As a result of the 504 Loan Program, smaller sized businesses are able to access the previously inaccessible public capital market and secure long term, fixed rate financing for a good share of the cost of planned expansion projects. The low 10% down payment greatly assists growing businesses by preserving working capital for continued growth. The interest rate on SomerCor’s portion is an attractive 20-year fixed rate. The business has the ability to finance all project related furniture, fixtures and  equipment. Soft costs can also be included in project financing. These include the following: appraisals, engineering and architectural costs, title searches, title and flood insurance, recording fees, zoning changes, environmental studies, permit fees, and other project related costs. The term of SomerCor’s loan more closely matches the life of the assets being acquired or improved. The private sector lender can more competitively position its own market terms and rates on 504 loan projects. Because the SomerCor loan is subordinated to the bank, the bank gets a first lien on all the assets with only a 50% loan to value. The 504 loan is fully assumable. If, during the life of the loan you decide to sell the project property, SomerCor’s portion of the loan can stay with the property, as long as the buyer qualifies under program guidelines.