The Business Lending Center

504 Loan Application

The Business Lending Center is the trade name for SCEDD Development Company, a subsidiary of the Southern Colorado Economic Development District. The Business Lending Center is a non-profit organization which is licensed and regulated by the Small Business Administration (SBA) as a “Certified Development Company” or “CDC”.  As a CDC, we are authorized to package, close, and service 504 loans throughout Colorado. The Business Lending Center works hand-in-hand with the borrower and the banker to develop a financing package that works best for your small business.

SBA 504 Loans

The 504 Loan program was created in 1986 by Congress to help small businesses in acquiring fixed assets through long-term financing for business start-up or expansion, and to provide incentives to private lenders to participate in financing business expansion.

How does the 504 program work? 

The bank works with the Business Lending Center to share the financing and risk in an approved project.  The bank provides a loan for half the project cost and acquires the first lien on the property; the Business Lending Center provides 35% to 40% of the project financing and takes a second lien on the property.  

Eligible Use of Funds

• Purchase land/construct new building(s)

• Purchase/renovate/expand existing building(s)

• Purchase machinery and equipment

• Professional fees (appraisals, environmental studies, etc.)

• Interim financing costs

• Contingency reserve not to exceed 10% of construction costs

Benefits of the 504 program

• Long term loan (twenty or ten years) on fixed assets

• Low fixed interest rate

• 85-90% financing of total project costs

• Low closing costs (included in the loan)

• Low borrowers injection

• SBA loans are assumable

For additional information and guidelines for the SBA 504 loan program, please contact Kelly Taylor.

The complete 504 loan application packet can be downloaded here.

For information on the SBA 7(a) loan program click here.

This website is currently under construction. While some information is provided in the links, additional information can be obtained by contacting our office.

Southern Colorado Economic Development District (SCEDD)
1104 N. Main St.
Pueblo, CO  81003

(719) 545-8680 - (719) 545-9908 Fax

©SCEDD 2011