Pub. 8 2020 Issue 2

23 The Community Banker • Low down payment — just 10%. This low percentage lets the business owner preserve cash for working capital. (The 10% rate increases to 15% in the case of a new business or special-purpose building, or 20% if both apply.) • Low fixed rate for the term of the loan; these are currently at historic lows. • Long term loan, which means a lower monthly payment. Terms for real estate loans can be 10, 20 or 25 years. For equip- ment, machinery, or both, the loan term is 10 years. Community Advantages The SBA 504 Loan program stimulates private sector investment in long-term fixed assets to: • Increase productivity • Create and retain jobs • Increase the local tax base COVID-19 Response As part of the CARES Act, the U.S. Small Business Administration arranged for the federal payment of current SBA 504 loan payments for six months. When implemented, our borrowers were very grateful, with responses like: “ While we were deciding about using the SBA to help us with our new building two years ago, a good friend of mine told me, ‘ if things get rough, the SBA will look after their customers. ’ Boy, was he right! ” “ Thank you! This is a huge relief. ” “ WOW, thank goodness, that ’ s what I was needing, I know I am only one company in need; we all need the help at this time. ” “ WOW! This is so great I could just cry. Thank you. Thank you. Thank you. ” “ I would like to send a huge THANK YOU to all of you for making this happen and helping all us small businesses out! For me, I wake up every day saying a prayer for help, and you guys have answered that prayer tremendously! ” Also, during this unprecedented time, some of our borrowers become innovative; for example: • West Paw pivoted its operation, from making dog toys and leashes to making masks and PPE. • Simms Fishing Products shifted its focus from fishing gear to design, develop and begin manufacturing medical gowns for hospital personnel and staff. • Headframes Spirits started distilling hand sanitizer in addition to distilling their spirits. Why Use Big Sky Finance? Big Sky Economic Development Corporation, dba Big Sky Finance, is certified and regulated by SBA to package, process, close and service the SBA 504 Loan program anywhere in the state of Montana. Our four-person team has over 55 years of combined experience in making SBA 504 loans and working hard to guide you thru the SBA 504 Loan process. The SBA 504 Loan program represents an investment that creates positive returns many times over, and it’s a WIN-WIN for ALL. For additional information, check out our website at www.bigskyfinance.org