Over the course of its nearly 60-year history, the Chester County Economic Development Company (CCEDC) has utilized a variety of loan programs to help businesses in Chester County and the surrounding region start or grow.  It does this through its affiliate entity – South Eastern Economic Development Company of Pennsylvania (Seedcopa).

Seedcopa was formed in 1983 to facilitate the SBA 504 financing program and has grown to include SeedcoDE which handles loan programs in neighboring Delaware.

Recently, Seedcopa shared that the SBA 20-year fixed rate dipped to a new historic low which is great news for potential borrowers.  Before June and July 2019, the previous record low for the SBA 504 loan’s 20-year effective rate was last set in December 2012, when it reached 4.01%.

“Right now we’re supporting the first round of small business borrowers to benefit from fixed interest rates below 4% in the 504 program’s history,” says Sherwood Robbins, managing director of Seedcopa + SeedcoDE. “It’s an exciting time for business owners who can finally take the plunge and buy new real estate, upgrade existing facilities or purchase equipment and machinery.”

Key Features of the SBA 504 Loan Program

• Used for owner-occupied commercial land, property, construction or equipment with total project costs from approximately $200,000 to approximately $15,000,000.
• Facilitated by SBA-certified development companies like Seedcopa + SeedcoDE.
• Typically, small business borrowers make a 10% equity injection, a bank or credit union finances another portion of the project cost, and a CDC, through the SBA,  finances another portion of the project cost guaranteed by the federal government.
• 10, 20 and 25-year fixed rate options

For more information on how to attain an SBA 504 loan, e-mail Sherwood Robbins or call 610-321-8241.