California Lending Partners



Program Details


Benefits & Rates


FAQ


Pre-Qualify Now


Loans: Program Details

REAL ESTATE. EQUIPMENT. ENERGY.

Working in partnership with commercial banks, community banks, credit unions and other lenders, California Lending Partners provides expanding businesses financing with the following SBA 504 loan structure:

50% Bank Financing

• First lien or mortgage loan

• Competitive rates and terms


40% SBA/California Lending Partners

10- or 20-year fixed rate loan up to $5.5 million for manufacturers or projects related to energy efficiency; $5 million for other loans


10% Cash Down Payment

• Borrower contributes a minimum of only 10% of loan amount

Total project size is typically under $12 million but can be more if the down payment exceeds 10% or if the bank loan is more than half of the entire loan amount.

Who is Eligible?

For-profit and owner-operated businesses that have a net worth less than
$15 million and after-tax income less than $5 million, on average, for the prior two years. For commercial real estate purchase, renovation, or refinance, the business must occupy at least 51% of a building or 60% of a newly constructed property.

For businesses using SBA 504 loans for equipment or energy efficiency:
• The useful life of the equipment needs to be more than 10 years;
• The energy efficiency improvements should reduce usage by at least 10%.

The Small Business Jobs Act effective September 27, 2010 revises the eligibility rules for passive income. Businesses that generate revenues from what is essentially rental income, i.e. hair salons, storage unit rentals, solar energy and windmill farms, etc. are now eligible for SBA 504 loans.

Another provision of the Small Business Act initiates a new two-year program that allows SBA 504 loans to refinance up to 90% of real estate loans coming due on owner-occupied commercial properties. Refinancing of up to 125% loan-to-value is permitted with additional collateral or cash injection, enabling refinancing of qualified existing debt without business expansion, as was previously required. 

All terms and eligibility requirements are subject to change.


SBA 504 loans can be used to purchase, renovate, refinance or construct commercial real estate, make energy efficiency improvements to buildings, generate renewable energy/fuels, or purchase equipment.
California Lending Partners can also help businesses package SBA 7A loans. Contact us for more information.