Programs - Frequently Asked Questions

Growth Capital exists to assist the small business owner in obtaining government assisted financing to create an attractive long term, fixed rate-financing structure together with a participating bank.

DOES MY BUSINESS QUALIFY FOR THE SBA 504 LOAN PROGRAM THROUGH GROWTH CAPITAL?

	Is my business located in Ohio?
Answer:	If yes, Growth Capital will be able to assist in your financing needs.
	Is the intended use of the SBA loan proceeds for fixed assets? This would include land and/or building purchases, building renovations, new construction or long-term capital equipment purchases?
Answer:	If yes, Growth Capital is able to assist in your financing needs. The SBA 504 loan program can only finance fixed assets. Under the 504 program, state prevailing wage rates do not apply on building renovation or construction projects. Inventory or working capital cannot be financed under this program.
	How do I determine if my business is considered a "small" business under the SBA 504 program guidelines?
Answer:	The U. S. Small Business Administration's definition of a small business is a for-profit company with a tangible net worth not exceeding $7 million and a net profit after tax of $2.5 million or less when averaged over the last two years.
	Will this project create at least one new job for every $50,000 of SBA 504 funds?
Answer:	SBA 504 funds are to be used in projects that create or retain jobs. The job creation ratio is 1 new job for each $50,000 of SBA 504 funds. In certain instances job retention or specific public policy goals may apply. Call Growth Capital for a determination.
	Will my business occupy more than 51% of the available space in an existing building or at least 67% of the available space in a newly constructed building?
Answer:	If yes, then Growth Capital is able to assist in your financing needs. SBA 504 funds are not to be used for speculative real estate investment; Real Estate must be owner occupied.
	Is my business able to secure long-term, fixed rate bank financing for 90% of my total project costs?
Answer:	If no, then the SBA 504 loan may be your answer to financing up to 40% of your costs with SBA funds in conjunction with a bank loan for 50% of your financing needs. This structure can provide your business with 90% financing and therefore minimizing your down payment requirement to 10%. And remember, the interest rate on SBA 504 loan will be fixed for the loan term of either 10 or 20 years.

Please contact us should you have any questions related to the above topics or to further pursue your financing options.

We look forward to hearing from you.

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