News Contact About Meet the team Board of Directors Jeff Sceranka President 909.792.3803 x 100 C: 909.499.9837 Lucas Sceranka SBA Relationship Officer 909.792.3803 x 102 C: 909.635.7290 Brianne Sceranka Closing Officer 909.792.3803 x 104 David Poole Servicing Officer 909.792.3803 x 103 504 Program The SBA 504 loan is a fixed rate, low down payment, long term loan for owner  occupied, for profit businesses. It is designed to preserve working capital,  stabilize costs, and enhance economic development. Financing structure of a typical $1 million project Eligibility What can an SBA 504 loan be used for? The purchase of land, including existing buildings The purchase of improvements, including grading,  street improvements, utilities, parking lots and landscaping The construction of new facilities or modernizing,  renovating or converting existing facilities The purchase of long-term machinery and equipment Why is this financing special? As little as 10% down Approval within two weeks Secondary collateral is rarely required Long term fixed rates (10, 20 and 25 year terms) Most fees can be included in the financing which means fewer out of pocket costs Our loan is assumable We are a one stop shop: We package the loan for free We make all the copies We can find the bank 504 vs 7a There are several differences in what the loans can be used for and the source of loan funds. SBA 504 loans are for real estate, machinery and equipment only. Loan Servicing How do I check my balance? How do I payoff my loan? How much interest have I paid? How can I change my account for automatic debit payment? If you want to change the account that is automatically debited for your monthly  payments  please submit a new ACH Form and a voided check to David Poole For any questions about your existing loan, please contact David Poole at:, (909) 792-3803 x 103, or fax to (909)792-3813  Mail to: 300 E. State St., Ste 230M, Redlands, CA 92373 #top 504 Program Eligibility 504 vs 7a Loan Servicing FAQ #loan_504vs7a #David_Poole_contact #faq Top Top Top Top Submitting required property insurance Submitting current financials Current financial information is required to be submitted on an annual basis.  Please  submit them to David Poole Changing the structure of the loan Any Changes to the structure of your loan must have prior written consent from SBA.    Examples of this are :  Change of Form      Assumption      Change of Ownership      Change of Management FAQ Top What is an SBA 504 loan? What is a CDC? Who is eligible? With the 504 loan, you get a fixed rate of interest and terms of 25, 20 or 10 years for  real estate and 10 years for equipment, with level debt payments. Interest rates are  approximately half a point over the current five and 10 year US Treasury issues. What are the terms? Is an applicant with personal liquidity disqualified from receiving funds  through the 504 program? No. The Personal Resource Test was eliminated as of April 21, 2014. What are the advantages for a financial institution? The financial institution has first lien position with a low loan-to-value, minimizing  the collateral risk and they get to set their own rate and fees. Can Enterprise Funding Corporation help me get through the loan process? Absolutely! Our staff of experts can work with you step by step through the loan process. How long does the process take? How do I know if I qualify for a particular loan? Call us! We’ll work with you on the initial intake to go over your needs in relation  to the type of loan that would be applicable to you. Top What kind of help can I get after I get the loan? EFC has a dedicated staff that can help you in your business. We are committed to  helping you become or stay successful. We are available to you before, during, and after  the process. Do I need a business plan for my start-up business? Yes, every business should have a business plan. A business plan is required by any  business lender. EFC can also refer you to the local SBDC who can help you complete  your business plan. Can I borrow all of my project needs from the SBA 504 Loan Program? Yes, you can also include soft costs that are not usually part of conventional commercial  mortgage loans available from banks or financial institutions. My banker said my business’ cash flow can support the expansion  project, but I don’t have the 25% equity to make the deal work, how  can the 504 Loan Program help? The equity can be cash, borrowed or a gift to the business. In some cases, where you  already own the building and want to remodel or expand it, the equity in the building  can satisfy the program’s equity requirement. What if I do not have a bank contact? EFC can introduce to any number of bankers or other commercial lenders who have a  proven track record using the SBA 504 Loan Program.  EFC makes sure you establish a  relationship with someone who can meet your project and business banking needs. Are there any 504 fees? Yes, there are fees. The 504 Loan program allows you to finance the fees so you can  save cash for your business’ operating needs.   EFC’s fees are the lowest in the industry. Is it true an SBA 504 loan requires a lot of paperwork and that it takes  a long time to get approval for an SBA 504 loan? Will using the SBA 504 Loan Program delay the closing of the purchase  of real estate or machinery and equipment? Once your SBA 504 loan is approved in writing by the SBA the lender participating in  the project may fully fund the purchase of the real estate and/or machinery and  equipment. What are the loan amounts available? A CDC financed project can be of any size, but the SBA backed portion of the loan  package is limited to 40% or 5.5 million, whichever is less.  The minimum debenture is $50,000 with typical projects ranging in size from $125,000 to $5 million. Is the applicant automatically ineligible if they have had a bankruptcy? NO…If the bankruptcy was not recent and there is a satisfactory explanation for it, the  applicant may be eligible for a 504 loan. Can seller subordinated financing be used as the equity portion of the  project? Are there tax advantages to me if I own the real estate personally and  lease it back to my company? Most accountants say yes. However, anyone who owns 20 percent or more of either  the real estate to be leased back or the operating company will be required to sign a  guarantee for the entire SBA loan. If a service station/food store sells lottery tickets, are they eligible due  to gambling restrictions? As long as the gambling revenues represent less than 30 percent of the total  revenues, the business is eligible for an SBA loan. Can I contribute land that I purchased previously to my building  construction project as equity? Is the SBA 504 portion of the loan assumable? Is it possible to purchase both real estate and equipment at the same  time using an SBA 504 loan? Can 504 loan proceeds be used to purchase stock? Can the 504 program provide start-up financing? Can a 504 project involve more than one site?

Vicki Cesario – Underwriter - - 909.792.3803 x 106

Our portion of the financing can be up to $5.5 million

Business Type

The business must be for profit. Eligible business types include:


Office Suites

Retail operations

Manufacturing operations

Service Operations

Wholesale Operations

Trailer Parks(R.V. Parks)


Self Storage facilities

Residential Care Facilities such as nursing homes

Equipment rental businesses

Antique Malls


Equestrian centers

Independent Contractor agents of insurance companies


For existing businesses…

The business must have an average net profit after taxes of less than $5 million per year over the past two years. $6.25 million if the business is in a labor surplus area.


For purchase or renovation of existing Buildings the business must occupy at least 51% of building space

For new construction and occupancy the business must immediately occupy 60% of the new building


Personal guarantees are required for anyone who owns 20% or more of the operating company

Contact us today and we will help you determine whether your business is eligible.

Is there a pre-payment penalty for the SBA 504? Does SBA 504 allow debt refinancing? Yes. Debt refinancing is allowed under the SBA 504 loan program under certain  circumstances. What’s the difference between the SBA 504 and the SBA 7a loan? Top To refinance existing debt