NEDCO CDC is a non-profit organization in Northeastern Pennsylvania that helps small businesses acquire funding under the 504 loan program offered by the Small Business Administration. Our company gives individualized attention to each of our customers to learn about their objectives and requirements. Because of our vast knowledge of the SBA 504 loan program, we can assist clients in determining which financing choices are the most suitable for the projects they are working on. We take great pleasure in maintaining open lines of contact with our clients and keeping them up to date regarding the status of their loan applications.
The Small Business Administration (SBA) has established specific requirements that a company must satisfy to be eligible for a 504 loan (SBA). To begin, the company must be a for-profit firm based in the United States and be actively engaged in business there. In addition, the company needs to meet the SBA’s size requirements, which, in most cases, entails having fewer than 500 employees (although this number can shift depending on the sector).
A 504 loan is intended to assist enterprises with acquiring fixed assets, such as real estate or machinery, that will be used for operational requirements within the company. As a result, the company must have a plan to use the funding from the loan to either buy or upgrade such assets. Also, the funded assets must have a useful life of at least ten years to qualify.
Last but not least, the potential borrower needs to be able to provide evidence that they are financially capable of repaying the loan. This includes submitting financial statements and any other pertinent documents, in addition to completing specific requirements pertaining to one’s creditworthiness. To determine whether or not the company will be able to repay the loan, the SBA will look at the company’s cash flow and other financial indicators.
In general, being eligible for a 504 loan necessitates having a solid credit history and being financially stable, in addition to having a specific plan for how the loan proceeds will be used to acquire or improve fixed assets for the company.
We collaborate with a diverse range of companies, including those just getting off the ground, those that have been around for a while, and some who have struggled financially. Our team takes a client-specific strategy to assist each client in securing financing, and we help and support small businesses in their efforts to expand and succeed.
At NEDCO CDC, we know how difficult it is to run a small business, and we are committed to providing you with the assistance you need to secure a 504 loan. Get in touch with us right now to find out more about the ways in which we can help you grow your small business.