This program
provides small businesses with long-term, fixed-rate financing for
major fixed assets, such as land and buildings. It
is designed to create employment opportunities by enabling expanding
businesses to reserve working capital for growth.
| Use of Funds |
 Real
property acquisition
New facilities construction
Renovating or converting existing facilities
Long-term machinery and equipment
 purchases |
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| Loan Structure |
50% financing from Cathay Bank
40% financing from SBA 504 Loan
10% down payment from borrower |
|
| Loan Amounts |
The maximum SBA participation of 2nd Trustee Loan is $1,500,000.
If the borrower meets any of the SBA public policy goals, the
amount is up to $2.0 million, and $4.0 million for small manufacturers. |
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| Terms and Rate |
Cathay
Bank portion can be amortized to a
maximum
of 25 years with a 10-year call
provision
at
the current market rate.
SBA
504 portion can be amortized over 10 or
20 years
terms with a fixed below-market rate. |
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Eligibility
Requirements |
Must
be a "small business" as defined by the SBA.
Net
Profit equal or less than $2.5 million after
Taxes
based on a 2-year average, AND
Tangible
Business Net Worth equal to or less than
$7.5 million.
Meet owner occupancy requirements. |
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Take care of your finances right from your PC. |
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