1) Lower Down Payment RequirementsHigher loan-to-value ratios allowed by SCED 504 loans make qualifying easier. You can borrow up to 90% of your financing needs, thus preserving valuable cash.

2) Below Market Interest RatesYour business can save on interest expenses by NOT accepting market interest rates when below market rates are available to you.

3) Longer Loan AmortizationsLonger loan amortizations allow for smaller monthly repayments, lowering impact on cash flows.

4) Finance Closing and Soft CostsFinancing closing and other soft costs helps to keep out-of-pocket expenses to a minimum.

SBA 504 LOAN PROGRAMA Better Way To FinanceCommercial Real Estate

Superior California Economic Development (SCED) is certified by the U.S. Small Business Administration to provide low-interest financing to small business owners.

SCED has been helping small businesses in California purchase their own real estate since 1990 and has built an extensive portfolio of experience.

In addition, SCED serves as a non-traditional financing source through our Business Loan Program for existing and start-up businesses whose unique financing needs are often inadequately met by traditional lending institutions.

499 Hemsted DriveSuite ARedding, CA 96002(530) 225.2760(530) 225.2769 fax

www.scedd.org

SUPERIORCALIFORNIAECONOMICDEVELOPMENT

SUPERIORCALIFORNIAECONOMICDEVELOPMENT

SCED 504 LOANPROGRAM BENEFITS ABOUT USABOUT USSCED 504 LOANPROGRAM BENEFITS

BUSINESS TYPESUSING SCED 504LOANS

Hotels & Motels • Restaurants • Car Washes • Medical Offices • Attorney’s Offices • Automotive Repair Shops Gas Stations with Mini-Marts • Child Day Care Centers • Dental Offices Manufacturing Facilities • General Office Space • RV Parks • Warehouses

Veterinary Hospitals

BUSINESS TYPESUSING SCED 504LOANS

SUPERIORCALIFORNIAECONOMICDEVELOPMENT

SUPERIORCALIFORNIAECONOMICDEVELOPMENT

4856 89824 SBA_504_Loan.indd 1 6/23/09 1:39:27 PM

HOW CANSBA 504 LOANPROCEEDS BE USED?

THE SBA 504LOAN STRUCTURE

•Buy,constructorimproveowner-occupiedcommercial and industrial property with MINIMAL investment.

•Purchaseorremodelanexistingbuilding.•Purchase land and construct a new building.•Tocoversoftandclosingcosts.•Purchaseprojectmachinery&equipment

99% of all U.S. businesses meet the SBA definition of a small business and chances are excellent that yours will too. In order to qualify for a SBA loan, your business must be:

•Owner-operated,forprofitentity.•Organized as a sole proprietorship;

partnership;corporation;orLLC.•Tangible business net worth cannot

exceed $8.5 million.•Businessnetincomecannotaverage

more than $3.0 million during the previous two calendar years.

•Theguarantors’/principals’personal,non-retirement, unencumbered liquid assets cannot exceed the proposedprojectsize.

PROJECT COSTS:

Purchase of Land & Building ------------------ $1,700,000

Machinery & Equipment ----------------------- 250,000

Furniture & Fixtures ---------------------------- 30,000

Soft Costs* ---------------------------------------- 20,000

TOTAL PROJECT COSTS: $2,000,000__________________________*Soft costs may include architectural fees, appraisal and environmental fees, interim bank interest and other pro-fessionalfeesassociatedwiththeproject.

LOAN TYPE 504 CONVENTIONAL

Owners Equity $200,000 $400,000

Bank Loan $1,000,000 $1,600,000

SCED 504 Loan $800,000 $0

TOTAL $2,000,000 $2,000,000

•Businesstaxreturnsfor3years•Businessfinancialstatementfor3years•Currentbusinessfinancialstatements•Personaltaxreturnsfor3years•Currentpersonalfinancialstatement

Your SCED Loan Officer can pre-qualifyyour company in 24 hours!

An established company (2+ years in business) has an opportunity to purchase its own facility. The following is a breakdown of the proposed deal:

A TYPICAL 504LOAN SCENARIO

QUALIFYING FORAN SBA 504 LOAN

Here’s what you’ll need to start:

HOW CANSBA 504 LOANPROCEEDS BE USED?

THE SBA 504LOAN STRUCTURE

A TYPICAL 504LOAN SCENARIO

Here’s what you’ll need to start:

QUALIFYING FORAN SBA 504 LOAN

SCEDFinancing

40%BankFinancing

50% CompanyCash Down

10%

CompanyCash Down

10%

BankFinancing

50%

SCEDFinancing

40%

A 504 Loan has three participants:

1) Bank Financing - Superior California Economic Development (SCED) arranges for a bank to participate for as little as 50% of the loan amount, at competitive rates and terms due to minimal exposure ontheproject.

2) SCED - SCED’s SBA 504 loan financesupto40%or$1.5million*oftheprojectwith a fixed rate for 20 years.

3) Company Cash Down - Borrower con- tributes a minimum down of at least 10%, freeing additional cash for other business purposes.

*Up to40%or$2million for theproject thatmeetsSBAgoals or 40% or $4 million for manufacturing businesses.

504 loans are structured with fully amortizing 20-year terms and carry a

lower-than-market interest rate.

www.scedd.org

4856 89824 SBA_504_Loan.indd 2 6/23/09 1:39:33 PM