504 Accelerated Capital Express Loan Fund, I
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.