Our Goal: To foster economic development and assist businesses in creating and retaining jobs

SBA 504 FORMS

• SBA 504 Loan Application
• Statement of Personal History - SBA Form 912
• Personal Financial Statement - SBA Form 413
• SBA 504 Fee and Deposit Agreement

ABOUT THE SBA 504 LOAN PACKAGE

Big Sky Economic Development Corporation [Big Sky EDC] is accredited by the US Small Business Administration (SBA) as a Certified Development Corporation (CDC) for the State of Montana.

The SBA 504 Development Company loan program is a long-term financing tool used by eligible small businesses. The program provides long-term, fixed rate financing for major fixed assets, such as land and buildings.

The typical structure for an SBA 504 loan is 50% of the project costs financed through a private lender having a senior position on the collateral, 40% of the project costs financed with SBA through a Certified Development Company (Big Sky EDC ) having a junior lien position on the collateral and at least a 10% owner equity contribution. The maximum SBA portion of the loan is $1.5 million, but under certain circumstances could be as high as $2.0 million. Eligible manufacturers may receive up to $4.0 million.

It's A Good Deal

For the BORROWERS - Conserve CASH FLOW

• Low down payment - typically 10%
• Conserve cash flow for operations
• Competitive, Fixed, Long-term rate
• Yellowstone Development tailors the financial package to the business and the program guidelines

For LENDERS - LOW RISK

• Low Loan to Value - secure collateral position
• First Lien Position, SBA takes subordinate position
• Yellowstone Development handles the paperwork to SBA and services the SBA loan
• Lender sets own rates

Big Sky EDC - MAKES IT EASY

• Works directly with the client
• Packages, processes, closes and services the SBA 504 Loan
• Utilizes job creation to define loan size for SBA portion

SBA 504 Eligible Uses Include:

• Purchase of land & improvements. Construction of new facilities or modernizing, renovation or conversion of existing structures. Company must occupy 60% of new and 51% of existing buildings.
• Machinery and equipment with a 10-year minimum useful life.

SBA 504 is permanent financing - not used for construction or interim lending

Rate & Terms

• Fixed 20-year rate on the SBA 504 portion is tied to the 10-year Treasury bond rate with a spread of approximately 2%.
• Private lender sets own rates and fees.
• Loans are 10 or 20 years.
• RE = 20 year note   Equipment only = 10 year note

Fees & Payments

• All SBA 504 loan fees are added to the loan amount and amortized over the loan term.
• One time processing fee - approximately 2.15% of SBA's portion
• Loan closing fees - approximately $2,500
• Ongoing service fee included in the effective full-term rate

ADDITIONAL PROGRAMS FROM YELLOWSTONE DEVELOPMENT

Big Sky EDC Revolving Loan Fund

For the Borrower

• Funds available for fixed assets, inventory, working capital
• Low origination fees
• Competitive fixed five-year interest rate

Lenders First Lien Position

• Existing businesses - with operating history

Yellowstone County Tax Incentive Programs

• Remodeling, Reconstruction Or Expansion Of Building Structures
• New & Expanding Industry Program

Montana Board Of Investments Infrastructure Loan Package

• Loan funds infrastructure projects that provide facilities/services to basic sector businesses

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• The SBA 504 Loan Package
• Big Sky EDC Revolving Loan Fund
• Yellowstone County Tax Incentive Programs
• Montana Board of Investments Infrastructure Loan Package