Small Business First (SBF)

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Eligible Applicants – For-profit small businesses involved in:

Agricultural enterprise/production

Computer related services
Daycare operations
Defense Conversion
Hospitality (Must be in business for 5 years with 5 full-time employees)
Manufacturing
Other Industrial Enterprises
Construction
Recycling

A small business is defined as having 100 or less full-time employees.

Eligible Use – May utilize funding for land acquisition, site improvements, acquisition of existing building, building renovation, leasehold improvements, new construction, machinery and equipment, working capital, and certain soft costs .

Loan Amount - $200,000 or 50% of the eligible project costs, whichever is less. Loans for working capital cannot exceed $100,000.

Interest Rate – Interest rates are low and fixed for the life of the loan.  Rates are updated on a quarterly basis and have historically been below 5%.  To find out the current please contact CCED.

Term – Up to 3 years for working capital; up to 10 years for machinery and equipment; up to 15 years for real estate.  A blended term will apply for mixed funds.

Equity Requirement – For existing businesses (more than two years of operations), borrower must provide a minimum of 10% of the project cost.  For start-ups or changes in ownership, borrower may be required to provide 15% of the project cost. Other factors of the loan may reduce the need for equity into the project.

Job Criteria – Within three years of disbursement, one full-time job to be created or, in some cases retained, for every $25,000 of SBF funds used in the project.

Fees – $250 non-refundable application fee.  In addition, a 1% closing fee and $650 for document preparation are charged (other closing costs generated as a result of the transaction such as appraisal fees are the responsibility of the borrower)   

For further assistance or additional information, please contact

Angela Aldrich

Economic Development Specialist
(717) 240-7183
angela@cumberlandbusiness.com