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New SBA loan program aids Calif. manufacturers

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The Certified Development Company, CDC, Small Business Finance announced Wednesday that a new small business administration loan program is now available for California manufacturers to finance long-term fixed assets, including land, buildings and equipment.

The new program, made available through the successful SBA 504 loan program, provides access to below-market financing at a higher level than previously authorized. Manufacturers can finance properties up to $10 million, twice that available to other types of businesses.

A SBA 504 loan means a bank or other financial lender provides 50 percent of the total financing package, while a CDC arranges debenture financing for 40 percent and the business owner contributes a 10 percent down payment.

“The new SBA-loan levels for manufacturers mean that business owners can now purchase or expand their facilities and generate new jobs with a very low down payment and very attractive financing,” said Kurt Chilcott, president of CDC Small Business Finance, in a written statement.

In 2004, CDC Small Business Finance assisted more than 570 California businesses with SBA 504 loans, resulting in more than $1 billion dollars in investment and thousands of new jobs.

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