The SBA recently honored Dupaco Community Credit Union with its 504 First Mortgage Lender of the Year award for the state of Iowa.
The $838 million CU was a first mortgage lender on three 504 deals in Dubuque, Iowa in fiscal year 2009. Their share of financing accounted for over $849,000 but made available over $1.5 million in total project dollars, creating 14 new jobs and retaining eight others, according to the SBA. In addition, through other loan SBA loan programs, Dupaco approved 14 loans for $362,000.
SBA's 504 program is used to provide long-term fixed asset financing to small businesses. Under the program, lenders finance 50% of the cost and take a first mortgage position on the assets financed, while an SBA Certified Development Company finances 40% of the project and the small business owner provides a down-payment that can be as low as 10%.