Amarillo, TX - If you'd like to expand or start up a business, now may be a good time.
The Small Business Administration 504 Loan Program is a federal loan that gives people, who want to expand or start a business, the chance to get a loan with a lower down payment and reduced interest rates.
WT A&M Enterprise Center Director Jeff Reid says, "The 504 loan program is a program of the small business administration. It's a federal program that assists borrowers to gain access to capital in a manner they might not otherwise be able to do so".
The Texas Panhandle Regional Development Corporation works with the Small Business Administration to provide the borrower with the financing for land or a building. Reid says, "One of the biggest keys, one of the biggest barriers to entry for a start up business is equity. And this 504 program allows them to lower their need for capital injection".
So this means a 20 to 30 percent lower down payment for the loan than most banks require for a commercial real estate purchase. The bank puts in 50 percent, 504 puts 40 percent, and you put in 10 percent.
"Many projects stall out because a lack of funding or availability funding. This is another means to stimulate the economy and create economic development by allowing loans to be made that otherwise in a conventional manner might not be made".
You may apply for this 504 loan at most local banks. If you need help with planning and developing your business, you can go to the Small Business Development Center downtown Amarillo.
Jessica Abuchaibe, NewsChannel 10.
