US SBA SOP 50 10 8.1 Lender and Development Company Loan Programs
Section C Ch 1: 504 eligibility through application – US SBA SOP 50 10 8.1 Lender and Development Company Loan Programs

US SBA SOP 50 10 8.1 Lender and Development Company Loan Programs C1-D: Section C Ch 1 Para D: 504 debenture limits, maturities and Third Party Loan terms

The CDC keeps the gross debenture above the regulatory minimum and within the aggregate outstanding maximum for the small business and its affiliates (EPC and OC counted as one), with the separate per-project maximum for eligible Energy Public Policy Projects and Small Manufacturers, as set in 13 CFR 120.930 and 120.931 and the current SOP. It sets the 504 maturity at 10, 20 or 25 years by the useful life of the majority asset class (real estate up to 25 years, machinery and equipment at least 10) and ensures the Third Party Loan's term is at least 7 years against a 10-year debenture and 10 years against a 20 or 25-year debenture (an overall maturity where there are several Third Party Loans), with any balloon justified in the loan report and shown in the Terms and Conditions. Debenture rates follow the market at sale.

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