HOW DOES A SBA 504 LOAN COMPARE TO A TRADITIONAL BANK LOAN

	TxCDC SBA 504 Loan with Partner Bank Loan
PROJECT AMOUNT	$1,000,000
Loan Fees and Costs	$13,000
OWNERS INJECTION (10%)	$100,000
		Interest Rate	Total Interest Paid during 10 years	Total Interest Paid during 20 years
Borrowing Need	$913,000
Bank Loan	$500,000	6%	$250,893	$359,717
TxCDC SBA 504 Loan	$413,000	4.76%	$164,830	$220,957

Monthly Payment	$6,253		$2,671	$3,582

Annual Savings in Payment		$2,340

Savings in Interest over the Life of the Loan		$66,817

	Traditional Bank Financing
PROJECT AMOUNT	$1,000,000
Loan Fees and Costs	$10,000
OWNERS INJECTION (20%)	$110,000
		Interest Rate	Total Interest Paid during 10 years	Total Interest Paid during 20 years
Borrowing Need	$900,000
Bank Loan	$900,000	6%	$406,606	$647,491


Monthly Payment	$6,448