Funding and Financing
We plan to secure seed funding through a combination of SBA financing, state grant opportunities, and capital from other properties in our portfolio. By leveraging SBA 504 and 7(a) loans alongside California grant programs, this diversified approach ensures a strong and stable financial foundation for the project.
Seed funding for this project is planned through a combination of strategic financing options, including potential SBA loans, grants, and internal capital sources. We are evaluating the SBA 504 program, which offers large loan amounts of up to approximately $550,000, long repayment terms of up to 25 years, low down payments around 10%, and interest rates near 7%. The SBA 7(a) program is also under consideration, providing loan amounts up to $500,000 with competitive tiered interest rates, ranging from base rate plus 6.5% for loans of $50,000 or less, base rate plus 6.0% for loans between $50,001 and $250,000, base rate plus 4.5% for loans between $250,001 and $350,000, and base rate plus 3.0% for loans above $350,000. Along with repayment terms extending up to 25 years. Additional funding opportunities include state level grant programs available through CA.gov, as well as leveraging financing secured through other properties within our portfolio. This diversified funding approach is designed to support long-term project stability and ensure a strong financial foundation for development.