Economic Development Requirements

SBA 504 is a community lending program designed to improve the locality and promote job creation. Each 504 project must meet at least one of the following three economic development objectives:

1. Creation and/or retention of one job per every $65,000 borrowed from the CDC under the SBA 504 loan program. Jobs must be created within two years of the completion of the project. (Small manufacturers must create, preserve or retain one job for every $100,000 guaranteed by SBA.)
   
   OR
   
   
2. Improvement of the economy of the locality
   
   OR
   
   
3. One of the following PUBLIC POLICY GOALS:
   
   
   • Revitalize a business community with a written revitalization plan
   • Expand exports
   • Expand minority business development (owned 51% or more by a minority business person)
   • Change necessitated by federal budget cutbacks
   • Change required by mandated standard regarding health, safety, environment
   • Increase productivity and competitiveness (retooling, robotics, or modernization)
   • Expand woman-owned business development
   • Expand veteran-owned business development