SBA 504 Loan Program

Current and prospective business owners in Southeastern Idaho have an ally in their quest for success. The Small Business Administration has designed the 504 Loan to benefit people who are currently in business or potential owners of small businesses. Loans are available to build new buildings or acquire and remodel existing structures. Proceeds can also be used to purchase and install new equipment.

Some of the benefits of a 504 Loan are:

• Low Down Payments - As little as 10%
• Flexible Terms - Up to 20 Yrs.
• Below Market Fixed Interest Rates

With the SBA 504 Loan, a business owner generally provides between 10 and 20 percent of the project cost. The remainder of the project financing is provided by a bank or other private sector lenders and Eastern Idaho Development Corporation. Under the SBA 504 Program, a bank or financial institution will lend 40 to 50 percent of the project cost and Eastern Idaho Development Corporation will lend up to 40 percent. The Eastern Idaho Development Corporation loan cannot exceed $1.5 million, as designated by the Small Business Administration. However, there is no maximum project size under the SBA 504 Program since there is no limit on the bank's first mortgage or private sector loan.