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504 Loan Program

ELIGIBLE BUSINESSES AND PROPERTY TYPES

Almost any type of for-profit business is eligible.  Commercial real-estate must be partially occupied by borrower and includes, but is not limited to, the following types of properties:

  • Office Buildings
  • Professional Buildings
  • Warehouses
  • Restaurants
  • Industrial Buildings
  • Franchises
  • Manufacturing
  • Start-ups
  • Child Care Facilities
  • Single-Use Buildings

 

USE OF PROCEEDS

  • Real-estate acquisition, construction, or refinance - up to 90% financing available
  • Large Equipment Acquisition - up to 90% financing available

LOAN STRUCTURES

Financing available on projects up to $10,000,000

  1. Foundation Bank typically provides a first mortgage of up to 50% of the project costs. This loan can range from $250,000 to $5,000,000.
  2. The SBA, through a Community Development Company (CDC), provides up to 40% of the project costs in a second lien position.

TERMS AND INTEREST RATES

Bank First Mortgage

  • Up to 25-year term for real-estate loan and up to 10-year term for equipment purchase
  • Fixed and variable interest rates available

CDC Second Mortgage -

  • Up to 20-year term for real-estate and up to 10-year term for equipment purchase
  • Below market fixed rate for term of loan

FEES

  • First Mortgage - fees are always market competitive
  • Second Mortgage - 2.15% + legal review fee.

These fees are financed in the loan.  Additional fees also include customary closing costs, construction loan fees (if applicable), and bridge fees.