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.
