The SBA 504 loan program provides long-term, below-market, fixed-rate financing to small businesses for construction or renovation of facilities; or to purchase real estate, machinery and equipment. A 504 loan package is a combination of two loans, one from Wyoming Capital Access and a second loan from a commercial lender, such as a bank or credit union. By partnering with Wyoming Capital Access on an SBA 504 loan, lenders can offer an additional small business financing solution while minimizing collateral risk.

SBA 504 loans finance up to 40% of eligible project costs and the participating lender provides a first mortgage loan that is typically for 50% of the project with a first lien position on the asset being financed. The commercial loan must have a minimum 10-year term on real estate or a 7-year term on machinery and equipment. The commercial lender sets their interest rate and fees and establishes their covenants provided they are deemed reasonable by the SBA. The commercial lender also provides interim financing or a bridge loan for the construction phase of the project.

When the borrower is ready to complete the purchase or construction is complete, Wyoming Capital Access, working with the SBA, provides financing with an SBA-guaranteed second mortgage in a second lien position, pays off the interim loan and provides permanent financing for 10, 20, or 25 years at a competitive, fixed interest rate. The commercial lenders get a 50% loan to value ratio while addressing the needs of their small business customers. Additionally, the business borrower retains more working capital and can continue to grow the business.