SEDA-Council of Governments      Your Resource for Business Solutions

USDA Business and Industry Guaranty

SEDA-Council of Governments 201 Furnace Road Lewisburg, PA  17837 570-524-4491 570-524-9190 Fax 1-800-326-4086 finance@seda-cog.org http://finance.seda-cog.org Serving the following counties in PA: Centre Clinton Columbia Juniata Lycoming Mifflin Montour Northumberland Perry Snyder Union and Serving the entire State of Pennsylvania for the SBA 504 Program and USDA B&I Guaranty
		Any for-profit or non-profit business.
		Land acquisition, site improvements, acquisition of existing building, building renovation, leasehold improvements, new construction, machinery & equipment, working capital, refinancing (restrictions apply), and certain soft costs.
		80% guaranty on loans of $5 million or less; 70% guaranty on loans between $5 million and $10 million; 60% guaranty on loans between $10 million and $25 million.
		The rate is negotiated between the bank and the borrower, and may be fixed or variable. However, variable rates cannot be adjusted more than quarterly.
		Up to seven (7) years for working capital; up to 15 years for machinery and equipment; up to 30 years for real estate.
		For existing businesses (more than two years of operations) borrower must show tangible balance sheet equity in the business of at least 10%.  For start-ups or changes in ownership, borrower must show tangible balance sheet equity in the business of at least 20%. Equity is developed in accordance with generally accepted accounting principles.
		This guaranty program does not require any specific job creation or retention as part of the project.
		SEDA-COG charges a 1% application fee on projects up to $5 million, a 0.75% application fee on projects between $5 million and $10 million, or a 0.5% application fee on projects between $10 million and $25 million.  SEDA-COG also charges a $2,500 retainer fee which is refundable in most circumstances.  The USDA also charges a one-time guaranty fee of 2% of the guaranty amount and an annual 0.25% fee.

If you feel that you meet these requirements, and your business is located (or will be locating) anywhere in the State of Pennsylvania and are interested in exploring how this loan program can assist you, please fill out this form, and we will get back to you as soon as we can. You can also contact us through e-mail, although we request that for serious inquiries, completion of the form is desirable.