What does CCDC finance?

What’s an SBA 504 loan?

What are some of the loan programs available?

How much do I need for a down payment?

What term and interest rate can I expect?

What is the average minimum and maximum loan amount?

What fees are involved?

What about collateral?

What’s the typical turnaround time for loan approval?

Can loans be prepaid?

What about refinancing?

Where does the money come from?

Do I have to change banks?

What is CCDC’s role in the loan-execution process?

What types of small businesses does CCDC work with?

What do you need from me?

The Answers You Need

Here are answers to questions frequently asked by business owners. Please contact us to address your specific situation.

What does CCDC help finance?

• Real estate for business expansion
• New buildings, additions or renovations
• Machinery or equipment
• Working capital

What’s an SBA 504 loan?
Often referred to as “brick and mortar” financing, SBA 504 loans:

• Finance expansion or renovation at a lower cost for growing small businesses.
• Work with a bank to offer long-term, fixed-rate financing for small businesses in need of real estate, machinery or equipment.

What are some of the loan programs available?

• SBA 504 enables healthy, growing companies to purchase land, buildings, machinery and equipment, or fund new construction up to $5 million and up to $5.5 million for manufacturing businesses.
• State of Ohio 166 helps small, growing manufacturing and distribution businesses finance up to $500,000 for land, buildings and equipment.
• City of Columbus offers working capital or real estate funding for smaller businesses.
• Franklin County Growth Fund provides flexible financing for up to $250,000 in working capital, equipment and business acquisition.

For details, refer to Loan Programs.

How much do I need for a down payment?

• Typically 10% of the loan’s value. It may be more for start-up businesses or special-purpose buildings, such as car washes and hotels.

What term and interest rate can I expect?

• Fixed interest rates at maturities of 10 and 20 years.
• These fixed rates are typically lower than most banks can offer on their own.

What is the average minimum and maximum loan amount?

• Loans typically average between $400,000 and $500,000, and can go up to $5.5 million for manufacturing. Minimum loan amounts are generally $50,000.

What fees are involved?

• Fees total 2.15% plus closing costs and may be financed with the loan.  

What about collateral?

• Assets of the financed project are typically used as collateral.
• Personal guarantees of all owners of 20% or greater of the businesses involved will be required to guarantee the loan.

What’s the typical turnaround time for loan approval?

• Two weeks, once we have your application and corresponding paperwork.
• Because our board holds weekly meetings, the loan-approval process is faster than most.

Can loans be prepaid?

• Yes, but there’s a penalty during the first 10 years. Under some circumstances, the loan may be assumed.

What about refinancing?

• Refinancing an SBA 504 loan permitted for a limited time. Please ask a CCDC loan officer about the details.

Where does the money come from?

• CCDC’s financing portion comes from sales of bonds guaranteed by the full faith and credit of the U.S. government.
• Bank portion of financing comes from our long-term Bank Partners.

Do I have to change banks?

• No. One of the benefits of working with CCDC is that we have ties to banks in nearly all areas of the state and across the country.

What is CCDC’s role in the loan-execution process?

• To help determine what type of loan is best for your needs and find a source for it.
• To make loans on behalf of the U.S. Small Business Administration, the Ohio Department of Development and the City of Columbus.

What types of small businesses does CCDC work with?

• Typically companies with annual sales between $500,000 and $15 million.
• The maximum number of employees is 500, but most of the firms we work with have between 10 and 50 employees.

What do you need from me?

• To secure a loan, CCDC requests applicants provide project descriptions and cost estimates, as well as company financial and tax information and other details.

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