W E L C O M E HOUSTON- GALVESTON AREA Local Development Corporation
What is H-GAC? • Regional planning organization • Volunteer board of local governments • Solve region-wide issues Transportation Environment Public Safety Aging Citizens Cooperative Purchasing Emergency/ Disaster Planning Workforce Solutions Business and Economic Development
SBA 504 Loans HOUSTON- GALVESTON AREA The Small Business Local Development Corporation Administration (SBA) 504 Loan Program partners with We offer low-cost, fixed-rate loans to banks to offer government- support small business creation and expansion, economic development, guaranteed loans for small and job growth. businesses.
SBA 504 Major Characteristics Loan Local Development Corporation + Up to $5,000,000 contributed by Local Development Corporation Banking Partner + Bank contributes up to $5,000,000 or Borrower = more Project!!! Borrower investment 10-20%
SBA 504 Advantages for Borrowers Loan • Long-term, fixed rates – 10 or 20 year terms • Lower equity injections – as low as 10% • No project maximums! • Eligible soft costs may be rolled into project financing • Debt refinancing opportunities available • Start-ups are welcome to apply! • Government-guaranteed loans
SBA 504 Basic Eligibility for Borrowers Loan • Most for-profit, owner-occupied small business • Net worth less than $15 million • Average net income after tax (previous 2 yrs.) of no more than $5.0 million (including affiliates) • Manufacturers with 500 or less employees (including affiliates) • Evidence that credit is not available elsewhere (i.e. decline letter from bank)
SBA 504 Eligible Use of Funds Loan Land Purchase of Existing Buildings New Construction Fixed Assets from Business Acquisition Building Expansion/Renovation Long Term Equipment Ineligible Use of Funds Professional Fees Lenders Interim Points & Interest X Working Capital Debt Refinance X Goodwill Assets from Franchise Fees Business Acquisition X Tenant Improvements X Passive Real Estate Development
Typical Structure SBA 504 Loan
SBA 504 Sample SBA 504 Loan Projects Loan Office Condos Medical and Dental Facilities Retail and Convenience Stores Suppliers/Wholesalers Restaurants Hotels Franchises Recreational Facilities/Clubs Manufacturers Child/Adult/Pet Daycare Animal Hospitals
Revolving Loan HOUSTON- GALVESTON AREA Economic Development Local Development Corporation Administration funds targeted towards disaster We offer low-cost, fixed-rate loans to assistance and economic support small business creation and expansion, economic development, infusion. and job growth.
Revolving Major Characteristics Loan • Loan amount is generally $30,000 to $500,000 • Loan maturity - up to 10 years • The minimum interest rate is 4% and is fixed at closing • Shorter processing time!
Revolving Additional Information Loan Eligible Use of Loan Proceeds Construction, building repairs and Ineligible Use of Loan Proceeds improvements X Debt refinance Purchase equipment, furniture, and X Business acquisition X Speculative and investment businesses inventory Closing costs WORKING CAPITAL!!! Collateral Borrowers Equity Injection All available collateral must be pledged to Minimum equity injection is 10% of secure the loan on a liquidation basis. total project cost. Some projects All business assets financed as part of the may require more equity. project will be secured as collateral. This includes, but is not limited to, commercial land and building, equipment, furniture, inventory, and accounts receivable. All other available business and personal assets will be secured as needed. Personal guarantees will be secured.
Other Loans HOUSTON- GALVESTON AREA Additional loan opportunities Local Development Corporation to support small business, community and government We offer low-cost, fixed-rate loans to development projects. support small business creation and expansion, economic development, and job growth.
Community SBA 7A Microloans USDA Other Loans Investment & Enhancement Grants • Loans up to • USDA-backed • Small grants to local • Small loans to help Additional loan opportunities financing programs for $5,000,000 businesses access governments rural municipalities and • Includes working quick working capital to support small business, • Bringing Back Main unincorporated capital and leasehold to make small Street! communities to community and government improvements purchases and • Revitalize downtown improve or restore • Variable rates improvements. development projects. water, storm water, areas wastewater or • Beautify public community structures, spaces systems or facilities. • 40 year terms
THANK YOU Isaac Perez Senior Business Developer Isaac.Perez@h-gac.com 832-681-2654 Contact Us H G A L D C 855-364-2516 A Licensed Texas Certified www.hgaldc.com Development Company loans@h-gac.com https://www.facebook.com/hgaldc/ https://www.linkedin.com/company/hgaldc/
Recommend
More recommend
