The U.S. Small Business Administration (SBA) has named Rockland, Mass.-based Rockland Trust Co. the national 2010 Small 1st Mortgage Lender of the Year, recognizing Rockland Trust's active participation in the SBA's 504 Loan Program.
‘Consistently a top SBA lender in Massachusetts, Rockland Trust has made it a point to increase 504 lending in the state,’ says Bob Nelson, SBA's Massachusetts director. ‘Rockland Trust's dedication to the program has helped bring new jobs to the local community.’
The 504 loan program provides growing businesses with long-term, fixed-rate financing for the purchase of real estate and capital assets. Some advantages of the 504 loan for businesses include a lower down payment; below-market, fixed-rate financing; and longer repayment terms.
The 504 loan is a two-tiered financing structure in which a bank finances up to 50% of the project costs and a certified development company (CDC) finances up to 40% of the project costs. The bank holds a first lien on the assets financed and the CDC holds a second lien on the assets. The borrower typically contributes the remaining 10% of the project cost.
Rockland Trust was chosen for this award based on its high lender rating and ongoing active participation in the 504 program. The bank increased its use of the 504 program last year and was the most active bank lender in Massachusetts during fiscal year 2009, approving 23 first-mortgage 504 loans totaling over $10 million – a 156% increase over fiscal year 2008.
SOURCE: Small Business Administration