Purchasing or Constructing a Building

Monroe County has multiple programs to help local companies grow.

SBA 504 Loan Program

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
Land Purchase  $100,000
Building Construction $400,000
Equipment 0
Soft Costs 0
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
Total $500,000
*SBA Fees
Net Proceeds $200,000
CDC Processing Fee (1.5%) $3,000
Closing Costs $2,500
Reserve Fee (0.5%) $1,000
Funding Fee (0.25%) $500
Subtotal $207,000
Underwriting Fee (0.4%) $832
Total $207,832
Gross Debenture (rounded up) $208,000

*Fees subject to change.