Byong Yu, owner of a Koreana Plaza Market, had plans to revamp his retail shopping center in Rancho Cordova. Yu had the track record to pay back a million dollar cash advance. But things turned out to be not so easy for Yu at this time of tight credit.
This is when the U.S. Small Business Administration’s 504 loan program came to rescue. Yu successfully secured $3 million that served as a great impetus for his retail center. The 504 program is not new. It was created in 1980 to finance growing small and medium- sized businesses. Then, the momentum built-up with lenders and business owners queued in.
Businesses find the 504 loan program to be attractive as they are long term loans. The presence of CDCs makes things more attractive. Certified Development Companies or CDCs are private corporations that are directly regulated by SBA for making SBA 504 loans in a particular geographical area. Nationwide, there are approximately 250 CDCs.
Yu’s ambitious project on receiving 504 loans is doing exceptionally well. This project is going to become an expanded Koreana Market as the market’s footprint will double to 78,000 square feet from its present 30,000 square feet. According to Yu, this expansion is going to create 90 new jobs.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com