The 504 Loan Program allows small business owners to purchase an industrial or commercial building at below-market interest rates with a minimum of ten percent down payment or equity injection. The loan proceeds may be used to purchase or remodel an existing building, construct a new facility or to purchase equipment with a minimum economic useful life of 10 years.
The 504 loan is structured so a bank loans 50% of the total project; then a Certified Development Company (CDC) issues a second loan for 40% of the total project. The borrower contributes 10%. You can ask your bank to fund the 50% or the CDC can find a lender.
CDCs that loan in your area include: