You can choose to secure your loan directly from CHFA or through a participating local bank. In addition to traditional loan products, CHFA offers banks the ability to fix the interest rate on Small Business Administration (SBA) loans.

If your existing business wants to acquire owner-occupied commercial property or manufacturing equipment, CHFA offers competitive, fixed rates with equity contributions as low as 10%. CHFA Direct and the SBA 504 loan both feature a fully amortizing, fixed interest rate. This allows small business owners to project future cash flow requirements on one of their largest investments.

CHFA Direct

CHFA Direct provides owner-occupied real estate financing for loan amounts ranging from $50,000 to $20,000,000 with down payments as low as 15%. It features a fully amortizing, fixed rate with loan terms up to 20 years. This program also allows financing of manufacturing equipment. Prospective businesses should apply directly to CHFA. Manufacturing businesses with project amounts exceeding $2 million may be eligible for special tax exempt financing. 

SBA 504 Loan

With as little as a 10% down payment, businesses can finance commercial owner-occupied real estate. A typical loan structure includes a first mortgage from CHFA representing 50% of the total project, with the SBA providing a second mortgage for 40%. Both loans include a 20-year fixed interest rate and may also be used to finance machinery for up to 10 years. By limiting the down payment requirement, firms are able to preserve cash for investment back into their businesses. 

In addition to the Direct and SBA 504 lending, products CHFA also supplies additional advantages to nonprofits and rural businesses.