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is to facilitate the growth of small businesses and to stimulate economic development by providing lending solutions and advocacy services.
Formed in 1981, Nevada State Development Corporation (NSDC) is a non-profit organization that is authorized by the SBA to underwrite, process, fund, and service loans through the 504 Loan Program. We are the oldest, largest, and only statewide Certified Development Company (CDC) with Premier Certified Lender status in Nevada.
NSDC is also authorized to arrange SBA 504 loans in Mojave County, Arizona and the following counties in California: Modoc Plumas, Lassen, Sierra, Nevada, Placer, El Dorado, Alpine, Mono, Inyo, and San Bernardino. We are dedicated to offering financing solutions that help businesses grow and to providing unsurpassed service to our lending partners.
What is the 504 Loan Program?
The SBA 504 Loan Program assists small business owners purchase commercial real estate or equipment. Partnering with a bank, the SBA loan provides up to 90% financing at below market, fixed rates of interest. NSDC has a streamlined application process, which means less paperwork and fast approvals. Pre-qualification is also available to help business owners determine if a purchase is the right step.
How is a loan structured?
A typical purchase would be structured as follows:
Bank loan 50%
SBA 504 loan 40%
Borrower equity 10%*
*Single purpose buildings and start-up business are subject to additional borrower equity
What are the terms of the SBA loan?
- Maturity: 10 or 20 years. (The borrower selects the term.)
- Interest rate: Fixed for the life of the loan. View our current rates.
- Collateral: Second deed of trust on the property and personal guaranty of the owners.
What are the terms of the bank loan?
- Maturity: Must be at least 10 years for buildings and 7 years for equipment. Many lenders offer 20-25 year repayment options.
- Interest rate: To be negotiated with the bank. Many lenders offer both a fixed and variable rate option.
- Collateral: First deed of trust on the property plus any other required by the bank.
What assets can be financed?
- Existing buildings: Business must occupy at least 51% of the building (may include remodeling or expansion)
- New construction: Business must occupy at least 60% of the building
- Equipment: Must have a useful life of at least 10 years