Great commercial lending rates may be on your radar…or not!? Did you know that not only have residential lending rates dropped, but commercial rates have dropped as well. If you have been on the fence about purchasing or building a commercial or industrial building, these rates may be just the reason to move forward!
A little background about small business lending…
The Minnesota Department of Employment and Economic Development (DEED) provides some really great resources to help small business owners understand their options for lending. The primary resource may be found at the “Business Finance Guidance” page of their website. Here, you will find an explanation of grants, loans and SBA lending programs.
Regarding SBA lending, it is important to note that when applying for an SBA – 504 loan, you do so in coordination with your primary lender. According to DEED, “Also known as the 504 Loan Program, the Certified Development Company loan program makes joint federal and private-sector financing available to small businesses. The purpose of the program is to stimulate growth and expansion of small businesses within cities, regions and states having an SBA-approved Certified Development Company, thereby creating more jobs, increasing the local tax base, and expanding business ownership opportunities. This program provides long-term fixed-asset financing for small businesses. This type of loan is made by a Certified Development Company (CDC) in conjunction with a second loan from a commercial lender in order to meet a majority of the total financing requirements of a specific project.”
Additionally, you may find SBA lending information & rates pertaining to SBA 504 loans (Certified Development Co. loans) at any one of the following providers:
There are several CDCs in Minnesota, including:
- Central Minnesota Development Company
- Minnesota Business Finance Corporation
- Prairieland Economic Development Corp.
- St. Paul Metro East Development Corp. (SPEDCO)
- 504 Corporation
- Twin Cities Metro Certified Development Company
Disclaimer: Please note that neither Appro nor Cerron is a licensed lender and as with all financing information, you should discuss decisions with your accounting / tax / legal professionals for advice for your unique business needs.
We are, however, experts in commercial and industrial property solutions as it relates to commercial real estate, design, and/or construction. Our team would be honored to help answer any questions you may have about finding an ideal solution for your unique business.
Feel free to reach out to our team any time by visiting our “Contact Us” page on our website, clicking the button below, or completing the form on this page.