Catawba COG SBA 504 Program
The SBA 504 Business Loan Program provides partial financing for land, buildings, and machinery and equipment. SBA 504 funds range from $50, 000 to $5, 000, 000 and are available to businesses in South Carolina. These funds generally can be used, in conjunction with bank financing, to fund up to 90% of eligible project costs.
The SBA funds up to a maximum of 40% of the project. A competitive interest rate and 10, 20, or 25 year term can significantly lower overall debt service providing improved cash flow for the business. The interest rate is fixed for the term of the loan.
Current interest rates for October 2020 are: 25 year – 2.430%, 20 year – 2.396%, 10 year – 2.288%
For profit industrial, commercial, service, and retail companies are eligible for SBA 504 funds. Job creation is a key component to the program, requiring creation of one permanent job for every $75, 000 of SBA funds loaned.
- Loan Amounts – $50, 000 – $5, 000, 000 (Manufacturing firms up to $5, 500, 000)
- Interest Rate – Fixed
- Term – 10, 20, or 25 years
- Maximum Loan Amount – Up to 40% of Project
- Legal Fees – Varies
- Prepayment Penalty – Applies only during first half of loan term
- Job Creation – One permanant job within 2 years for every $75, 000 of SBA 504 funds loaned, may be less if the project meets federal public policy goals
Uses for Loan Funds – Land, Building Construction, Building Expansion, Machinery, and Equipment.
For additional information on the SBA 504 Program, please contact Randy Pellisero or Ed Brock at 803-327-9041.