• Commercial loans for healthy expanding businesses.
• Fixed rate below market financing.
• Financing for fixed assets: real estate, machinery and equipment.
• Term of 20 years for real estate, 10 years for machinery and equipment.

• Long term below market fixed rate financing.
• Equity requirement of 10% or more for customer.
• Bank can provide 90% financing for customer.
• Bank can participate in larger transactions.
• Bank enjoys first lien, lending 50% of value at market rate and fees.

• For profit businesses.
• Tangible net worth not to exceed $7 million.
• Net profit after taxes not to exceed $2.5 million during previous 2 years.
• In labor surplus areas, these ceilings increased to $8.75 million and $3.25 million, respectively.

• Purchase land, purchase or construct building.
• Modernize, renovate or improve building.
• Purchase machinery and equipment with 10 year useful life.
• Soft costs.
• Total project size $125,000 minimum.
• No maximum total project size.
• Job creation requirements one per $50,000 in 504 funds or meeting other economic development goals. For loans to small manufacturers, the job creation requirements may be one per $100,000 in loan funds.
• Maximum 504 loan size $1,500,000 or $2,000,000 under the following Public Policy Goals:
  • Business district
  • Revitalization
  • Exporting
  • Minority enterprise
  • Rural development
  • Modernization
  • Adverse impact of Federal fund reductions
  • Upgrading for health, safety, or environmental reasons
  • Women-Owned Businesses
  • Veteran-Owned Businesses

• Not-for-profit organizations
• Speculative development.
• Lending institutions, insurance companies.
• Gambling concerns and private clubs.

• Refinancing.
• Working capital.
• Inventory.
• Rolling stock.
• Construction period financing.

• Rate: Below market fixed rates for a term of up to 20 years.
• Structure: Healthy Expanding Business
  • 50% Bank in 1st Lien
  • 40% 504 in 2nd Lien
  • 10% Equity
• Start-up or Special Purpose Building will require 15% equity.
• Start-up and Special Purpose Building will require 20% equity.

• Minimum 10 year term on real estate, minimum 7 year term on machinery and equipment.
• Market rate and fees.
• Covenants established by lender.
• One time 1/2% fee to SBA on lender's participation, can be added to interest rate in interim loan.

• SBA Authorization 30-40 days after lender commitment.
• Mid-Atlantic packages and facilitates approval.
• Mid-Atlantic can structure using other available public financing sources.

• Processing Fee: 1.50% of 504 loan.
• Debenture Fees: 1.15% of 504 loan.
• All of the fees can be financed.

• Personal guaranty by 20% or greater owner.
• Key man life insurance, especially on sole proprietor.

• Anthony "Tony" Hamlett, President
• or ask to speak to a loan officer

©20054Chesapeake Bay Internet Associates: All Rights Reserved.