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SBA-504
Loan
For: Fixed
Assets
Only |
Bank funds 50%. NRDA/SBA funds 40%. Borrower injects 10% (5%-10% higher for start-ups & limited use assets). SBA portion may be as highs as $5,000,000, or $5,500,000 for manufacturing facility. |
504 is very popular for real estate. Offers low down payments & fixed rates, terms up to 20 years on the portion funded by SBA. Advantages: Bank receives first mortgage; borrower can put less down, thus freeing up working capital; protects from rate increases; makes it easier for bank to loan more to business as it grows. |
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USDA
IRP & RBEG Loans
For: Fixed Assets, Working Capital & Inventory |
NRDA is the lender. Makes loans from $25,000 to $150,000 from an internal pool. Terms are up to 20 years. Collateral & personal guarantees required of all principals. Fixed interest rates. |
NRDA has a pool of over $4,100,000 from the Department of Agriculture. Can be used to finance 75% of a project, prefer leveraging with other sources. Used to leverage bank loans or can be made without bank. |
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Golden LEAF Aerospace/Defense Ventures Fund |
NRDA is the lender, utilizing Golden LEAF Foundation funding. Loans of up to $225,000. can be used for expansion, real estate, M + E or working capital. Rates subject to market conditions. |
Program is designed for any NC company currently engaged in or interested in expanding into defense or aerospace related manufacturing or service businesses. |
