Small Business Loans now more Affordable

For businesses thinking about expanding, there’s hardly been a better time to find affordable financing.  New terms for borrowing money under the U.S. Small Business Administration’s 504 loan program make the program more attractive then ever.

As part of the American Recovery and Investment Act signed by the president in February, the SBA is paying the processing and bank fees on SBA 504 loans.  These fees, usually paid by the borrower, can add up to more than 2 percent of the loan.

The fee elimination is good through 2009 or until the funds -- $375 million – are exhausted. It’s also retroactive to Feb. 17, the day President Obama signed the economic stimulus bill.

Small businesses in Ohio have another option for low-interest-rate financing.  Manufacturers and other non-retail service businesses in the state can now access the Regional 166 Loan Program at a fixed interest rate of 2 percent.  The 166 program provides loans of up to $350,000 to businesses that create or retain jobs in Ohio.  The financing can be used to buy real estate, machinery, equipment or other fixed assets.

Both these programs are making more capital to finance fixed assets (real estate or machinery and equipment) available to small businesses at lower costs, helping small-business owners affected by the credit crunch. The Hamilton County Development Co. is pleased to be part of the solution to the economic recovery.

For more information on these programs, please call (513) 631-8292 or e-mail me at maind@hcdc.com.