MCIDC Business Financing Programs

SDC MORTGAGE LOAN

Description:

Low interest rate loans for the acquisition, renovation, or expansion of real estate, facilities for use primarily by the applicant.

Eligibility:

Small privately held companies looking for finance real estate projects. Normally, these will be for manufacturers/industrial users, but exceptions may be made for office, retail, and on occasion, investor projects. Machinery and equipment may also be considered.

Eligible Uses:

Permanent financing for the acquisition, renovation, or construction of real estate projects.

Amounts:

Forty percent of the eligible cost not to exceed $400,000. (This typically means a $1,000,000 project.)

Terms/Conditions:

Under the SDC program, SDC would lend a minimum of $50,000 to a maximum of $400,000 in participation on a larger loan with any of the pre-approved banks, State or Federal lending agencies (see attached list) or with any other lender approved by SDC.  Where warranted, SDC would lend directly to an Applicant up to $400,000 without the involvement of the above referenced participants provided the minimum and maximum lending criteria are applied consistently. The bank loan(s) would be at rates of interest negotiated directly with your bank.  The SDC interest rate will be established from time to time by the SDC and may change based on market conditions. The current SDC interest rate is equal to the yield on the Five-Year Treasury Note plus 225 basis points with a minimum of 5.00%.  Once the loan has been funded, the SDC interest rate will then be reset every five years thereafter at a rate equal to the yield on the Five-Year Treasury Note plus 225 basis points but in no event will that reset rate be lower than the initial rate of the loan.  The duration of the SDC participating first mortgage loan would match that of the participating first mortgage bank loan, but not longer than 10 years with a loan amortization schedule of up to 20 years.

Advantages:

This program allows flexibility to the small business owner that most state and federal programs do not have.

Where to Apply: MCIDC/SDC office 610-272-5000.

Click Here to download the SDC Guidelines, Instructions and Fees
Click Here to download the SDC Application
(You must have Adobe Acrobat Reader installed in order to view the above files.
If you do not have the program, you can download it for free by clicking here)