Change Made to SBA’s Job Creation / Retention Rule

Economic Development 300

The SBA 504 program is a business economic development loan program. SBA has defined a number of economic development criteria a small business applicant can meet in order to be eligible for 504 financing. One of these criteria, job creation and retention, has recently been changed by SBA… making it even easier for small businesses to be eligible for 504 financing. SBA’s new rule, which is in effect right now, requires one job be created or retained per $75,000 of 504 dollars borrowed. For a small business manufacturing project, the new rule requires one job be created or retained per $120,000 of 504 dollars borrowed. (The previous rule was $65,000 and $100,000 for small manufacturers.)

If the SBA 504 applicant does not meet the job creation / retention requirements, the following are a number of other eligibility criteria the project may meet:
– Rural Development (business is located outside of Sioux Falls and Rapid City in South Dakota)
– Woman-Owned Business (at least 51% ownership)
– Minority-Owned Business (at least 51% ownership)
РVeteran-Owned Business  (at least 51% ownership)
– Expansion of Exports
– Energy Efficient Business
– Business District Revitalization
– Opportunity Zones