SBA loan program is a government loan guarantee program. A project and its developer have to meet strict credit requirements in order to qualify for such loan. An investor investing in a project that has an SBA loan approval is similar to having the government as a partner. In YiYo projects, the SBA guaranteed loan will be in a junior position to the YiYo EB5 loan. This means that the government is sufficiently satisfied with the soundness of the project and its developer that it is willing to guarantee a loan that is subordinate to the YiYo EB5 loan.
As outlined in the diagram above, the YiYo EB5 will finance the 1st Trust Deed loan amount. The SBA 504 loan program will finance the 2nd Trust Deed loan through the issuance of bond upon completion of project. AVANA Capital, in the meantime, will finance the Interim loan once the SBA authorization has been issued. The remaining funds come from the United States SBA qualified borrower to complete the total funds required to build the project. s
To learn more about SBA loan programs, please visit AVANA Capital website, click here http://www.avanacapital.com/sba-504.html  

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