Basic 504 Requirements:

Up to 90% financing on Commercial Real Estate and Equipment

25 year Fixed rate financing

Low down payments, typically 10%

Borrow up to $5 M from SBA

up to $5.5 M for being  Energy Efficient If the Project to be funded satisfies one of these goals, the Project is eligible even if the Project does not meet the job creation or job retention requirements a. Reduction of existing energy consumption by at least 10% b. Increased use of sustainable designs c. Plant, equipment and process upgrades of renewable energy sources such as the small-scale production of energy

          or Small ManufacturerSBA defined as a business with its primary NAICS Code in Sectors 31, 32, and 33 and all of its production facilities are located in the US. Benefit from SBA financing as $5.5M is available to them PER PROJECT. Job creation requirement is 1 job for every $120,000 borrowed from SBA.

Most for profit Small BusinessesSmall business is either: net worth of $15.0 million & net profits after taxes under $5.0 million OR meet SBA's other size standards (by scales or number of employees depending on SIC code) are eligible to participate

504 Refi Requirements:

Been in business for 2 years or more

Conventional debtCannot be government financing of any kind (meaning: 7(a), other 504 loans, express loans etc.), debt must be at least 6 months old.  Note that existing debt is not eligible until 6 months have elapsed from the date of the last disbursement.  This would apply to loans with a disbursement period for construction etc.

Provide payment history for loan to be paid off.  Any delinquency in payments should be thoroughly explained in a letter of explanation to be reviewed during the credit underwrite.

EquityMonetary value of a property or business beyond any amounts owed on it in mortgage, claims, liens, etc. in the real estate used for down payment

If appraisal supports it, cash out up to 20% of appraised value is available for eligible business expenses

Existing debt subject to a federal guarantee is eligible under certain conditions – call PLP to discuss the conditions further

Loan Servicing:

Payments- PLP is your resource for obtaining this payment information.

Missed Payments- Payments will be drafted the 1^st business day of the month. All payments not posted by the 15^th will incur a late fee.

Year-end Statements -Year-end interest statements are not sent out until the end of January.

Payoff SBA loan- Notify PLP as soon as possible.  NOTE: You cannot make extra payments to the principal on this loan.

Servicing Requests – Servicing requests that require SBA approval (ex. SubordinationThe act of placing debt in a lower position, behind a “new” loan., AssumptionThe act of taking over another’s debts or obligations.), please allow 15 business days for approval.