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 Purpose
• 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

Fees
SBA 504 processing fees average 3 percent of the JEDCO/SBA portion of the project. These fees are financed as part of the project.

Review
JEDCO reviews/approves the 504 application before processing by SBA. SBA review period averages five days from receipt of the completed application.