A private lender typically provides up to 50 percent of the funding, the SBA provides up to 40 percent, and the business provides 10 percent. The MEDC tailors financing packages to meet program guidelines based on the business credit. Loan terms are 10 or 20 years. Loans can not be used to finance working capital. For-profit commercial and industrial businesses located in Hennepin County that qualify as a small business according to SBA guidelines are eligible for an SBA 504 Loan.
Guidelines vary by industry.
Contact the MEDC for more information. When purchasing existing buildings, the small business must occupy at least 51 percent of a structure. For new construction, the small business must occupy 60 percent of the structure initially and plan to occupy at least 20 percent more within three to 10 years. Year-end balance sheet and profit and loss statement for the previous three years. Projected income statement for the next two years.