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504 Loan Program - small group

What is MADCO?
How Does it Work?
What are the Requirements?  
Who Qualifies?
Rates, Terms and Fees
What are the Advantages?
How do I Apply?  
MADCO Board Members


Advantages of the SBA 504 Loan

Low down payment. In most cases, just 10 percent. Lets you preserve your cash for your working capital. .

Fixed rate on the SBA 504 portion. You don't have to worry about the prime lending rate going up. You can plan because you know the amount of your mortgage payments for the next 20 years.

Long term. SBA 504 loans are for 10 or 20 years. Because the CDC/SBA is in a second lien position, the bank or other lender doing the 50 percent first mortgage loan is willing to lend at a longer term. Longer terms make your monthly payments lower.

Low interest rate. Even with all the fees and closing costs included in the rate, it is still a low rate for a subordinate mortgage loan, particularly for small business. The blended rate between the bank portion and the SBA 504 portion makes the project affordable to the borrower.

The 504 program encourages banks and other lenders to make loans in first position on reasonable terms, helps them retain growing customers and provides Community Redevelopment Act credit.


Metro Area Development Corporation

1144 NW 50th Street
Oklahoma City, OK 73118


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