Frequent Questions

Frequent Questions

How long has BDC been in operation?
We have been serving Indiana and Michigan businesses since 1982.

How does BDC help businesses?
BDC offers supplemental long-term, fixed-rate loans for the development and expansion of small businesses. We take care of all the paperwork, and work with you and your bank to arrange the right financing package for your business needs.

Who are some of the businesses BDC has helped?
We helped Schafer Gear Works, a leading producer of high-precision, custom-engineered gears and machined parts, with the funding necessary to expand and relocate their headquarters to a new facility. For Global Access Point, a start-up company providing off-site data storage, data transport and disaster recovery capabilities for small businesses, BDC helped secure loans and other funds needed to begin operations.

What is the Small Business Administration 504 Loan Program?
The 504 Loan Program recognizes the contributions of expanding small- and medium-sized business toward job growth in the United States. It provides financing designed to meet the needs of qualified businesses planning to invest in equipment and/or real estate for their own use.

How can a 504 Loan Program help my business?
A 504 Loan Program offers numerous benefits to small businesses, including:
• Low down payment – conserving valuable operating capital
• Competitive, fixed interest rate – no future interest rate fluctuations
• Long term – brings debt service in line with the cash flow generated by the asset
• Fixed interest rates
• 10-20 year terms
• 10% borrower equity, 50% bank funded, 40% SBA
• Conserve working capital – 10% down
• Offset interest rate risk (of project tied to a fixed rate)
• Extended terms provide lower monthly payments
• Improve collateral position to increase borrowing capacity at lower rates

What other services does BDC offer?
In addition to 504 Loan Programs, BDC helps small businesses and entrepreneurs find grants and other sources of financing. Through our business expertise and network of contacts, we also help support the growth of new and established small businesses through consultation and putting them in touch with other companies who can provide valuable guidance and assistance.

Where are you located?
In Downtown South Bend, Indiana.

What is the extent of the territory BDC covers?
We provide financial backing and support to the entire state of Indiana and southwestern Michigan.