Mon-Fri 8:00am-6:00pm    (512) 433-1175
Mon-Fri 8:00am-6:00pm    (512) 433-1175

Commercial Loans


We are not your competitor…we are your partner!  As the largest 504 Lender in Texas, we partner with banks through-out Texas on commercial loans ranging from $175,000 up to over $5.5 million.  We’ll coordinate the entire 504 Loan process and work to ensure everything goes smoothly for your client.

Bank Benefits

  • Reduced lending exposure with 50% loan-to-value
  • Manages commercial real estate concentration issues
  • Opens up lending availability
  • Maximizes middle market lending
  • High size limits and business size caps
  • Preserves working capital, which keeps cash in deposit accounts
  • Can refinance commercial mortgages with cash out for business expenses
  • Unique marketing opportunity
  • Finances heavy machinery and equipment
  • Attracts new borrowers
  • We are your partner, not your competitor…you keep your clients
  • The 504 Loan Program can be used multiple times

Key Points For Banks

The Bank’s Role in the 504

  • Provide the interim funding until the deed is recorded and set interim rate
  • Bank’s term must be at least 10-years with TxCDC 20- and 25-year bonds.  And the bank’s term must be at least 7-years with TxCDC’s 10-year bonds.
  • Bank gets first lien on all project assets
  • Advance is up to 95% of the appraised value on real estate (5% variance)
  • Size Standards:  a tangible net worth of less than $15 million and profits (after taxes) of less than $5 million (including affiliates)
  • Economic life of the asset to be financed needs to meet or exceed the loan term

Qualifying Projects:

Generally, any project involving the purchase, construction, or improvement of fixed assets is eligible. Examples include:
· Land and building acquisition
· Construction and renovation
· Purchase of heavy machinery or equipment
· Refinancing real estate and equipment
Reasonable contingencies (up to 10 percent), furniture and fixtures, and soft costs (such as professional fees and interest during construction) generally can be included. Investment and residential properties are not eligible.

Eligible Businesses:

· Business owner(s) must be a U.S. citizen or resident alien with a green card
· Any for-profit business
· Any business structure (Sole Proprietorship, Partnership, Corporation, LLC, LLP, etc.)
· Any type of legitimate business: manufacturing, wholesale, service, professional service, retail or agricultural
By SBA definition the business must be small. This generally means less than $15 million in net worth and less than $5 million in annual after tax profits.

Ineligible Businesses:

· Private restrictive clubs and speculative real estate investments
· Businesses primarily engaged in lending (i.e. banks, credit unions, finance companies)
· Insurance companies, although independent insurance agencies are eligible
· Offshore facilities
· Businesses that derive a significant portion of their revenue from speculative operations (i.e. commodity traders)
· Lobbyists
Businesses with more than 1/3 of their revenue from legal gambling

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