Our Loan Programs include SBA 7(a) and USDA Loans
With over 26 million small businesses in America, meeting their financing needs is vital for the growth and prosperity of our country. With the help of loan programs developed by the United States Small Business Administration (SBA), and the United States Department of Agriculture (USDA), Ocean Capital is devoted to helping small business owners across the country secure financing.
SBA 7(a) Loans
The SBA 7(a) loan program is designed to provide loans to small businesses in need of flexible underwriting guidelines, extended loan terms, and low down payments. To learn more about the SBA 7(a) program, visit the official SBA website at http://www.sba.gov/.
CDC/504 Loan Program
The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders like Ocean Capital to provide financing to small businesses, which accomplishes the goal of community economic development. Typically, a CDC/504 project includes:
- A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost
- A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the project cost
- A contribution from the borrower of at least 10 percent of the project cost (equity)
This type of setup means that 100% of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien.
The 504 program cannot be used for working capital, inventory or consolidating debt. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.
USDA Business & Industry (B&I) Loans
The USDA loan program is a government guaranteed program whose mission is to improve, develop and finance business & industry in rural areas of the country. To learn more about the USDA program and rural development, visit the official website at http://www.rurdev.usda.gov/.
Loan Programs
| Type |
Best For |
Target Borrower |
Loan Amount |
Requirements |
Benefits |
| SBA 7(a) |
Real estate,
business
acquisitions and working capital. |
For-profit small business owners seeking long term financing guaranteed by the government. |
$250,000 –
$5 million |
Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history. |
Provides loans to small businesses unable to secure financing
through conventional credit channels, typically due to loan terms and property types. |
| SBA 504 |
Purchase of land including existing buildings, property improvements, construction of new facilities or renovating existing facilities. The purchase of long-term machinery and equipment. |
For-profit small business owners seeking long term financing for building or equipment. |
$250,000 –
$5 million |
Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history. |
Providing small businesses with long-term, fixed-rate financing to acquire fixed assets for expansion or modernization. |
| USDA |
Purchase of real
estate or working capital and business conversions. Investment
properties are
also eligible. |
Borrowers located in rural areas seeking business financing. |
$250,000 –
$5 million |
Must meet USDA
eligibility criteria for rural business location.
Program is available for properties located in
most towns with populations under
50,000. |
Provides loans to rural based businesses unable to secure conventional credit due to location and lack of comparables. |
