TierPoint, the premier carrier-class and carrier-neutral Data Center services provider in the Inland Northwest, today announced a new $8.2 million "green" data center project, known as TierPoint 3. Funding
for the project was secured through debt financing from Bank of America/Merrill Lynch ($4.1 million) and Evergreen Business Capital and the Small Business Administration (SBA) ($3.1 million), in addition to a $1.0 million infusion by TierPoint. Source: Craig Brandvold, TierPoint LLC
The National Association of Development Companies (NADCO) is the trade association for the nation's Certified Development Companies (CDCs). Our members are non-profit organizations that have been certified by the U.S. Small Business Administration (SBA) to provide financing to small businesses through the Certified Development Company Economic Development Loan Program also known as the SBA 504 loan program.
The SBA 504 loan program was created for two reasons: (1) To provide financing to entrepreneurs who are ready to expand and need funds to purchase real estate or capital assets, and (2) for the purpose of stimulating economic development through job creation, business growth and increased tax revenues.
A simple way to describe an SBA 504 loan is as a mortgage for small business owners to "purchase homes"for their businesses. Visit SBA 504 Loansto find basic information on SBA 504 loans and how one can work for you!
Over 100,000 entrepreneurs have obtained SBA 504 loans over the past 25 years and we plan to support 100,000 more.
SBA 504 loans allow business owners to buy, build or renovate commercial real estate. Financing options include the purchase and/or renovation of an existing building; the purchase of land and construction of a new building; and also the purchase of expensive equipment or machinery that requires long-term financing.
Similar to a residential mortgage, an SBA 504 loan is for a long term (either 10 or 20 years) and the interest rate is fixed for the term of the loan. Interest rates are competitive and usually lower than prime.
When you are ready to see if an SBA 504 loan is right for you, start by finding the CDC in your area by browsing our member directory link: Find a Member. Then, give your bank a call to see if they would like to partner with the CDC to structure your loan.
WHAT'S NEW....
Registration is now OPEN for Fall Regional Meetings & Fall 504 Training
The article appeared in the May 2010 issue of the OCC's publication "Insights" and is an update of the article originally published in February 2006. It provides an excellent overview of the SBA 504 Loan Program.
New Report from SBA - Office of Credit & Risk Management
Take a moment to click on our SBA 504 Borrower Showcase project below! We highlighted an SBA 504 borrower from each state, the District of Columbia and Puerto Rico to provide a snapshot of some of the success stories that were made possible by SBA 504 loans.
NADCO Testifies on Capitol Hill
Sally Robertson, NADCO Regional III Director (Business Finance Group) provided testimony February 26, 2010 before a joint hearing of the House Small Business Committee and the Committee on Financial Services entitled, "Condition of Small Business and Commercial Real Estate Lending in Local Markets."
Certified Development Company - Capability Study - June 2009
NADCO conducted a study in June 2009 to gather information on the scope of programs and services offered by Certified Development Companies in addition to providing SBA 504 loans to small businesses. Approximately 55% of CDCs participated in the study, and the information gathered on the range of financing programs and services offered is impressive.
NADCO found that CDCs participate in a stunning number of state, local, federal and self-funded financing programs. CDCs provided a staggering $42 billion in direct financing through the programs they administered . When you factor in the other funding partners in these projects, the total dollar amount for projects financed through CDCs, the total is over $118 billion to 128,155 small businesses.
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