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your monthly 504 news source
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August 2009 Headlines |
August's 20-year fixed interest rate is 5.4 percent.
Surdex Corporation purchased a new airplane hangar with a loan from the Business Finance Corporation.
SBA Officials Discuss Lending, How to get Financing
In response to the recession and dried secondary markets, Congress passed the American Recovery and Reinvestment Act (ARRA) to reduce the barriers to capital. Read the Small Business Monthly's Q&A with two SBA professionals to find out what else the agency is doing.
Special provisions in the new American Recovery and Reinvestment Act help manufacturers access tax-exempt bonds for expansion
Learn how your company can lower your high interest rate using the SBA 504 program.
You could win attractive gift cards for area stores, restaurants and even hotels. Learn how you could be next month's big winner.
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 Monthly Rate and Benefits
 August's SBA 504 rate is 5.4 percent for a 20-year fixed term and 4.4 percent for a 10-year fixed term. Both are "all-in rates" and include fees.
In addition to competitive rates, the SBA 504 offers many benefits:
- Low fixed interest rates
- Long-term financing (10 or 20 years)
- Low down payment (10 to 20 percent)
- Ability to finance soft costs/contingencies
- Mitigation of credit risk
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SBA 504: A Resource for Surdex Corporation
In June, the Business Finance Corporation of St. Louis County closed on a loan for Surdex Corporation to purchase a new hangar at Spirit of St. Louis Airport in Chesterfield, MO. The hangar provides additional space for the company's planes as well as office space.
Surdex Corporation was founded in 1954 by Earl R. Hoffmann Sr. and has continued to operate under the same family based management and ownership for more than 50 years. The company's operations include aerial photography, mapping and photogrammetric engineering services over the United States, Mexico and Canada.
Approximately 75 percent of Surdex's revenue is related to federal, state and local contracts, with customers including the U.S. Department of Agriculture, The Boeing Company, U.S. Department of Defense, Bohannan Huston, the State of Missouri, and Collier County, Florida.
To learn more about the company and deal, click here.
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| Stimulus Plan Expands Bond Opportunities for Manufacturers
Among the many incentives included in the American Recovery and Reinvestment Act (ARRA) are special bond provisions offering manufacturing companies a previously unavailable avenue to tax-exempt funds needed for expansion. The new bond adjustments apply through the end of 2010 and include:
- Removal of the 25 percent ancillary facility limitation. Bonds can be used to finance more non-core manufacturing assets, which were previously capped at 25 percent. Non-core assets include: warehouses, showrooms, offices, loading docks, testing labs, employee parking lots, lunchrooms, and land improvements.
- Ability to use the bonds to produce intangible property. Normally, bonds only can be used in connection with fixed assets such as the purchase of land or new construction. With the new regulations, bonds can be used for software production, research labs, recording and film studios, etc.
- Temporary suspension of alternative minimum tax (AMT). This provision lowers the interest rate on the bonds. Since the interest income is not subject to AMT, bondholders will accept a lower yield on the bonds.
"These new bonds provide significant savings to St. Louis County manufacturers," said St. Louis County Executive Charlie A. Dooley. "This is precisely the type of legislation we need to help our manufacturers and small to mid-sized businesses obtain the financing they need to expand and create jobs."
For additional tax incentives under the ARRA, contact Rick Palank at rpalank@slcec.com.
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2009 Incentive Program
Submit an SBA 504 referral to St. Louis County Economic Council to qualify for the following 504 Incentive Program:
1st referral - Receive a $50 Macaroni Grill gift card after the application is approved. Immediately after funding receive a $75 Best Buy gift card.
2nd referral - Receive a $50 Macaroni Grill gift card after the application is approved. Immediately after funding receive a $100 gift card to Citizen Kane or Sam's Steakhouse.
3rd referral - Receive a $50 Macaroni Grill gift card after the application is approved. Immediately after funding enjoy a night at the Chase Park Plaza Hotel including dinner at the hotel's premier restaurant.
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Did You Know...
Did you know the SBA has opened the 504 loan program so that companies can now refinance existing fixed-asset loans? For the first time, borrowers can refinance a conventional loan to a lower interest rate utilizing the SBA 504 loan program.
For more information on how your company can benefit from the SBA 504 refinance tool, contact Derek Dickrader at 314.615.7681 or e-mail him at ddickrader@slcec.com. | |
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121 S. Meramec Avenue, St. Louis, Missouri 63105
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