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SBA 504 Loan Program

20 year loan rate 4.96%
10 year loan rate 4.50%

The Oakland County Business Finance Corporation (BFC), certified by the U.S. Small Business Administration (SBA) since1982.smbfcedclogo.png

All questions welcomed at
Oakland County's BFC:

248-858-0765

The SBA 504 Loan Program provides qualified small and medium size businesses with long-term, fixed-rate financing for the acquisition or construction of fixed assets. BFC is a proven and reliable partner with the SBA, lenders, and businesses.  BFC's non-profit mission is to help businesses expand and grow and stimulate economic growth in the community.

 

Eligible Businesses:  Apply for an SBA 504 Loan if your owner-occupied business is a financially-stable, for-profit business in Michigan with a net worth of less than $15 million and an average annual net profit (after tax) of less than $5 million.

 

The BFC has helped close to 500 businesses, throughout Michigan, achieve their goals.

Eligible Projects:
  • Land acquisition
  • Land improvements
  • Building acquisition
  • Building construction
  • Building renovation
  • Machinery and equipment
  • Related soft costs


 
Loan Amount:  Approximately $150,000 to $13 million.  SBA maximums are $5 million for regular loans and $5.5 million for manufacturing and energy loans.

 

Funding Source:  Typically 40% from the SBA and 50% from a local bank.

Terms:
  The SBA portion is 10-20 years, and the bank portion is 7-10 years.

Down Payment:
  10% of project costs and 15-20% for special purpose buildings or start-ups.

Collateral: 
The assets being acquired, plus a personal guarantee by the business owners.

Approval Process:
  30 days from application.

Fees:
  Program fees can be financed.
 

 

 

 

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"Our financing for construction, remodeling, and equipment was assembled by the BFC in the darkest days of the 2008 credit freeze. Despite the timing, the program worked fabulously, and we continue to benefit from it."      
- Shane Pliska, President
  PLANTERRA, W. Bloomfield, MI
 
 
 
2013 BFC Annual Report (file size 9M)
 
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"It's a government program that works."

- Oakland County Executive, L. Brooks Patterson