ELIGIBLE BUSINESS SIZE

• Business net worth not to exceed $15 million
• Average net profit after taxes for 2 consecutive years not to exceed $5 million

• Determined by industry type
• Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture
• Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing

LOAN STRUCTURE

• 50% bank loan
• 40% CDC loan
• 10% borrower down payment

• Loan structure negotiable; dependent on risk
• 10% down payment (minimum)

PROCEEDS USE

• Purchase existing building
• Land acquisition and ground-up construction (can include soft cost development fees)
• Expansion of existing building
• Finance building improvements
• Purchase equipment

• Expand, acquire or start a business
• Purchase or construct real estate
• Refinance existing business debt
• Buy equipment
• Provide working capital
• Construct leasehold improvements
• Purchase inventory

PROGRAM REQUIREMENTS

• 51% owner occupancy for existing building
• 60% owner occupancy for new construction
• Equipment must have minimum 10-year economic life

• 51% owner occupancy for existing building
• 60% owner occupancy for new construction
• All assets financed must be used to the direct benefit of the business

COLLATERAL

• Generally, project assets being financed are used as collateral
• Personal guaranties of the principal owners of 20% or more ownership are required

• Subject assets acquired by loan proceeds
• Pledge of personal residence unless bank can justify why unnecessary
• Personal guaranties of the principal owners of 20% or more ownership are required

FEES

• Fees are financed in the 504 loan
• Fees are negotiated for the 50% bank loan
• Servicing fee (lowest allowed by SBA) for CDC plus a legal review fee

• Fees can be financed in the 7a loan
• Fees vary with the size of loan paired with 504 loan
• Additional .25% charged on any loan portion above $1 million