MEACO has helped new and existing local businesses obtain long-term, low-interest loans for building construction, expansion or new equipment purchases. Working directly with small businesses and their banks to get prompt financing, MEACO also provides valuable assistance to applicants throughout the paperwork process. MEACO has helped finance projects for small and medium-sized businesses throughout Mentor, and has resulted in the creation or retention of more than 1,300 jobs throughout the city.
The SBA 504 loan program from MEACO
The SBA 504 Loan Program provides long-term, fixed rate financing at below market interest rates. Virtually all for-profit small businesses with a net worth of 15 million dollars and under are eligible. Proceeds may be used for land, building, equipment or tooling. The SBA 504 Loan Program can lend up to $5 million dollars and in some cases up to $5.5 million if the project meets defined “policy goals.”
MEACO can help your customers:
- Conserve working capital - low down payment. Typically, 10% of the total project cost.
- Low, fixed long-term rates - No balloon payments
- Real estate and building loans are 20-year term
- Equipment - 10-year term.
MEACO can Help Your Bank
- Reduce Risk – finance a smaller portion of the project while maintaining a first-lien position on 100 % of the assets being financed.
- Become a Better Resource and Build Commercial Account Business – generate incremental revenue through additional new customers and services while participating in the long-term financing
- Make Larger Loans – total financing can be $2.5 million or more.
- Develop a Secondary Market in their First-Mortgage Portion.
- Comply with the Community Reinvestment Act – extend legal lending limits, Stimulate the Local Economy through job creation and retention.
- Save Time – there's no SBA paperwork for the lender.