Preferred Lending Partners’ business financing programs are designed to grow your company and move your plans from the page to the real world. Preferred Lending specializes in heavy equipment, and commercial real estate financing through the SBA 504 program. United States Small Business Administration (SBA) 504 loans are designed to help small business owners who want to improve their operation by adding, acquiring, expanding, or constructing commercial real estate. The SBA 504 program offers a way for businesses to acquire property and expand their equity position. SBA 504 borrowers benefit from a lower down payment, lower interest rates, and a longer fixed rate term.

Preferred Lending Partners processes, approves, closes and services the loans. Funding is arranged by Preferred Lending Partners issuing a bond, and in all ways, Preferred Lending Partners is the direct lender for the SBA 504 loan program.

Your business needs may be met by the SBA 504 program. If you are unfamiliar with SBA 504 loans, take a moment to follow the links on this page. If you have questions, contact our office and one of our team members will be happy to walk you through the process.

Local business growth is vital to Colorado’s future and to the future of our nation. Our innovative commercial financing helps local business owners become tomorrow’s business leaders! Let’s work together to get you there.

It’s official: SBA-504 just got even better

President Obama signed the Small Business Jobs Act Sept. 27 that makes SBA-504 loans even more attractive to banks and borrowers.

The most immediate opportunity: Debt Refinancing

The small business has been in operation for more than two years.
The debt must be current and for a minimum of 1 year.
The refinancing project does not involve financing expansion of the business.
The debt being refinanced is “Qualified Debt.”
- Commercial loans (non-government debt)
- Debt has to be 2 years old prior to the date of application
- The debt refinance must be for the benefit of the business
- Substantially all (85% or more) of the proceeds of which must have been used for 504 eligible purposes to acquire, construct, or improve long-term fixed assets, such as real estate and equipment
- Financing of fees such as; prepayment penalties, appraisal costs, and other professional soft costs are eligible
The appraisal must substantiate the project and the appreciated value will be counted toward the equity requirement; i.e. "no additional cash required to refinance under our program."
The borrower’s 10% contribution may be satisfied by its equity in the eligible fixed asset(s) serving as collateral for the refinancing project or by the equity in any other fixed asset(s) that are acceptable to SBA as collateral for the refinancing project.
When the fixed asset is serving as collateral is a limited or special purpose property, Borrower will NOT be required to increase its contribution to 15% (as would be required in a regular 504 Project).
Job retention goals apply.
As it stands today the program will end September 27, 2012.
This refinancing program could run out of money, therefore re-appropriation of funding would be necessary.

Other good opportunities to be rolled out as SBA fine-tunes policy:

Increased Loan Maximum: 504 maximum loan size will permanently increased to $5 million ($5.5 million for manufacturers and energy loans)
First Mortgage Pooling program: Extends the first-mortgage pooling program two years (at least through Sept. 2012)
Alternative Size Standard: pending an alternative applicable to both 504 and 7(a), establishes a standard of maximum tangible net worth of $15 million and 2-year average net income after federal income tax of $5 million, which will apply to both programs.