Loan Programs

The U.S. Small Business Administration (SBA) has certified GTCC to provide and service SBA 504 Fixed Asset Loans in Texas and to originate loans throughout the USA in cooperation with other certified development corporations. We give you access to long-term, fixed-rate financing for the purchase of real estate, construction and equipment acquisition. You may qualify for up to 90% financing through the SBA 504 program.

SBA 504 Program Benefits

  • Commercial real estate and equipment loans for small to mid-sized business owners
  • Low down payment – preserve working capital
  • 90% loan-to-cost financing of total project costs, including soft and closing costs
  • Below market, fixed interest rates for 20 years, no balloons
  • Terms of up to 20 years for real estate and 10 years for machinery and equipment
  • Financing for fixed assets: owner-occupied commercial real estate, machinery and equipment
  • Bottom line – preserve capital, maximize cash flow, and enjoy the best financing available for small business owners

GTCC Advantages

  • Fast answers – 24 hour pre-screening and SBA approval in just a few weeks
  • Expertise – our specialists have a proven track record
  • Highest cash-on-cash return financing available – our borrowers choose how to best utilize their capital
  • Peace of mind, not lender micro-management
  • Servicing officer provides single point of contact to make necessary reports for ongoing compliance

SBA 504 Basics

  • Must be a minimum of 51% owner-occupied
  • Typical loan structure – 10% owner, 50% lender, 40% GTCC/SBA
  • SBA loans available up to $5,000,000, and in some circumstances $5,500,000
  • Higher amounts, up to $5,500,000, may be available for small manufacturers who meet SBA requirements supporting green initiative public policy goals
  • Fully assumable loans
  • Financing available to real estate holding companies (typically LLCs) wishing to own the real estate separately and lease back to the borrower’s operating company
  • Preferred property types - offices, industrial, medical, flex, flagged hotel, and stand-alone  restaurant, retail, or daycare
  • May use for refinancing if debt has been in place for less than nine months
  • Additional refinancing may be available for expansion of an existing business, and will be further expanded in March or April
  • Not permitted for working capital, inventory, franchise fees, rolling stock, or business goodwill

Eligible Borrowers

  • Companies and affiliates with tangible business net worth not to exceed $15 million
  • Net profit of business after taxes not to exceed $5 million average during previous two years
  • Borrowers’ non-retirement liquidity (cash, stocks, and bonds) cannot exceed the total project cost
  • Not eligible – non-profits, public companies, speculative development, lending institutions,  gambling concerns and private clubs
  • Anyone with 20% ownership is a guarantor

Sample Loan Structure

 

Funding Source Percentage Amount
Lender/First Mortgage 50% $500,000
GTCC/SBA/Second Mortgage 40% $400,000
Owner/Equity (down payment) 10% $100,000
Total 100% $1,000,000