Purpose:

To assist small business formation and expansion, thereby creating new jobs.

General Eligibility:

The SBA 504 is designed to meet the start-up and expansion needs of for-profit corporations, partnerships and proprietorships with a new worth smaller than $6 million and after-tax profit under $2 million in each of the last two years.

• The loan program is available for land, buildings, construction, renovation, machinery and equipment and all other associated project costs except bank loan processing fees.
• SBA 504 funds not available for refinancing, working capital or inventory.
• Project must create or retain jobs, qualify as a "community project," or address an SBA national objective.
• Projects utilizing the SBA 504 program must be located within the City of Des Moines.
• Ineligible businesses include financial institutions, investment and real estate companies, developers and landlords, unregulated media and not-for-profit companies.

Terms and Conditions:

• Maximum SBA 504 involvement is 40% of project cost, not to exceed $1,000,000. (No maximum total project cost.)
• Loan term is 10 or 20 years.
• Historically, the fixed interest rate on the SBA 504 portion of the project financing has been lower than market rates.

Required Information:

The paperwork required is virtually the same as most lenders.

For additional information, please e-mail OED@dmgov.org or call (515) 283-4004.