Advantages & Benefits

For Lenders

Set Yourself Apart by including a CTCIC 504 Loan option alongside a conventional loan option in your financing proposal for owner-occupied commercial real estate. Your client will recognize the added value you bring to the process and appreciate the opportunity to choose between options regardless of whether the CTCIC 504 Loan option is selected.

Have a Stronger Collateral Position by taking first lien position with 50%-60% loan-to-value, reducing your exposure and credit risk. And with the SBA as the owner of the subordinate loan, you know the loan will not be called even if the value of the collateral drops dramatically.

Manage Overall Lending Limits and Industry Exposure and reduce regulatory concerns. With the CTCIC 504 Loan, smaller lenders can entertain larger projects and larger lenders can limit their exposure to certain industries and/or to a particular borrower.

Assist More Bank Customers with the ability to leverage your lending capacity across more borrowers; diversify default risk; and reduce loss in the event of default.

Gain New, Profitable Relationships with growth companies that typically need other banking services. A CTCIC 504 Loan often becomes the basis of the entire banking relationship.

Secondary Market - There is a secondary market for the bank’s first mortgage loans from a CTCIC SBA 504 Loan financing package. Your bank can reduce its exposure to zero with a secondary market sale and enhance its fee income from sale premiums while retaining the primary banking relationship.

CRA Credit – Because this is an SBA product, your company’s participation is eligible for Community Reinvestment Act (CRA) credit on certain projects.

For Commercial Realtors & Brokers

Qualify more potential buyers by taking advantage of CTCIC 504 Loan’s lower equity requirement (as low as 10% in most cases).

Quick approvals mean no delay in the closing process when using a CTCIC 504 Loan. We are very sensitive to the fact that your compensation is linked to closing deals and we work with our banking partners to deliver an SBA loan approval on time to meet your closing date.

For CPAs & Financial Planners

A finance option for your clients that includes an extended term, below market fixed rate for the length of the extended term, minimal equity requirement; limited collateral; and the ability to finance soft cost and fees.

For Economic Development Professionals

An ability to partner with CTCIC and offer a 90% financing incentive to your small business base looking to expand and create jobs in your community. CTCIC will work seamlessly with you to deliver the program as a value added service from your office to the communities you serve.