SBA 504 Subordinated Financing

Needham, Massachusetts, May 11, 2009

Warren Kirshenbaum is pleased to announce the refinancing into permanent debt of subordinated construction loan for the Middleton Family Medicine Medical Facility, using the US Small Business Administration’s (“SBA”) 504 program. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to fifty percent (50%) of the project cost, a loan secured with a junior lien from an SBA approved lender (backed by a one-hundred percent (100%) SBA-guaranteed debenture) covering up to forty percent (40%) of the cost, and a contribution of only ten percent (10%) equity from the small business being helped. In this transaction, the loan was funded by New England Certified Development Corporation, an affiliate of the BDC Capital Corporation.

If you have any questions about commercial real estate, development financing, or SBA 504 refinancings, please feel free to contact Warren directly at 781-239-8900 or


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