Financing Structure
OSDC partners with a participating lender to provide the appropriate financing solution. The lender holds a first mortgage and/or lien filing and OSDC/SBA provides permanent, subordinate financing.
- A bank or other lender provides 50% of the required financing for an eligible project.
- OSDC provides up to a maximum of 40% of required financing for the purchase, construction or improvement of fixed assets.
- The business contributes a minimum of 10% as an equity injection.
Fees
- $500 non-refundable application fee.
- 2.65% of SBA loan portion, financed into loan.
- ½ of 1% of lender loan amount.
- Reasonable legal, closing and related costs
Example Project: Acquisition of land and building for $500,000.00
| Uses | Sources | |
| Bldg Acq. $500,000 Total $500,00 |
50% Bank | $250,000 |
| 40% 504 | $200,000 | |
| 10% Equity | $50,000 $500,000 |
|
1) Application Fee:A $500.00 (non refundable) application fee is to be paid to OSDC prior to the submission of an application package to the SBA.
2) Processing Fees:
| Fee |
20-year loans |
10-year loans |
| Funding Fee | .0025 | .0025 |
| CDC Processing Fee | .015 | .015 |
| Underwriter’s Fee | .004 | .00375 |
| SBA Fee | .005 | .005 |
| Total: | .0265 | .02625 |
| Total Fees: | .0265 x $200,000 = $5,300 | .02625 x $200,000 = $5,250 |
Note: Fee amount is always rounded up to the next even thousand. The difference is returned to the borrower when the loan is funded.
3) Closing Costs: The closing costs will fluctuate as determined by attorney fees, title insurance cost and recording fees. A maximum amount of $2,500 can be financed and added to the loan amount for closing costs.
4) Bank Participation Fee: This fee is collected from the bank that has the superior mortgage on the premises. The fee is equal to one half of one percent of the first mortgage amount (excluding any existing mortgage that was refinanced). The check should be made payable to Ohio Statewide Development Corporation.
Formula: .005 x $250,000 = $1,250
5) Summary of Fees:
| Fee | 20-year loan | 10-year loan |
| Application Fee | $500 | $500 |
| Processing Fee | $5,300 | $5,250 |
| Closing Costs | $2,500 | $2,500 |
| Bank Participation Fee | $1,250 | $1,250 |
| Total Cost of Fees: | $9,550 | $9,500 |