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Show Got Expansion Plans? Check SBA Program By TOM BUSSELBERG FARMINGTON - Many Wasatch Front businesses, busines-ses, including those in Davis and Salt Lake counties, could benefit from a new federal loan program. THE SMALL Business Administration has set up a 503 loan program for successful businesses that combines com-bines federal sources, a commercial bank and one-tenth one-tenth financing from the business itself under a seven-25-year loan program, says Douglas Dickenson, Dicken-son, economic planner with the state economic and industrial development division. "In the past, the SBA helped marginal (success) businesses. Our emphasis has now turned to successful suc-cessful businesses" that could include most businesses busines-ses across the state. To qualify, a net worth of $6 million or less is needed with a profit after tax of $2 million or less. CASH FLOW must be sufficient to pay the debt service with no interim financing provided, he told the Davis County economic development committee. com-mittee. From $ 1 0,000-5500,00 can be borrowed, with total loan guarantee provided by the SBA, he emphasized, empha-sized, noting the business must be at least three years old and that SBA's interest portion would be 1 1-1 Vh percent at current rates. Fifty percent financing would come from private sources, 40 from the SBA and 10 from the business with program's aim to create more jobs. Currently, nine projects are being considered statewide by his office that could generate 130 jobs while others in various stages could add up to 4,000 through the federal Housing and Urban Development office. ALTHOUGH for-profit businesses are generally included, those ineligible include real estate firms, developer and landlord deals, financial institutions, unregulated media and not-for-profit businesses. If a new building is involved, an eligible businesses must use 85 percent or more space while 51 percent must be used in an existing facility, Mr. Dickenson says. In addition, "there has to be one job created for every $15,000 in financing," he adds. APPLICATIONS must go through a certified development de-velopment company, with Davis and Salt Lake counties coun-ties channeled through Dcscrct Certified Development Develop-ment Co. while Provo and Ogdcn have their own firms. Although eight public hearings were held informing inform-ing potential participants of the new program, response re-sponse has been low, Mr. Dickenson says. WHILE HIS office doesn't actually provide the loans, Mr. Dickenson says he can act as a broker because of familiarity with the federal programs, indicating those interested should contact him, even for a telephone conversation, to quickly determine eligibility. Ideas must be approved through the federal HUD in conjunction with the National Development Council. Further information is available by calling 533-512V |
