Greater Eastern Oregon Development Corporation is the

Premier CDC in Eastern Oregon !

 Greater Eastern Development Corporation has established a solid reputation among small business owners, bankers, and real estate brokers for dependability and efficiency in developing financing packages that meet the needs of small, growing businesses. GEODC has a wide selection of loan programs plus over two decades of personalized customer service that sets the standard for the industry. We can help you get the best loan available for your commercial property through the SBA 504 fixed asset financing program.  

 

Greater Eastern Development Corporation assists borrowers by helping to assemble loan packages, reviewing credit information, performing loan analysis, submitting applications, and locating competitive lenders interested in making you an SBA loan. We do the work while you continue to run your business. And we do not get paid unless your loan gets approved. To find out more information on our loans see below, then contact Greater Eastern Development Corporation to see how easy we can make it for you! 

The SBA 504 Loan---A Fixed Rate Commercial Real Estate Loan With Only 10% Down*  

 

The 504 Loan Program allows small business owners to purchase an industrial or commercial building at below-market interest rates with only a ten percent down payment or equity injection. The loan proceeds may be used to purchase or remodel an existing building or to construct a new facility. In addition, the program can be used to purchase new or used equipment.  Refinancing of existing loans is not permitted except to take out financing on property acquired within last nine months with interim financing.

 

How Much Can I Borrow?  

 

Up to 90% of the total project cost or appraised value of the property, whichever is less. There is no minimum on the total project size.

 

Amount of 504 LoanThe CDC can lend you up to 40% of the project cost with a dollar cap of $1,500,000. CDC can exceed $1,500,000 and goes up to $2,000,000 of SBA 504 financing under the following conditions: 

 

• the project will help revitalize a business community with a written revitalization plan or

• the project will help your company to expand its exporting or 

• your company is 51% or more minority, woman or veteran owned or

• you are locating in a rural area or

• the project will increase productivity and competitiveness by retooling, modernization or assistance in competing with imports or

• your business was affected by federal budget cutbacks (such as defense downsizing).

• The 504 Loan cap can increase to $4,000,000.00 if the project qualifies as a small manufacturing borrower.

   Typical Structure:  

 

The bank makes a loan in the first trust deed position for 50% of the total project and with the SBA’s guarantee. GEODC issues the second trust deed position for 40% of the total project loan packaging is handled by the GEODC. Borrower injects 10% of total project.  

 

50-40-10 Loan Structure  

What are the Terms, Rates and Fees?  

 

The bank portion is typically amortized over 25 years with call provision from 10 years to fully amortized loans. SBA 504 loans are either 20 year or 10 year loans depending on the majority use of funds.

 

How does my business qualify?  

 

Most small businesses meet one or more of the eligibility requirements:  

 

• Job Creation,  
• Manufacturing,  
• Export Product, 
• Minority owned, 
• Competitive Advantage,  
• Woman owned, and  
• Veteran owned.  

The business's net-worth cannot exceed $7 million, and the after-tax net profit for the last two years may not exceed $2.5 million.

SBA 504 is a community lending program designed to improve the locality. Eligibility requires either:

1) Job creation or retention (one job per every $50,000 borrowed from CDC under SBA 504) (Counties in Eastern Oregon, due to distressed classification, are not required to meet this condition)  

 

OR

2) One of the following public policy goals to:

• Revitalize a business district of a community with a written revitalization or development plan  
• Expand exports  
• Expand minority business development (owned 51% or more by minority business person)  
• Change necessitated by federal budget cutbacks  
• Change required by mandated standard re health, safety, environment  
• Increase productivity & competitiveness (retooling, robotics, or modernization)  
• Expand woman-owned business development  
• Expand veteran-owned business development  

One of the following community development goals to:

• Help to improve, diversify or stabilize the economy of the locality  
• Stimulate other business development in the community  
• Bring new income into the community  
• Assist manufacturing firms  
• Assist businesses in a labor surplus area.  

SBA 504 is not a real estate investment tool. It exists to help the community by helping small business have an impact on the community-by creating jobs or in other ways benefiting the community. 

Is it Difficult to Apply?  

 

Not at all. When applying for an SBA loan - as with any loan - you are asked to fill out a standardized application and provide specific documentation. At GEODC, we provide a checklist to simplify the process, will work with your accountant, and do all of the analysis, packaging, and SBA interfacing for you. Our role is to keep the process easy for our borrowers.  

 

Download our loan application here. 

 

First Step to getting your loan  

 

We will work with your current bank or help you identify a lender to participate in the 1^st trust deed portion of your financing. To speak with a loan officer in more detail, submit some brief information on our contact us page inquiry or call (541) 276-6745 in Pendleton.

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HOW A TYPICAL 504 DEBENTURE LOAN IS STRUCTURED     Purchase of Land And Building       Bank Financing  50% $500,000   GEODC Debenture 40% $400,000    Company Cash Down  10%  $100,000  TOTAL. 100% $1,000,000            Sample of a 504 Loan  USE OF PROCEEDS     Land and Building  900,000  Improvements  $80,000  Soft Cost:    Appraisal/Environment  $3,000  Bank Points/Interest  $12,000  Escrow & Title  $5,000      Total Soft Costs  $20,000        Total Project Costs $1,000,000    ..........    FINANCE STRUCTURE    SBA 504 Loan     Bank 1st TD Loan  50%  $500,000  Net Debenture Proceeds  40%  $400,000  Borrower  10%  $100,000          Total Project Cost  100%  $1,000,000       Bank Interim Loan    400,000  Reserve Account Fee (0.5%)    2,000  GEODC Processing Fee (1.5%)    6,000  Funding Fee (0.25%)    1,000  Legal Closing Fees    1,100 Underwriting Fee (0.50%)    2,065           Balance to Borrower    835         Gross Debenture    413,000  Borrower is responsible for title fees associated with the 504 debenture.

 

 

*Interest rate subject to change.

 

 

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