually 10%
Borrowers can obtain up to 90% financing of the total project cost
Long-term, below-market, fixed rate financing eliminates interest rate increases and lowers monthly payments
A longer repayment term of up to 25 years enables loan payments to be satisfied by current cash flow generated by the asset, freeing up working capital
Eligibility Guidelines
To be eligible, a business must be a for-profit corporation, limited liability company, partnership or proprietorship with a tangible net worth not to exceed $20 million. Average net profits after taxes cannot exceed $6.5 million per year for the previous two years. Public purpose must be demonstrated through job creation or other community benefit.
Loan proceeds may be used for:
Purchasing land and/or existing buildings
Constructing, modernizing, renovating or converting owner-occupied facilities
Purchasing machinery and equipment to be used for 10 years or more
Current Debenture Rates
March 2024
Traditional 504 Rates*
25 Year Rate 6.49%
20 Year Rate 6.52%
10 Year Rate 6.49%
*All in rates, which are calculated by adding the note rate and servicing fees. Rates subject to change, please contact us for the most current rates.
VetLoan Advantage Program
The WBDC is proud to partner with the National Association of Development Companies (NADCO) and the Small Business Administration (SBA) and their participation in the
For More Information.
Contact us to see how we can help you and your small business!
