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At Preferred Lending Partners, we bring a new spirit to business lending. Whether you’re looking for a small business loan, commercial loan, or commercial real estate financing, our experienced staff will guide you successfully through the process.
Preferred Lending Partners specializes in SBA 504 loans for small business expansion. SBA 504 loan programs provide capital funding to help businesses purchase equipment and to move from leasing to owning commercial real estate. SBA 504 borrowers benefit from a lower down payment, lower interest rates, and longer terms. Whether you’re the owner or co-owner of a company, the advantages of expanding your organization can be invaluable. Moreover, acquiring commercial property offers many immediate and long-term benefits over leasing.
There is no “typical” SBA 504 client, but the types of businesses served by the 504 program include companies owned by women or minorities, businesses located in rural areas or in business revitalization districts. Our experienced staff works closely with each client to package, process, close, and service all SBA 504 loans. Preferred Lending Partners is a Certified Development Company serving all of Colorado with our primary focus on the counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson.
It’s official: SBA-504 just got even better
President Obama signed the Small Business Jobs Act Sept. 27 that makes SBA-504 loans even more attractive to banks and borrowers.
The most immediate opportunity: Debt Refinancing
*****NEW: NO MORE BALLOON OR MATURITY!*****
- The small business has been in operation for more than two years.
- The debt must be current and for a minimum of 1 year.
- The refinancing project does not involve financing expansion of the business.
- The debt being refinanced is “Qualified Debt.”
- Commercial loans (non-government debt)
- Debt has to be 2 years old prior to the date of application
- The debt refinance must be for the benefit of the business
- Substantially all (85% or more) of the proceeds of which must have been used for 504
eligible purposes to acquire, construct, or improve long-term fixed assets, such as real
estate and equipment
- Financing of fees such as; prepayment penalties, appraisal costs, and other professional
soft costs are eligible
- The appraisal must substantiate the project and the appreciated value will be counted toward the equity requirement; i.e. "no additional cash required to refinance under our program."
- The borrower’s 10% contribution may be satisfied by its equity in the eligible fixed asset(s) serving as collateral for the refinancing project or by the equity in any other fixed asset(s) that are acceptable to SBA as collateral for the refinancing project.
- When the fixed asset is serving as collateral is a limited or special purpose property, Borrower will NOT be required to increase its contribution to 15% (as would be required in a regular 504 Project).
- Job retention goals apply.
- As it stands today the program will end September 27, 2012.
- This refinancing program could run out of money, therefore re-appropriation of funding would be necessary.
Other good opportunities to be rolled out as SBA fine-tunes policy:
- Increased Loan Maximum: 504 maximum loan size will permanently increased to $5 million ($5.5 million for manufacturers and energy loans)
- First Mortgage Pooling program: Extends the first-mortgage pooling program two years (at least through Sept. 2012)
- Alternative Size Standard: pending an alternative applicable to both 504 and 7(a), establishes a standard of maximum tangible net worth of $15 million and 2-year average net income after federal income tax of $5 million, which will apply to both programs.
Preferred Lending Partners is proud of its commitment to the future of Colorado communities and business growth. Staff members have strong ties to our region and can offer clear perspectives on local business financing and regional commercial development.
Building relationships with customers and providing up-to-the-minute knowledge of innovative business practices and tactics can make your vision a reality.
Are you ready to reach new heights???
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