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Programs
Micro Credit Access
Southern California Business Development Fund
504 ACE
Small Business Administration 504 Loan
Section 108 Loan Program
Tax Exempt Bonds

504 Accelerated Capital Express Loan Fund, I


504 Accelerated Capital Express Loan FundDescription: The objective of the 504 Accelerated Capital Express Loan Fund I (504 ACE Fund) program is to provide the most flexible commercial real estate lending program to serve borrowers operating in distressed neighborhoods. The social objective of the fund is to stimulate job creation and revitalization by providing capital to assist the expansion of the small businesses and catalytic real estate development. This program combines the underwriting fundamentals of the SBA 504 with the capital formation abilities of both commercial banks and the emerging community development secondary markets. The 504 ACE Fund was established to provide long term permanent financing.

Use of Funds: Funds may be used for commercial/industrial real estate acquisition, construction or renovation, and leasehold improvements.

Eligibility Criteria: To be eligible, a business must meet the following: (1) have at least a three year operating history (2) a tangible net worth (3) a previous two-year average annual net profits (4) owner occupied and investor transactions are eligible (5) there must be sufficient cash flow on a historic basis to cover projected debt service and (6) Borrower must have an acceptable credit history. Non-profit companies are eligible.

One new job must be created for $35,000 of 504 ACE loan proceeds or other positive community impact.

Loan Amounts: Loan amounts range from $100,000 to $2 million for projects meeting the LDC's community impact goals which include: business district revitalization, expansion of exports and expansion of minority business development.

Fees: Loan fees are approximately 2.5% - 3.5% of the loan amount plus $2,000 for documentation and closing cost.

Rate: Fixed rate or variable rate pricing is available and determined at the time of commitment. Pricing is normally based on Treasury Market Rate plus market driven spread and servicing fee.

Term: The maximum term shall not exceed 15 years with amortization up to 25 years.

Collateral: The primary collateral shall be a first and/or second deed of trust on real estate and/or security interest in equipment or machinery. Personal guarantees will also be required.