SEDA-COG Finance
Skip navigation links
SEDA-COG
Business & Industry
Communities & Non-Profit
Individuals / Residential
News, Notices & Publications
Resource Links
Calendar
SEDA Council of Governments > SEDA-COG Finance > Frequently Asked Questions
Skip navigation links
SEDA-COG FinanceExpand SEDA-COG Finance
Loan ProgramsExpand Loan Programs
Loan Application Forms
Success Stories
Lending Partners
Coverage Area
Newsletter
Loan Calculator
Loan Activity
Frequently Asked Questions
Contact Us
Links
Calendar

 Frequently Asked Questions

Here are some answers to Frequently Asked Questions about the Finance Program at SEDA-COG:
  
Q: Can SEDA-COG provide 100% financing for my project?
A: No.  The loans from SEDA-COG act as supplemental or "gap" financing in a project.  Depending on the funding source, as much as 50% of a project can be funded through SEDA-COG.  Multiple loan programs may be accessed for a single project, thus increasing the amount of participation, but at least 10% of the cost must come from the business.
top
  
Q: How much of my own money do I need to bring into the project?
A: For existing businesses, the typical equity (cash) requirement is 10% of the project cost.  If a building is involved in the project and it is designated as a "special purpose" building, an additional 5% equity is required.  For start-ups, the typical equity (cash) requirement is 15% of the project cost.  If a building is involved in the project and it is designated as a "special purpose" building, an additional 5% equity is required.
top
  
Q: What are the interest rates for the SEDA-COG loans?
A: Interest rates vary based on the loan program being used.  Rates can go as low as 2% for specific eligible projects.  Typically, rates range from 4% fixed to 6% fixed.
top
  
Q: How long are the terms of the loan?
A: For equipment, 5 to 10 years (typically 7); or land and building, 10 to 20 years, depending on the loan program.  In the limited cases of a working capital loan, the term is 3 years.
top
  
Q: Are SEDA-COG's loans available to service and retail establishments?
A: The majority of our loan programs are for manufacturers.  However, the SBA 504 loan program and IRP loan program can be accessed by service and retail establishments.  If a company is involved in the agriculture, hospitality, daycare, or tourism industry, they may qualify for the Small Business First loan program.
top
  
Q: What is the typical loan amount through SEDA-COG?
A: Our loans can range in size from about $25,000 to as high as $5,500,000.  Our average loan is around $250,000.
top
Q: I have a start-up business idea.  Can SEDA-COG help me get financing?
A: Yes.  While most of the companies we work with are established businesses, we can help finance start-up enterprises.  Start-ups will require a minimum equity (cash) injection into the project of 15%.  A completed business plan is also required.  Check with your local SBDC for help in developing a business plan.
top
Q: Can I refinance my existing debt through SEDA-COG?
A: The USDA B&I Guaranty can be used to refinance existing debt.  However, certain restrictions apply.  The SBA 504 loan program can also provided limited refinancing opportunities.