Ocean State Business

Development Authority, Inc.

SBA 504 Loan

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Economic Development Requirements

The 504 is a loan program designed to help small businesses expand and to promote economic development, therefore the SBA requires that projects financed by the program result in the creation or saving of jobs, at a certain ratio of jobs to dollars of the SBA’s guaranty.

In general one job must be retained or created within two years of project completion for each $50,000 in 504 funds or meeting other economic development goals such as:

• Manufacturers (NAICS codes 31-33).

• Exporters (10% or more of sales).

• Minority-owned businesses (51% or more).

• Project in state-designated enterprise zones, empowerment zones and enterprise communities or areas with written redevelopment plan.

• Change necessitated by federal budget cutbacks.

• Increase productivity & competitiveness (retooling, robotics or modernization).

• Expand woman-owned business development.

• Expand veteran-owned business development.

• Projects which will provide significant community benefit (economic diversification or stabilization, stimulating other business development, or bringing new income into the community), which can be demonstrated by letters of support from community officials

• Assist businesses in a labor surplus and rural areas.