Business Financing Program
Small Business Administration 504
(SBA 504)
Where to Apply
John Biemiller, vice president |
For additional information or with questions about the SBA 504 program, contact us at 717-397-4046.SBA 504 Program Summary
Small business loans- provide growing businesses with long-term fixed-rate financing for major fixed assets, such as land, buildings and equipment
- available to most for-profit businesses for qualified projects that result in the creation or retention of jobs.
Eligibility
Sole proprietorships or small businesses (tangible net worth <$8.5 million and average net income <$3 million) including:- most for-profit, small businesses (500 employees or fewer)
- agriculture production
Uses and Purposes of Funding
- Land and building acquisition
- Building construction and renovation
- Purchasing/upgrading long-term machinery and equipment
Amounts
- Up to $1.5 million or 40% of total eligible project costs (whichever is less)
- Up to $2 million for certain qualifying projects
- Up to $4 million for manufacturers
Terms
- Market interest rate (average rates based on 5 and 10-year Treasury notes plus a fixed rate spread)
- 20-year fixed rate term for real estate
- 10-year fixed rate term for machinery and equipment
- 10% equity required
- 15% equity required for start-up projects
- Must create/retain one job for every $65,000 borrowed ($100,000 for manufacturers)
Fees
- 2.0%-2.5% commitment and closing fee—funded by debenture
- 0.5% participation fee based on first mortgage loan amount
Additional Information
More information can be viewed at the SBA 504 page of the SBA web site.
