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Federal Programs

SBA 504 Program

Type Direct loan to business
Eligible Businesses Retail, commercial, manufacturing, distribution or service
Size Standards Net worth below $6 million; annual income below $2 million
Use Land acquisition and improvements, purchase or remodeling of a building, construction of or addition to a building, purchase of machinery or equipment, leasehold improvements
Maximum 40% of project cost, up to $750,000 ($1,000,000 for targeted projects)
Term 10 years for equipment, 20 years for real estate
Rates Tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate
Equity Minimum 10% equity investment
Job Creation One job for each $35,000 of 504 financing (may be waived for rural development projects, which meet public policy goals)
Bank Loan 50% of project cost; fixed or floating rate; minimum seven (7) year term on equipment and ten (10) year term on real estate
Fees $500 application fee; up-front processing: 2.875%; annual: .60% servicing fee; closing: maximum $2,500
Contact:
Gary Seeley, Executive Director

Enterprise Development Corporation
9030 Hocking Hills Drive
The Plains, OH 45780
phone: 740-797-9646 ยท fax: 740-797-9659

SBA Contract Loan Program

Type Direct loan to business
Eligible Businesses: Construction contractors, general or special trade; manufacturers and service contractors with an assignable contract are eligible; must be in operation for 12 months before the date of the application
Size Standards Must have fewer than 500 employees
Use Finance labor and material costs for one contract; cannot be used to finance receivables or inventory
Maximum Up to $155,000 guaranteed at up to 90%; up to $750,000 guaranteed at up to 85%
Term Typically a 12 month term; large contracts may be approved for 18 months by the District Director
Rates Interest rate set by the bank, not to exceed the maximum rate set by SBA
Equity Assignment of the contract proceeds is required as collateral; pledge of outside assets and secured personal guarantees are usually required
Contact:
U.S. Small Business Administration

Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Defense Loan and Technical Assistance Program

Type Guaranteed Loan
Eligible Businesses: Defense-dependent small firms adversely affected by defense cuts
Size Standards Net worth below $6 million; annual profits below $2 million
Use Financial and technical assistance to help defense-dependent firms diversify into commercial market
Maximum Varies depending on 7 (a) or 504 participation; tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate; negotiable with lender; maximum 2.75% over prime
Term $1.25 million (total loan amount)
Rates Varies depending on 7 (a) or 504 participation; tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate; negotiable with lender; maximum 2.75% over prime
Bank Loan Required
Fees Guaranty fee paid by lender (may be passed on); based on maturity amount of SBA exposure
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Export Working Capital Program

Type Guaranteed loan
Eligible Businesses: Small business exporters who need short-term working capital
Size Standards Net worth below $6 million; annual profits below $2 million
Use Short-term working capital loans for exporters
Maximum $750,000 (may be combined with International Trade Loan); maximum guarantee $750,000 ($1 million in some cases); private lender unlimited
Term Matches single transaction cycle or generally one year for line of credit
Rates No cap
Fees Paid by lender (may be passed on); based on maturity amount of SBA exposure
Contact:
US Small Business Administration (SBA)
Federal Building, US Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Small General Contractor Loans

Type Direct loan to business
Eligible Businesses Must be a construction contractor or homebuilder
Size Standards Must have fewer than 500 employees
Use Must be used only for direct expenses of the project; rehabilitation projects also qualify if, at the time of loan application, the estimated costs are equal to or more than a third of the purchase price or the fair market value of residential or commercial buildings at the time they are offered for sale; may also be used to purchase vacant land if the price is no more than 20% of the total loan; no more than 5% of the loan can be used for streets, curbs and other development costs that benefit properties other than the one being built or rehabilitated.
Maximum Up to $750,000
Term Thirty-six (36) months, plus a reasonable estimate of time it takes to complete the construction or renovation; principal repayment may be required in a single payment when the project is sold, interest payments are required at least twice a year and must be paid from the applicant’s own resources not from loan proceeds
Rates Prime rate plus 2.25%
Equity Loans must be secured by not less than a second lien. The total amount of the first and second liens cannot exceed 80% of the contractor’s anticipated selling price.
Job Creation
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Guaranty Loan 7 (a)

Type Partial loan guarantee
Eligible Businesses: Retail, commercial, manufacturing, distribution or service
Size Standards Must have fewer than 500 employees
Use Working capital; acquisition of supplies, inventory or fixed assets; financing of contracts
Maximum $750,000 guaranteed at 75% (80% if total loan is $100,000 or less)
Term 5 to 10 years for working capital; up to 25 years for fixed assets (not to exceed life of equipment)
Rates Negotiated, up to prime rate plus 2.75%; may be fixed or variable
Equity Start-ups must have 20% to 30% equity investment; more is required on higher risk businesses; requires a personal guarantee
Bank Loan Required; application is submitted through a private lender
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Guaranty Loans 7 (a)-LowDoc

Type Partial loan guarantee
Eligible Businesses: Retail, commercial, manufacturing, distribution or service
Size Standards Start-ups; businesses with $5 million or less annual sales for the past 3 years; employ 100 or fewer
Use Working capital; acquisition of supplies, inventory or fixed assets; financing of contracts
Maximum $100,000 guaranteed at up to 80%
Term Not to exceed 25 years for fixed assets; 10 year maximum for all other uses
Rates Negotiated, up to prime rate plus 2.75%; may be fixed or variable
Equity Start-ups must have 20% to 30% equity investment; more is required on higher risk businesses; requires a personal guarantee
Bank Loan Required; application is submitted through a private lender
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA International Trade Loan Program

Type Guaranteed loan
Eligible Businesses: Small businesses engaged or preparing to engage in international trade or adversely affected by competition from imports
Size Standards Start-ups, businesses with $5 million or less annual sales for past 3 years; employ 100 or fewer
Use Combination of working capital and fixed-asset financing; improvements in U.S. for producing goods or services; may not be used to pay existing debt
Maximum $1.25 million; varies depending on whether done under 7 (a) or 504; 75% guarantee under 7 (a); 40% of the project (100% SBA-backed debenture)
Term Up to 25 years
Rates Negotiable with lender; maximum rate 2.75% over prime
Fees Paid by lender (may be passed on); based on maturity amount of SBA exposure
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Pollution Control Loan

Type Partial loan guarantee
Eligible Businesses: Most for-profit small businesses
Size Standards Must have fewer than 500 employees
Use Pollution Control Loans are intended to provide loan guarantees to eligible small businesses for financing of the planning, design or installation of a pollution control facility. The facility must prevent, reduce, abate or control any form of pollution, including recycling.
Maximum Up to $1,000,000 guaranteed at 75%
Term Maximum term is 25 years
Rates Prime rate plus 2.25% to 2.75%
Equity Holders of at least 20% ownership in the business are generally required to guaranty the loan.
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

SBA Seasonal Line of Credit

Type Partial loan guarantee
Eligible Businesses: Small firms needing a loan due to seasonal increase in business activity; must have been in business for at least 12 months; this program is for those contractors who cannot obtain bonding elsewhere
Size Standards Must have fewer than 500 employees
Maximum Up to $100,000, guaranteed at up to 80%; up to $750,000 guaranteed at up to 75%
Term Up to 5 years
Rates Maximum prime rate plus 2.75%
Equity Required; loan secured from private lender
Contact:
U.S. Small Business Administration
Chicago Regional Office
230 Dearborn Street, Room 510
Chicago, IL 60604-1593
phone: 312-353-7331

SBA Small Asset-Based Loan Program

Type Direct loan to business
Eligible Businesses: Most for-profit businesses
Size Standards Must have fewer than 500 employees
Use Working capital to meet seasonal increase in business
Maximum Up to $200,000
Term Up to 5 years
Rates Maximum is 2.25% above Prime
Equity Collateral is primarily liens on all inventory and accounts receivable
Bank Loan Pledge of outside assets and personal guarantees may be required
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860

USDA Business & Industry Loan Guarantees

Type Partial loan guarantee
Eligible Businesses: Most for-profit businesses; exceptions and ineligible purposes include charitable institutions, churches and fraternal organizations, lending and investment institutions, insurance companies, race tracks, golf courses and revolving lines of credit
Use Up to 80% loan guarantee for acquisition of real estate, machinery and equipment or term working capital
Maximum $10,000,000; $25,000,000 under limited circumstances
Term Maximum is 7 years for term working capital; 15 years for machinery and equipment; 30 years for real estate
Rates Fixed or variable
Equity Minimum is 10% tangible balance sheet; Start-ups should have tangible book equity of 20% – 25%
Job Creation Goal is $40,000 of loan guarantee for each job created or retained
Bank Loan Collateral: Must be sufficient to protect the interest of the lender and USDA; generally personal guarantees are required
Fees A one-time guarantee fee, equal to two percent (2%) of the guaranteed portion of the loan is due at the time the guarantee is issued