Eligible Applicants
Any for-profit small business with a net worth less than $15 million and profit after tax less than $5 million. 

Eligible Use
Land acquisition, site improvements, acquisition of existing building, building renovation, leasehold improvements, new construction, machinery & equipment with a useful life of at least 10 years, some furniture and fixtures, and certain soft costs, such as engineering fees, architectural fees, appraisal fees, and environmental fees. Loans may not be used for working capital, venture capital, or investment purposes.  Refinancing of long-term debt may be eligible in certain circumstances.

Loan Amount
The gross amount of the loan can be up to $5,000,000 for regular loans, $5,500,000 for Public Policy Goal loans, and $5,500,000 for small manufacturers, or 40% of the total eligible project costs, whichever is less. Additional equity requirements will reduce the SBA participation amount. 

Interest Rate
Based on the sale of U.S. Treasury Bonds. The rate changes every month until a loan is disbursed, then it becomes fixed for the life of the loan. Check on the latest rates. 

Term
10 years for machinery & equipment; 20 years for real estate. 

Equity Requirements
For existing businesses (more than two years of operations) borrower must provide a minimum of 10% of the project cost. For start-ups or changes in ownership, borrower must provide a minimum of 15% of the project cost. If the project involves special use assets, an additional 5% will be required. In some cases, existing equity in real estate can be used toward the borrower's participation. 

Job Criteria
One job to be created or in some cases retained for every $65,000 of net SBA 504 funds in the project within two years of disbursement. If the project involves a small manufacturer, the criteria is one job for every $100,000. 

Fees
SEDA-COG charges a 1 1/2% commitment fee, a $2,500 legal fee, and a .05% monthly servicing fee.  Other SBA closing and monthly fees apply.  These fees are added to the net loan amount and are paid over the life of the loan.  The monthly fees are added to the monthly payment of the loan.  Upon approval of the project by the SEDA-COG Local Development Corporation, there is a deposit due in the amount of $2,500 or 1% of the net loan amount, whichever is less.  This deposit is refundable in most circumstances.  In addition, a one-time 1/2% fee on the primary bank loan may be assessed.