With the 504, borrowers take advantage of a low interest rate, which is fixed for either 10-, 20- or 25-years.
In most cases, borrowers receive a 90% advance, which preserves working capital for day-to-day business expenses.
With the 504, borrowers do not have to concern themselves with saving the large amount of cash necessary for a balloon payment. This eliminates the need for refinancing, additional appraisals and deterioration in property values.
Borrowers lock in a low fixed interest rate, which gives them predictable payments and allows them to easily forecast for future years. So there’s no inflationary pressures and interest rate increases to worry about.
The 504 finances total project costs, including not just the costs for land, existing building, hard construction and equipment, but also soft costs like furniture, fixtures, closing costs and professional fees.
An entrepreneur for 45 years, Paul Tovar founded TxCDC in 1981. In his role as chairman of the board and CDC Manager, Paul assists in developing new financial resources, marketing TxCDC’ s financial programs and representing the company to private and public entities.
Blyth has been with TxCDC for fifteen years. In her current position at President, she provides training to lenders and conducts outreach to the financial and business community to increase awareness of TxCDC and the SBA 504 lending program.
As Chief Credit Officer and Senior Vice President of TxCDC, Oscar is responsible for TxCDC’ s quality control process through supervising all loan packaging and processing services, including all financial analysis and submissions to the SBA Loan Processing Center.
Fernando Rojas brings a special skillset to his position as TxCDC’s credit analyst and underwriter. The Central Texas resident is accomplished at completing credit and financial analyses and has a deep interest in architectural engineering, which helps him understand construction schematics and processes.
Dr. Luis Benavides had a dream – to join with six family practice physicians and create a healthcare facility to serve the Laredo community. Working with Texas Certified Development Company (TxCDC) consultant Armando Ruiz, Dr. Benavides and his partners secured a Small Business Administration 504 loan and made their dream — Laredo Premier Healthcare – a reality. The medical facility served its first patients in October 2016.
The SBA 504 loan covers Pla-Mor’s construction, equipment and attractions. The 47,000-square-foot building, which is slated to open in spring 2018, will include 24 lanes of bowling, a state-of-the-art arcade, a two-level laser tag area, four climbing walls, a ropes course with a 70-foot zip line, virtual golf and soccer, and fine dining. When open, the facility will provide jobs for 85 area residents, bringing the company’s total payroll to more than 120 employees.
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