90% Fixed Rate Financing for Owner-Occupied Real Estate and Machinery & Equipment
The UNBEATABLE Advantages
Conserve Valuable Operating Capital / 90% Financing
- The minimum 10% down payment is 10-20% lower than the equity requirement for a conventional loan
- Soft costs (architectural and engineering fees, appraisal and environmental assessment costs, title search and title insurance costs, interest on bridge financing) can be included in a 504 loan package and financed
Low Fixed Rate
Longer Repayment Term
- Real Estate Purchases: the CTCIC 504 loan will have a full 20 year term with no balloon; the Third Party Lender’s loan must have a term of at least 10 years
- Machinery and Equipment Purchases: the CTCIC 504 loan will have a full 10 year term with no balloon; the Third Party Lender’s loan must have a term of at least 7 years
Collateral Requirement
- For established businesses where cash flow is adequate, collateral is generally limited to the assets being acquired with the CTCIC 504 loan package (i.e. real estate and/or machinery and equipment)
- Personal residences and other business assets (inventory, accounts receivable) can remain available for future financing needs