commercial real estate and long-term equipment financing
DESCRIPTION
. Commercial Real Estate and Long-Term Equipment Financing www.nsdc.com. Nevada State Development Corp. Non-profit organization created in 1981 Assist in the economic development of businesses throughout Nevada Measured by job creation - PowerPoint PPT PresentationTRANSCRIPT
.
Commercial Real Estate and Long-Term Equipment Financing
www.nsdc.com
www.nsdc.com
Nevada State Development Corp.
• Non-profit organization created in 1981• Assist in the economic development of
businesses throughout Nevada– Measured by job creation
• Underwrite, process, close, and service SBA 504 loans
www.nsdc.com
SBA 504 Loan Program
• For purchase of long-term assets– Commercial real estate for the owner/user• Min. 51% owner occupied (60% for new construction)
– Equipment with useful life of at least 10 years• Loans of up to 90% of purchase price:– Bank loan of at least 50%– SBA loan of up to 40%– Borrower contribution of at least 10%
www.nsdc.com
SBA 504 Loan features
• SBA portion $5 million (maximum)• Only collateral is the project property• Fixed interest rate for full loan term– 10 or 20 year terms offered
• Loan fees financed in the loan• Soft costs can be included in financing• Uses no taxpayer money
www.nsdc.com
SBA 504 Loan Benefits
• Business owners retain more working capital for their business and to create jobs– only 10% down payment– Soft costs and fees are financed
• Occupancy costs are stabilized– Fixed interest rate for full life of loan
• Bank’s risk is reduced with only 50% LTV– Instead of 70% exposure with conventional loans
• Same paperwork that bank needs
www.nsdc.com
SBA 504 Loan Benefits (cont.)
• Tax and investment advantages of ownership• Other assets remain free of liens• Accessible, prompt, personal service from
local NSDC staff through application, approval, funding, and servicing the loan
www.nsdc.com
NSDC staff will help
• Meet with the business owner to discuss the program in detail
• Review the paperwork with borrower• Partner directly with bank• Understand the project and business– Determine eligibility– Underwrite the loan and recommend to SBA
• Prepare loan documents• Coordinate funding• Service the loan for its lifetime
www.nsdc.com
www.nsdc.com
Northern Nevada Office6572 S McCarran BlvdReno, NV 89509
Phone (775) 770-1240Toll free 1-800-726-2494
Southern Nevada Office1551 Desert Crossing CtLas Vegas, NV 89144
Phone (702) 877-2803Toll free 1-877-732-7101