SBA 504 Loan Program 
This loan program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from JEDCO (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the business. The maximum "504" loan amount is $1.3 million.
Objective
To promote economic development by providing financing to existing businesses in Jefferson Parish.
Eligibility
- For-profit business
- Must be located in Jefferson Parish
- Requirement is creation/retention of one job per $50,000 in SBA 504 assistance
Loan Purposes
- Land/building acquisition
- Renovations
- New construction
- Purchase equipment
- Professional fees related to project
Loan Size
$50,000 - $2 million
(Loans to manufacturers up to $4 million)
Typical Structure
- 50% from a Bank or other lender (Collateral: First Lien Position)
- 40 % from SBA 504 Debenture (Collateral: Second Lien Position)
- 10 % from Equity
Term
- 10 years on equipment
- 20 years on real estate
