Ocean State Business

Development Authority, Inc.

SBA 504 Loan

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Financing Method

The bank’s loan and the 504 loan together can provide up to 90% financing of multi-purpose facilities to existing businesses with a successful track record. (More equity [5%] will be required for start-ups) The 504 loan usually cannot exceed $1,000,000 or 40% of total eligible project cost, whichever is less, and go up to $1,300,000 under the following conditions:

• Assistance in rural areas

• Exports expansion

• Minority ownership

• Business district revitalization

• Federally mandated OSHA and environmental changes

• Increasing productivity and competitiveness (retooling, robotics, etc.)

• Businesses effected by Federal budget reductions