How It Works
CTCIC partners with your bank or other lender (the Third Party Lender) to provide a financing package up to 90% of your Project. The Third Party Lender typically provides financing for 50% of the Project and secures its loan with a first position lien on the asset(s) being financed (the real estate and/or equipment). CTCIC provides financing for an additional 40% of the Project using the SBA 504 program and secures its loan with a second position lien on the asset(s) being financed. The Borrower funds the final 10% from business or personal assets or subordinated debt (the equity injection).
| Source of Funds | Interest Rate | Collateral |
| Third Party Lender | Fixed or Variable | Secured with a 1st position lien on the asset(s) being financed |
| CTCIC/SBA | Fixed | Secured with a 2nd position lien on the asset(s) being financed |
| Borrower Equity Injection* | n/a | This amount can be in the form of cash into the project or, if an expansion project, existing equity in the project real estate |
*Start-up AND/OR Special Purpose Building may require a higher percentage of equity.