Fair Lending Policy
In keeping with its economic development mission, SBCC is committed to the principles of fair or equal opportunity lending.  A consistent and high level of assistance and servicing will be provided to all small business or business owners regardless of race, national origin, religion, sex, age, marital status, disability, receipt of public assistance, or other factors.  Underwriting standards will be applied fairly and consistently permitting access to credit for  abroad range of customers.  Applicants with equivalent credit qualifications will receive the same consideration.
Does My Business Qualify?
Eligible businesses must:​
 
  • Be a for-profit company
  • Located in the United States
  • Be an operating company
  • Demonstrate need for credit
  • Meet an economic development objective
Ineligible businesses include:​
 
  • Not-for-profit businesses
  • Developers
  • Financial institutions
  • Restricted patronage
  • Gambling facilities
  • Apartment buildings
What Expenses Qualify?
Eligible Expenses:​
 
  • Purchase of land and existing building

  • New building construction

  • Leasehold improvements and furniture and fixtures

  • Eligible debt refinancing 

  • Purchase of machinery and equipment

  • Soft costs (architectural and engineering, appraisal, environmental investigations, points, fees, interim interest)

Ineligible Expenses:​
 
  • Accounts receivable

  • Working capital

  • Franchise fees

  • Equipment or furnishings with less than a 10 year useful life; unless essential to and a minor part of the project which shall not affect the weighted average maturity

SBA 504 Debt Refinance Without Expansion
Debt Refinancing Without Expansion:​
 
  • Qualified debt must have been incurred not less than 2 years prior to the date of application and secured by an Eligible Fixed Asset

  • Project can consist of refinanced debt, professional fees, points, fees and interest on interim loan

  • Project must satisfy the 504 loan program job creation/retention requirements

  • Project cannot involve any expansion to the business

  • Refinancing project cost is determined by appraised value

  • Will require an appraisal dated within 12 months of the application

Qualified Debt:
  • Commercial loan

  • Incurred at least 2 years prior to date of application

  • 100% incurred for the benefit of small business seeking the financing

  • 85% or more of the loan proceeds were used for 504 eligible purposes

  • Borrower has been current on payments for at least 1 year prior to date of application

  • Secured by 504 eligible fixed assets

  • Not subject to a guarantee by a Federal agency

  • Not a Third Party Loan which is part of an existing 504 project

  • May consist of a combination of two or more loans, provided that each of the loans satisfies the Qualified Debt requirements

SBA 504 Debt Refinance With Expansion
Debt refinance is allowed for up to 50% of the expansion costs of the project
  • Ex.) If you have a request to add a wing to a building for $1,000,000 then the total amount of existing debt to be refinanced cannot exceed $500,000

  • If the existing debt exceeds 50% of the cost of the expansion, the remaining amount of the debt may be added to the 1st mortgage (must be existing debt on the project property)

  • Expansion includes acquisition, construction, or improvement of land, building or equipment for use of the small business

  • Borrower has been current on payments for at least 1 year prior to date of application

Refinance must provide substantial benefit to the small business
  • New installment amounts attributable to the debt being refinanced must be at least 10% less than the existing installment amount(s)

  • Prepayment penalties, financing fees, and other financing costs must also be added to the amount being refinanced in calculating the percentage reductions in the new installment payment

  • Loans with balloon payments meet the Substantial Benefit test

  • Loans with seasonal payments meet the test if there is 10% improvement in the installment when calculated by averaging all payments of the most recent 12 month period