Loan Products
SBA Micro Loans:
RBAC can offer loans, up to $35,000, to small businesses at fixed rates ranging from 9 % to 10½ % - with up to 60 months to pay. Any for-profit business or non-profit childcare facility within the State of New Jersey is eligible to apply. Please note that loans are not available for the purchase or renovation of real estate or the refinancing of existing debt.
SBA 504 Loan Program:
The 504 Certified Development Company (CDC) program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land, buildings, machinery and equipment. The CDC is a non-profit corporation set up to contribute to the economic growth of its community. CDC's work in conjunction with the SBA and private sector lenders to provide small business financing.
EXAMPLE - for a $1,000,000 project, the borrower needs to provide 10% of the project costs ($100,000), the SBA/CDC contributes funding for 40% of the loan ($400,000) with the remianing 50% ($500,000) coming from a bank.
To be eligible, the business must be operated for profit and fall within the size standards set by the SBA. Under the 504 program, the business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million, after taxes, for the preceding two years.
504 Program benefits include:
* A minimal down payment by the small business owner, as low as 10%
* Long term financing, over 10-20 years, which enhances the cash flow of the company and avoids balloon payments, renegotiation of the loan and possibly higher interest rates and payments
* Attractive fixed interest rates on 504 debentures
Eligible 504 projects may borrow funds for:
* Land and/or building purchases
* New building construction and/or building renovation
* Leasehold improvements
Under the 504 program, loans cannot be made to businesses engaged in speculation or investment in rental properties.
For assistance, or more detailed information, concerning our SBA 504 loans please contact Jim Hughes, Director 504 Loan Program at jhughes@rbacloan.com. Or call him directly at (201) 400-2308
Mercer County Loan Fund:
Financing from $25,000 to $125,000 for start up or expansion of Mercer County businesses. Rates are 8% or prime plus 2%, whichever is more. Click here for an application.
Mercer County Arena District Small Business Incentive Loan Program:
Fixed rate loans, at 7.5% for a maximum of $20,000, are available to business owners and commercial building owners located in the designated Sovereign Bank Arena area.
ALL RBAC LOAN PROGRAMS CAN BE, AND OFTEN ARE, USED IN PARTNERSHIP WITH OTHER LENDERS FOR LARGER LOANS.
For example, a bank may be willing to lend a business the funds to buy real estate or equipment, while RBAC can provide the business with the working capital it needs to succeed.
