PeopleFund offers the SBA Microloan for small businesses, the 7A Community Advantage for growing businesses, and the SBA 504 Loan for businesses looking to expand through purchase of commercial real estate or long-term equipment.
The SBA 504 loan is designed for the procurement of long-term assets such as land, buildings, and equipment with a useful life expectancy of at least 10 years. It may not be used for working capital, inventory, real estate investment properties, or vehicles.
Since SBA 504 Loans are tandem loans, their approval relies upon participation from more than one lender. PeopleFund works with other lenders to help finance up to 90% of the project’s total cost. Does it sound too good to be true? The SBA’s goal with the 504 program is to develop rural areas, elevate underrepresented entrepreneurs (women, minorities, and veteran small business owners), and improve areas in need of economic development. The 504 loan also works to promote LEED certified projects and environmentally sustainable construction, reduced energy consumption, and helps areas impacted by federal budget cutbacks.
Borrowers may finance up to 40% of the cost of a project at a competitive fixed interest rate over a 10 or 20-year span putting down as little as 10% in equity. (Businesses in operation less than two years are considered startups by the SBA, and require the borrower to put up at least 15% of total project costs.) The loan also allows borrowers to roll eligible soft costs into project financing.
B.U.I.L.D. is here to help entrepreneurs find the resources they need to build startups, small businesses, and nonprofits in Dallas.
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