The SBA Pre Qualification Loan Program is available to any new or existing small business with 100 employees or less in Jefferson, Lewis, and St. Lawrence Counties. Authority staff assists prospective borrowers in developing a viable business plan that can be submitted to the SBA for a loan guaranty. On approval, Authority staff can assist the applicant in locating a lender.

Eligible Business: Most types of business are eligible except projects held primarily for investment, gambling, speculation, newspapers and non-profit organizations. All 20% owners of the business have to pass a personal resource test.

Loan Limits: Loans under this program are limited to a maximum loan of $250,000 or less.

Term: Length of repayment depends on the ability to repay, and the use of the loan proceeds. Typically, 5-10 years for working capital loans; up to 15 years for machinery and equipment; and up to 25 years for real estate.

Interest Rate: Applicants negotiate terms with the lender. Rates are tied to the prime rate, and cannot exceed maximums established by the SBA.

Collateral: Primary criteria for a pre-qualification are the ability to repay, a good business plan and good credit. Normally business assets will be pledged, and owners of 20% or more of the business are required to personally guarantee the note. The applicant must have a reasonable equity stake in the business.

Fees: There is a one-time application fee paid to the Development Authority of the North Country of $250. Additional SBA and bank fees will be applicable if a loan is actually funded.

The SBA 504 Loan Program is a fixed-asset economic development program designed to promote growth and job creation in small businesses. It provides fixed-rate, long-term second mortgage financing. It is available to any small business in Jefferson, Lewis, and St. Lawrence Counties.

Eligible Projects:

• Acquisition of land, buildings, machinery or equipment
• Building expansion
• New construction

Loan Terms:

• Machinery and equipment: 10 years
• Real property: 20 years

Interest Rates: Fixed for the life of the loan.

Collateral: SBA 504 loan is normally secured by a second mortgage on real estate and/or a security interest in machinery and equipment. Personal guarantees and key man life insurance are usually required.

Prepayment: Prepayment is allowed, subject to penalty

For more information on these SBA programs, please contact:

Michelle L. Capone
Senior Project Development Specialist
Development Authority of the North Country
317 Washington St.
Watertown, New York 13601
Phone: (315) 785-2593
TDD: (800) 662-1220