504 LOAN PROGRAM
At Miel Financial we are specialized in Commercial Real Estate Financing and in providing long term permanent financing to small businesses. Our loans, including the 504 Loan Program, are made through the Small Business Administration (SBA) guaranteed loan programs. A local Community Development Corporation (CDC) administers the loan program on behalf of the SBA.
Use of Proceeds
Real estate acquisition or construction - up to 85% hotel financing available
Refinance up to 65% loan to appraised value
Rates
October 2009 SBA fixed base rate is 6.19%
October 2009 504 rate 5.25%
SBA/CDC rates are approximately 6.67%
Fixed or floating rates available
- Financing available on projects up to $6,000,000
- The bank typically provides a first mortgage of up to 50% of the total project cost
- This loan can range from $500,000 to $4,000,000
- The SBA, through a Certified Development Corporation (CDC) provides up to
- 35% of total project cost in a second lien position
- This loan can range from $300,000 to $2,000,000
First Mortgage - up to 25-year term on your purchase with fixed and variable interest rates available.
Second Mortgage - up to 20-year term for real estate
Fixed rate is determined at SBA guaranteed 504 debenture sale
Fees
First Mortgage - fees are always market competitive.
Second Mortgage - approximately 2.15% + .5% 1st mortgage loan fee and is financed in the loan
Fees also include customary closing costs, such as appraisal & environmental report, construction loan fees (if applicable), and bridge loans. The fees are all included in the loan as eligible project costs.