SBA 504 Loan Program
Cascade Capital Corporation is accredited by the U.S. Small Business Administration as a certified development company providing SBA 504 financing primarily throughout Northeast Ohio. Cascade Capital Corporation is proud to offer the SBA 504 Program to growing companies that can take advantage of the Program’s many benefits. Please refer to the following key questions and answers providing important 504 Program information to both potential Program users and prospective commercial lending partners.

What are the primary advantages of using the SBA 504 Program for major fixed asset acquisition and/or expansion projects?

  • Up to 90% project financing is provided.
  • Lower borrower down payment – usually only 10% is required.
  • 20-year fixed interest rate; interest rate is substantially below market.
  • Fast loan approval

What is the typical financing structure on projects featuring SBA 504 financing?

  • 50% is funded by a commercial bank.
  • 40% is funded by Cascade Capital through the SBA 504.
  • 10% is required as down payment (equity) by the borrower.
  • 100% Total Project Costs

Are there any circumstances where the requirement for a borrower down payment exceeds 10%?

There are two circumstances in which a business borrower needs to provide more than 10% equity. If a company has been in business less than two years or a company’s new operating facility has only a limited or “singular” business purpose usage (such as a car wash, movie theatre or motel). If either of these circumstances exist, the borrower must contribute 15% direct equity. If both of these circumstances exist simultaneously, the borrower must contribute 20% direct equity. SBA 504e 35% if 15% equity required; 30% if 20% equity required.

Does the SBA 504 require any additional project security beyond the second mortgage or lien on project assets?

Anyone owning at least 20% of the project borrowing entity and/or operating company must personally guarantee the SBA 504.

What are maximum business size standards for SBA 504 participation?

A business borrower, combined with any affiliates, cannot have net worth in excess of $15 million and/or maximum average net profits cannot exceed $5 million average over the past two fiscal years.

What are the job creation/retention standards?

A business borrower must create or retain one job per $65,000 of SBA 504 funds borrowed within a two-year period of SBA 504 loan closing. Public Policy projects do not apply. Manufacturing companies must create or retain one job per $100,000 of SBA 504 funds borrowed.

What is the usual timeframe for SBA 504 approval?

Upon receipt of a completed SBA 504 loan package, Cascade Capital expedites your approval in 2-3 weeks.

What happens after SBA 504 loan approval?

The borrower receives the Authorization for Debenture Guarantee (commitment letter) and interim/construction funding for 90% of the project amount is provided by the bank lending partner. Upon completion of the project, Cascade Capital Corporation is notified and SBA 504 loan closing begins.

How do I get started?

  • Down load Cascade Capital Corporation SBA 504 Application Package from APPLICATIONS AND FORMS and provide the requested materials from the SBA 504 program check list.
Cascade Capital Corporation, I Cascade Plaza, 18th floor, Akron, OH 44308
Phone: 330 379-3160 Fax: 330 761-0307
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