Monroe County has multiple programs to help local companies grow.
The SBA 504 Loan Program provides long-term financing for the purchase of land, buildings and equipment at a fixed-rate of interest.
Funding for SBA 504 loans is provided through a partnership between the SBA and a private sector lender such as a bank.
Under a typical SBA 504 scenario:
- 50% of the financing for the project is provided by a bank at rate determined by the bank
- 40% is provided by the SBA through the Monroe County Industrial Development Corporation (MCIDC) in the form of a fixed-rate SBA guaranteed debenture
- 10% in equity is provided by the business.
The SBA can guarantee payment of debentures for as little as $50,000 and up to $5,500,000 (for qualified manufacturing projects.)
Documents Required to Apply:
- Description of project to be financed
- Last three years financial statements, including corporate federal tax returns
- Interim financial statement within 60 days of application
- Accounts receivable and accounts payable aging within 60 days of application
- Two years of projected balance sheet and income statement with assumptions
- Personal financial statement and federal tax returns for the last year of any shareholder with 20% or more ownership
Sample SBA 504 Project
|Use of Proceeds|
|Total Project Cost||$500,00|
|Source of Funds|
|Bank - 50% - 1st Mortgage||$250,000|
|SBA - 40% - 2nd Mortgage||$200,000|
|Equity - 10%||$50,000|
|Other - 0% - 3rd Mortgage||0|
|CDC Processing Fee (1.5%)||$3,000|
|Reserve Fee (0.5%)||$1,000|
|Funding Fee (0.25%)||$500|
|Underwriting Fee (0.4%)||$832|
|Gross Debenture (rounded up)||$208,000|
*Fees subject to change.