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We are excited to announce an agreement for the acquisition of The Bank of Washington by Sound Credit Union has been reached. Read More
NOTICE: Please note that the date of the Shareholders meeting has changed to January 4, 2019, 2:00 p.m. PST, at the Edmonds Center for the Arts. For more information, visit our Investor Relations page.
The Bank of Washington is a locally-owned commercial bank that invests in its communities by partnering with small businesses who qualify for SBA loans. The Small Business Administration has two popular loan programs, the 7(a) Program and the CDC/504 Program, which differ in a number of ways, such as required down payments, typical project size, loan purpose and SBA fees.
The 7(a) loans are guaranteed by the Small Business Administration, with the percentage of guarantee determined by the loan amount. SBA 7(a) loans offer longer terms and maturity, lower monthly payments, with no balloon payments, resulting in improved cash flow. They are designed to help small businesses grow, with financing to:
In contrast, 504 loans are made in conjunction with a Certified Development Company (CDC), and are a great way to finance:
A 504 loan is typically structured with the bank covering up to 50% of the project's cost and SBA providing 40% of the cost. The remaining 10% is covered by the borrower's down payment. The business owner must occupy at least 51% of the property. In addition to the low down payment, there are many other benefits with a 504 loan, including no balloon payments, longer terms of 10-20 years for the SBA portion, and up to 25 years for the bank portion.
If you are interested in exploring the SBA's 504 Program, The Bank of Washington offers a dedicated SBA specialist who can help. To schedule an appointment today, contact Sam Cha at (425) 563-3101.