About SomerCor 504, Inc.
Founded in 1992, SomerCor 504, Inc. is a non-profit development company certified by the U.S. Small Business Administration (SBA) to originate SBA 504 loans in Illinois. SomerCor holds a portfolio in excess of $360 million comprised of more than 750 loans. SomerCor consistently ranks in the top 15 nationwide of all CDCs.
It’s not always easy to find reliable financing when planning for growth. High cash outlay requirements, uncertain interest rates, and short payback periods make conventional loans unappealing or unavailable- even when expansion makes sense for a business, its employees and the community. At SomerCor, we can help achieve growth plans with a smart financing solution called the 504 Loan Program.
The 504 program helps healthy, for profit businesses with financing for projects involving the purchase, construction, improvement, or refinance of fixed assets. Banks and other lenders participate for 50% of the total project cost, while SomerCor finances 40% (up to $5.5 Million) of the balance.
This leaves only a 10% down payment for the business, helping it to preserve valuable working capital. The 504 program is a win-win arrangement. The business maximizes the amount of money it receives and the bank gets a first lien on all the assets with only a 50% loan to value. The business is happy and so is the bank.