Business Initiative Corporation of New York (BIC)
The Money That Makes Business Grow
The Business Initiative Corporation of New York (BIC) is a lending institution established to make it easier for bronx businesses to access U.S. Small Business Administration 504 loans.
BIC works with the SBA and local banks to provide financing to all sectors of the Bronx and New York State business community including commercial, industrial, manufacturing and service firms. Together with its sponsor, The Bronx Overall Economic Development Corporation (BOEDC), BIC supports economic development in low and moderate-income communities of the Bronx, New York City and surrounding counties.
Since its inception in 1998, BIC has made loans in excess of $31.5 million. This investment has leveraged private sector investment of over $84 million, created and retained a total of 2,712 jobs in the Bronx and surrounding countries.
504 loans offer borrowers a variety of benefits which include:
- Low down payment to improve cash flow
- Below-market fixed rate to minimize the risks of future uncertainty
- A longer term to bring debt service in line with cash flow generated by a long-term asset
- Built-in incentives to encourage participation by financial institutions
What’s more, the professionals at BIC work with the applicant to package, process, close and service the 504 loans.
To find out how the Business Initiative Corporation of New York can help your business grow to the next level, contact Madeline V. Marquez, Executive Director at 718.590.3980.
If you are a:
SBA 504 Borrower
Eligible Businesses:
For profit organizations, partnerships, proprietorships, LLC’s and qualified start-ups
Loan Amounts:
Minimum Project Cost $125,000
Maximum Loan Amount $5.5 Million
$5 million in all areas
$5.5 million to manufactures and energy loans
Typical Financing Structure:
50% Bank
40% SBA
10% Equity
Other financing structures are available
Terms:
10 or 20 years
Rate set at the time of funding.
Job Creation:
1 per every $65,000 loaned
1 per every $100,000 loaned, if manufacturers
Restriction:
- Tangible net worth cannot exceed more than $15 million
- Net profits or after tax income cannot be more than $5 million during a 2 year period
Eligible Projects
Purchase of machinery and equipment, land improvements and soft costs related to project. Real estate construction, conversion and expansion: owner must occupy 2/3 of building. Real estate purchase: owner must occupy 60% or more.
Reduction of energy consumption by at least 10% and energy efficient projects.
Collateral
Mortgages on land with liens on equipment and machinery; lease assignments; and personal and corporate guarantees.
Benefits
- 20 year term
- fixed rate of interest
- Waiver of mortgage recording tax
- Provides a total of 90% financing in conjunction with the first mortgage lender
Fees
- 1 1/2% Processing Fee
Business Loans must meet one of the following objectives:
- Community Developments
- Rural Development
- Revitalization
- Minority Businesses
- Veteran Owned
- Enhanced Economic Competition
- Expansion of Exports
- Federal Budget Cuts
- Lender Mandated Policy
504 Facts for Bankers
Expand your Portfolio with Low-Risk 504 Loan Packages.
Are you looking for a way to attract commercial customers? Try the 504 Loan Program from the Business Initiative Corporation of New York.
Healthy businesses who plan to invest in equipment or real estate for their own use, could qualify for attractive financing using the 504 Loan Program - in a way that can help you meet policy and regulatory guidelines.
These are key 504 advantages for your financial institution:
- You have first lien position with a low loan-to-value, minimizing your collateral risk.
- You make your own credit decision and use your own loan documentation.
- There is no SBA paperwork for you to complete.
- Your portion of the loan counts for CRA
- You set your own rate and fees.
Click here for the Typical 504 Financing Structure
The Business Initiative Corporation of New York (BIC) makes the process easy. BIC professionals work with you and your client to tailor a financing package that meets program guidelines and the credit criteria of your client. They work directly with the applicant to package, process, close and service the 504 Loan.
To fund the 504 portion of the financing, BIC issues debenture (bonds) guaranteed by the U.S. Small Business Administration and sees then in the private bond market.
Pass on these 504 advantages directly to your clients.
- A low down payment to improve their cash flow. (They conserve valuable working capital, you have a stronger borrower)
- A fixed-rate 504 Loan to minimize the risk of future rate uncertainty.
- A longer time to bring debt service in line with cash flow generated by a long-term asset.
- Waiver of Mortgage Recording Tax on BIC portion.
504 Facts for Commercial Realtors
Cash Hurdles Can Be Overcome With 504 Loans
When cash is the biggest obstacle to a real estate or development deal, it's time to tell your business client about the 504 loan program at the Business Initiative Corporation of New York.
Businesses with good track records and promising growth potential can qualify for low down payment 504 loans if their expansion plans call for purchasing and occupying real estate.
A 504 Loan package offers your client key financial advantages:
- Low down payment
- Below-market fixed rate
- Longer terms
- Built-in incentives attractive to participating financial institutions
- Waiver of Mortgage Recording Tax on BIC portion
Click here for the Typical 504 Financing Structure
The Business Initiative Corporation of New York (BIC) makes the process easy for your client. BIC professionals do all the paperwork. They work directly with your client to package, process, close and service the 504 Loans.
BIC is structured to assist businesses in financing growth through investments that will help them become more competitive in the market place. They issue debentures (bonds) sold in the private bond market to fund the 504 portion of the financing. These bonds are fully guaranteed b the U.S. Small Business Administration.
504 Facts for Attorneys and Accountants
Why You Should Recommend 504 Loans to Your Business Clients.
Your business clients who have planned for expansion will thank you many times over if you tell them about attractive financing available through the Business Initiative Corporation of New York(BIC). 504 Loans are for healthy, growing businesses whose expansion plans call for investment in equipment or real estate for their own use.
Here are the key 504 advantages:
- Low down payment
- Below-market fixed rates
- Longer terms
- Waiver of Mortgage Recording Tax on BIC portion
Built-in incentives attractive to participating financial institutions
Click here for the Typical 504 Financing Structure
Help is available immediately. The Business Intiative Corporation of New York (BIC) makes the process easy for your client. BIC professionals work directly with your client to tailor a financing package that meets program guidelines and the credit criteria of your client's business. They package, process, close and service the 504 Loan.
BIC is organized to assist businesses in financing growth through investments that will help them become more competitive in the marketplace. BIC issues debentures (bonds) sold in the private bond market to fund the 504 portion of the financing. These bonds are fully guaranteed by the U.S. Small Business Administration.
For BIC success stories and examples of how SBA 504 loans have helped companies like yours, click on Newsletter under the News & Events section of this web site.