About the Program
This program is designed to assist borrowers who do not meet qualifying criteria for SBA 504.
For more information, please contact:
Joseph Lunsford
Business Development Officer
3300 N. Central Ave.
Suite 600
Phoenix, AZ 85012
Ph: 602-381-6282, ext. 37
Ph: 480-221-5346 (cell)
Loan Amounts
Stand Alone Structure
- 85% - 90% of total project cost or appraised value, whichever is less
- Loan limit: $1.5 MM ($2.5 MM for the New Markets Grow Arizona)
Participation Structure
- 85% - 90% of total project cost or appraised value, whichever is less
- Loan limit: $1.5 MM ($2.5 MM for the New Markets Grow Arizona)
- BDFC will assist in securing private lender to loan in 1st position on 50% of the project
- Grow Arizona Loan will be issued in 2nd position for up to 35% or 40% of the total project
- Borrower contributes 10% - 15%
Terms, Rates & Fees
Regular Grow Arizona
- Loan term: 20 years
- Rate: 10 year Treasury Note plus 4.66%
- Origination fee: 2.5% of loan amount
New Markets Grow Arizona
- Loan term: 25 years
- Rate: 7 year Treasury Note plus 2.4%
- Rate after 7 years: 10 year Treasury Note plus 3.85%
- Origination fee: 1.5% of loan amount
SBA 504 Equity Injection Grow Arizona
- Loan term: 20 years but can be shortened if secured by collateral other than SBA project property
- Rate: 10 year Treasury Note plus 4.66%
- Origination fee: 2.5% of loan amount
Qualifications
Mandatory
- 50% of employees and 50% of company assets must be located in low-income census tract.
- Project must be located in a qualified low-income census tract. Contact the BDFC officer for specifics.
Must meet one of the following criteria:
- Job creation and/or retention
- Project located in target business development area
- Serve disadvantaged populations as business owners
- Qualified non-profit businesses
- Project meets miscellaneous community impact objectives