SBA lenders
Growth Corp
Growth Corp is a not-for-profit certified development company empowered by the U.S. Small Business Administration to deliver the SBA 504 loan program. It focuses exclusively on small business lending, economic development and job creation, and describes itself as the largest 504 lender in Chicago, the top CDC in Illinois and a top ten 504 lender nationwide.
The 504 program finances owner-occupied commercial real estate, new construction, renovation, leasehold improvements, heavy equipment, green energy upgrades and refinancing. It offers up to 90% financing with a low down payment, a fixed rate for 10, 20 or 25 years, no balloon payments or call provisions, and it can include soft costs such as furniture, fixtures and fees.
Growth Corp's territory covers all 102 counties in Illinois plus parts of Missouri, Indiana, Iowa and Kentucky, with loan officers assigned to the Chicago area and to central and southern Illinois and Greater St. Louis. The SBA has recognised the firm as an Accredited Lender after reviewing its policies, procedures and prior performance, which gives it authority to process and close 504 loans on an expedited basis; under ALP Express it can approve, authorize, close and service 504 loans of $500,000 or less.
The company publishes current 504 debenture rates and a monthly rate history, along with borrower and lender training material. The rate is set when the debenture pool sells to the private market, so the rate a borrower sees at application is not the rate they end up with.
Best for
Illinois small businesses, and businesses in nearby parts of Missouri, Indiana, Iowa and Kentucky, buying, building or renovating an owner-occupied facility or financing heavy equipment with a long fixed-rate SBA 504 loan.
What they do
- SBA 504 loans for commercial real estate
- SBA 504 construction and renovation financing
- SBA 504 equipment financing
- SBA 504 debt refinancing
- Green energy upgrade financing
- Leasehold improvement financing
- 504 loan servicing and annual financial collection
- SBA 504 training for commercial lenders
Details
| Attribute | Value |
|---|---|
| Ownership | Nonprofit |
| Licenses | SBA Accredited Lender Program (ALP) certified development company |
What stands out
- A not-for-profit CDC empowered by the SBA to deliver 504 loans throughout Illinois and parts of Missouri, Indiana, Iowa and Kentucky.
- Territory covers all 102 counties in Illinois.
- Holds SBA Accredited Lender status, with ALP Express authority over 504 loans of $500,000 or less.
- Describes itself as the largest 504 lender in Chicago, the top CDC in Illinois and a top ten 504 lender nationwide.
- Publishes current 504 debenture rates and a monthly rate history.
Common questions
- How much can the SBA 504 portion of a project cover?
- The 504 portion cannot exceed $5 million, or $5.5 million if the business meets an approved public policy goal or is classified as a small manufacturer (NAICS codes beginning with 31, 32 or 33). That limit applies only to the SBA portion; there is no overall maximum project size.
- What are the equity requirements on a 504 loan?
- Generally 10%. That rises to 15% if the business has been owned less than two years or if the real estate is special-use, such as a hotel, bowling alley or car wash. A 20% down payment is required when the project involves both a start-up business and a special-use property.
- How is the interest rate on a 504 loan set?
- The rate is determined when the 504 debenture pool is sold to the private market, based on market conditions at that time. That typically happens about six weeks after the project is fully complete. Because all 504 loans are funded through the same market sale process, rates in a given month are the same nationwide regardless of which CDC handled the loan.
- Can a borrower have more than one 504 loan?
- Yes. A business can take a second, third or fourth 504 loan. The constraint is the maximum lending limit of $5 million or $5.5 million, not the number of SBA loans outstanding.
- Can real estate and equipment be financed in the same 504 project?
- Yes, in two ways. Growth Corp can prepare two 504 loans, a 20-year loan for the real estate and a 10-year loan for the equipment. Or, if the weighted useful life of the equipment does not pull the overall project life below 20 years, it can prepare a single application covering both.