Clyde Avenue Business Park: Home Clyde Avenue Business Park: Financing  

Clyde Avenue Business Park: Financing Options

Ownership has never been more attractive!

The SBA 7(a) Loan Program

Purpose: To finance the purchase of real estate, machinery and equipment, or inventory and accounts receivable

Loan Amount: $750,000 (actual loan may be greater)

Guarantee Percentage: up to 75%

Interest Rates: Set by Comerica SBA specialist (maximum loan maturities set by SBA policy)

Terms: Set by Comerica SBA specialist (maximum loan rates set by SBA policy)

Eligibility: SBA guarantee approval, personal guarantees of principals with 20% or more ownership required.

Restrictions: Certain types of business activities are excluded from SBA financing; check with a Comerica SBA specialist for details


The SBA 504 Loan Program

Purpose: Long-term financing for the acquisition/expansion of real estate, machinery and equipment. On projects requiring construction financing, refer to participating bank.

Guarantee Amounts: $50,000 minimum amount. Typical loan structure is usually:

  • 50% - Bank with first position on collateral
  • 40% - SBA debenture with second position on collateral
  • 10% - Owner equity

Terms:

  • Machinery and Equipment: 10 years
  • Real Estate: 20 years

Interest Rates: SBA offers a fixed rate, determined at the time of the debenture sale. Comerica's rate is based on the prevailing market conditions.

Fees:

  • Three percent (3%) processing fee on the SBA's portion - typically financed in the SBA debenture
  • Six tenths of one percent (.006 or .6%) annual servicing fee on the outstanding loan balance of the SBA's portion
  • Loan subject to legal fees by SBA
  • Loan is subject to prepayment penalties

Eligibility: Because it is a public agency using taxpayer funds, SBA will not guarantee loans to:

  • - Financial institutions
  • Gambling or speculative facilities
  • Real estate companies where properties are held for investment or sale purposes
  • Recreation facilities that are not open to the public
  • Not-for-profit organizations.

Also, certain operations, such as wholesaling, retailing and manufacturing are subject to size-standard criteria including annual sales volume and number of employees.

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A Development of: Sales Information: Financing Contact :
Ashley Mozart
The Mozart
Development Company
650.493.9000 x230 | Email

Cassidy Turley CPS
Colin Feichtmeir Lic. 01298061
408.615.3443 | Email
Brian McClenahan Lic. 01469279
408.615.3463 | Email

Joseph P. Baker
Comerica Bank
408.556.5290 | Email