[Fredslist] Promotional Friday message from Charlie Schreiber- a Low Cost Ways to Invest in Your Own Facility

[Charles Schreiber]

Low Cost Ways to Invest in Your Own Facility

If you are a small business or not-for-profit which is currently renting its premises, tired of paying rent, want to build equity, stabilize costs, be free to make it truly your "home," be aware there are low cost ways to buy your own facility. These methods will enable you to buy on affordable terms with low downpayments so you can preserve your cash for working capital needs. Whether you are a for-profit business or a not-for-profit entity, the preservation of working capital and affordability of loans is important to you.

Typically, even if your credit is good, a bank will lend only 65-80% of the appraised value of the property being purchased. This leaves you to sink in 20-35% of the purchase price plus renovations plus soft costs. The SBA 504 loan program can reduce your equity to just 10% of total project cost. Take the purchase price plus renovation plus soft costs (appraisal, environmental, attorney, accountant, title insurance, permits, etc.). Of that total, a bank or other lender lends 50% in first mortgage position. The SBA 504 loan is for 40% in a second mortgage position and you, as the purchaser, put in just 10%. The SBA 504 loan is for 20 years at a low fixed rate generally below conventional commerical rates. 504 loans are offered by certified development companies around the country and The Long Island Development Corporation and under our region wide name- Greater New York Development Co., the nation's first CDC is one of its most respected. We cover all of New York State, New Jersey and Connecticut. 504 loans are available to any type of for profit small business.

Please call and I can explain in detail how this program works with other Economic Incentive programs as well such as Interest Rate Subsidies to lower monthly payments on the first mortgage.

Charles F. Schreiber Vice President, Lending
Greater New York Development Co.(GNYDC) / 
 Long Island Development Corp. (LIDC) 
45 Seaman Avenue Bethpage, NY 11714
866 433-5432 516-433-5000, x1025
cschreiber at GNYDC.org 
www.lidc.org 
www,gnydc.org
Greater New York Development Co. a Division of Long Island Development Corp. is a regional economic development, not-for-profit corporation which makes long term, affordable loans to small businesses. GNYDC is not a bank, but it is the premier small business lender in the NY Metro Area. GNYDC also provides technical assistance for companies wishing to do business with federal, state and local government and large corporate entities. GNYDC's mission is to encourage economic stability and growth in Long Island, New York, New Jersey and Connecticut.


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