By Andy Clausen, SPEDCO
SBA recently published a notification announcing they are changing the job creation and retention requirements for the 504 Loan Program by increasing the dollar amounts used in calculating the number of jobs that must be created or retained for each 504 Project and for the portfolio average of each Certified Development Company. In addition, SBA is designating additional areas for application of the higher portfolio average.
SBA is modifying the Job Opportunity requirements as follows:
For Projects in Alaska, Hawaii, State-designated enterprise zones, empowerment zones and enterprise communities, labor surplus areas (as determined by the Secretary of Labor), and for other areas designated by SBA, the CDC’s portfolio may average not more than $85,000 per job created or retained. In addition, SBA is designating “Opportunity Zones” as additional areas for which this higher portfolio average would apply. Find Minnesota Opportunity Zones.
While SBA’s easing of eligibility requirements makes it easier for borrowers to qualify, community banks can look to a partner like SPEDCO to help their project line up with SBA’s economic development goals. We can often find a way to make the project work.
Contact Andy Clausen with questions at 651-631-4900 or email him.