Show All Answers

1. Who may borrow?

A business may be a sole proprietorship, partnership or corporation. The business should be for-profit, although non-profit corporations will be considered in exceptional circumstances.

2. How may funds be used?

Ashtabula County 503 Corporation funds may be used to finance a wide variety of business needs. This includes acquisition of real estate, machinery and equipment, and working capital.

3. What are the restrictions on funds?

The 503 Corporation can only finance up to 40% of a project. 100% financing cannot be provided. A bank or other lending source is required to participate in financing. A 10% equity contribution is required of the borrower. The financed project must create or save jobs in the community. 503 generally lends amounts between $7,000 to $150,000. Larger loans may be considered, depending on the project, need and availability of funds. Additional collateral, security interests, corporate and personal guarantees may be required.

4. What are the benefits of 503 financing?

Here is a list of benefits:

• Lower than market interest rates.
• Low application fees.
• Reasonable Loan closing costs.
• Simple application process.
• Funds can usually be dispersed within 30 days of loan approval.
• The 503 is willing to subordinate collateral position to a bank participating in the project.