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As the Inland Empire continues its economic rebound and more small businesses open their doors, one company is striving to ensure new and expanding businesses get the assets they need by facilitating government-backed business loans.
Enterprise Funding acts as a Certified Development Company that assists Inland Empire businesses with the process of applying for a Small Business Administration (SBA) 504 loan – one of the most viable funding paths for businesses in need of fixed assets such as commercial property space and equipment. Because navigating the 504 application procedure can be challenging and the loan may not cover all of a business’s expenses, Enterprise Funding acts as a Certified Development Company that assists local businesses with the process and underwrites a portion of the loan.
Based in Redlands and servicing the entire Inland Empire – Riverside County, the Coachella Valley and all of San Bernardino County including the High Desert – Enterprise Funding specializes in facilitating SBA-backed loans that can be used to purchase fixed assets. After an eligible business owner makes the SBA’s required 10 percent down payment, the company creates a small business loan package at no cost to the applicant, underwrites 40 percent of the loan and then shops for banks that can put up the remaining 50 percent.
“We’re doing a lot of deals and the people we’re working with are great,” said Jeff Sceranka, president of Enterprise Funding. “Normally, the people we deal with are coming to us because they’re looking for a way to save money on their purchase of a building and they’re looking for us to help with the financing.” Heavy equipment and machinery are also eligible assets that can be purchased with SBA 504 loan funding. Per SBA guidelines, the loan may not be used to purchase inventory or for working capital.
In most cases, eligible 504 loan applicants are businesses seeking to expand their operations by purchasing fixed assets ranging from $125,000 to $15 million dollars. Their tangible net worth must be $15 million or less, and average net profits after taxes cannot exceed $5 million per year for the previous two years unless the business meets certain exceptions.
Enterprise Funding has helped businesses secure SBA 504 loans since 1983. For more than 30 years, the company has worked with small businesses from a variety of industries. “We have always served the Inland Empire,” Sceranka said. Because the group has a special interest in local economic development, he said, “We’re always working to bring new businesses to the Inland Empire.” Recent clients include those dealing in energy, manufacturing, construction, the restaurant industry and the medical field.
Enterprise Funding is one of a few hundred Certified Development Companies nationwide, which is a non-profit corporation established under the SBA 504 code. Certification indicates that the company is equipped to support economic growth in its local region. According to Sceranka, the company is currently working aggressively in the inland region’s two desert communities: the Coachella Valley including Palm Springs, and the High Desert cities north of the Cajon Pass.
“They are the least served areas,” Sceranka said, “and they are labor surplus areas. The federal government has designated those areas as needing assistance for job creation.”
Enterprise Funding is located at 300 East State Street, Suite 230 in Redlands. The office can be reached at (909) 792-3803.
