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Affordable fixed-asset financing for small businessesSBA 504 LoansSteve GrelleSVP of Business Lendingsgrelle@edcscc.com | (636) 229-5685Scott DrachnikPresident/CEOsdrachnik@edcscc.com | (636) 229-5281edcscc.comConnectServing Missouri and the Illinois counties of Bond, Clinton, Jersey, Madison, Monroe, and St. Clair

SBA 504 LoansLong term, fixed rate financingA complete solution for your business!Most traditional business loans requirea 20% down payment and can havehigh interest rates that aren’t alwaysfeasible for small businesses. An SBA 504 loan is different. It combines a traditional bank loanwith low-interest SBA financing andrequires only a small down paymentfrom the borrower. This structurehelps make it easier and moreaffordable for small businesses toaccess the funds they need to grow.LOW DOWN PAYMENT Borrower down payments as low as 10%.An additional 5% down is required for start-ups.An additional 5% down is required for a borrower's first Special-Purpose Propertyloan.LONG TERM, FIXED RATEA below-market, fixed rate on the SBA portion of the loan.10 years for equipment; 20 or 25 years for real estate.Longer amortization (up to 25 years).MORE INCLUSIVE FINANCINGFurniture and equipment can typically be included with a building purchase.Potential for start-up financing or projection-based expansion financing.FAST TURNAROUNDTypically between 45 and 60 days, depending on receipt of documentation.ROBUST BORROWING LIMITSThe per-project maximum for the SBA 504 portion of the loan is typically $5,000,000.That maximum increases to $5,500,000 per project for manufacturing or green projects.Bank Loan50%SBA Financing40%Borrower Down Payment10%Key Benefits

Land PurchaseBuilding PurchaseImprovementsConstructionEquipmentEligible ProjectsBusinesses must be for-profit, average less than $6.5million in profits after taxes in the last two fiscalyears, and have less than $20 million in tangible networth (with affiliates).The maximum 504 loan is $5 million in aggregateSBA loans or $5.5 million for manufacturing loansor green energy projects per project. There is noproject maximum size, as there is no limit on thebank portion of the loan.Real estate must be at least 51% occupied forexisting properties, and 60% for new constructionby an operating company with similar ownership.Businesses must be located in Missouri or theIllinois counties of Bond, Clinton, Jersey, Madison,Monroe, and St. Clair.Eligibility Requirements

Proud to be the St. Louisregion's top SBA lender.organizations impacted100% of the original loan must have been usedstrictly for the benefit of the small business.At least 75% of the original loan must have covered504-eligible expenses, including acquisition,construction, or improvement of fixed assets.The original debt must have been incurred at leastsix months before the 504 application date.The original loan must have no late payments over30 days within the last six months.The business must have been operating for at leasttwo years before the application date.The business must have maintained the sameownership during the two years before theapplication date.Small businesses must meet an occupancy residentrequirement of 51% at the time of application.Approved 504 refinanced loans must be fundedwithin six months of the approval date (timelysubmission of all required information is essential).Small businesses can often achieve substantial savings by refinancing conventionalloans or other SBA/government-backed loans with an SBA 504 loan. The lower interestrate of a 504 loan will typically offset any prepayment penalties.SBA 504 Refinance ProgramLower your monthly paymentEligibility RequirementsAccess cash for eligible business expenses, such as working capital.Obtain up to 90% loan-to-value financing with no cash injection required, providedtotal project costs stay within the 90% limit.Key BenefitsRankings compiled by the St. Louis Business Journal based on total SBA loan production in 2020, 2021, and 2023.