SBA 504 Loan

The 504 Loan Program is the first national financing program to recognize contributions of healthy, expanding small and medium-sized businesses towards job growth in the U.S. and the financing is specifically designed to meet their needs.

Certified Development Companies (CDC), organized to assist this business segment, are catalysts to making the financing happen. They have professional staffs who work directly with businesses to develop a financing package that meets program guidelines and the credit criteria of the business. The CDC's role is to package, process, close and service the 504 Loan Program.

Debentures (bonds) are then issued by the CDCs and sold in the private bond market to fund the 504 portion of the financing. These bonds are fully guaranteed by the U.S. Small Business Administration.

The Lake County Small Business Assistance Corp. is a Certified Development Company authorized to process U.S. Small Business Administration 504 loans. The Lake County Small Business Assistance Corp. contracts with the Lake County Port Authority to perform this service.

The 504 Loan Program is a long-term financing tool for economic development within our community. The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land , buildings and equipment. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the Lake County Small Business Assistance Corporation and administered by the Lake County Port Authority (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.

All inquiries should be directed to:

Martin Gareau
440-357-2290 x229
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