Eligibility - California Small Business Loans and Financing - SBA 504
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Enhancing Cash Flow
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Any type of for profit small business with either: net worth under $7.5 million and net profits after taxes under $2.5 million for the preceding two years.
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The business must plan on using the loan proceeds for capital investment (land, building, leasehold improvements, renovations, construction, machinery and associated soft costs). Proceeds from loan may not be used for working capital.
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The business being financed must have a 51% occupancy. Two or more unrelated businesses may receive a 504 loan to buy or build a building if together they meet the above occupancy requirements.
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50% of the financing must come from the private sector with 10% from the business or its owner. The SBA 504 loan finances the other 40% with a dollar cap of $1,500,000 (Maximum of $2,000,000 allowed if certain requirements are met).
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The project must also meet the following economic requirements:
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Job creation or retention-one job per every $50,000 borrowed from CDC under SBA 504
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Aiding rural development
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Change necessitated by federal budget cutbacks
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Increase productivity & competitiveness (retooling, robotics, or modernization) |
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Expand veteran-owned business development |
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Revitalize a business district of a community with a written revitalization or development plan |
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Expand exports |
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Expand woman-owned business development |
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The SBA 504 program is designed to improve and to stimulate business in the local community by helping diversify, improve or stabilize the local economy. Other goals include bringing new income into the community, assisting in production of manufacturing firms and assisting businesses in labor surplus areas.
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