Sussex County Economic Development

Who is eligible?

Qualified, existing businesses in operation for at least 2 full years with 10 to 500 full-time employees (subject to the SBA size standards by industry). Real estate
investment or development projects and financing entities are not eligible. The business must have the following public benefits:

• Creation and retention of permanent, full-time jobs
• Serve businesses located in Sussex County economic development zones within the grid

How much can be borrowed?

Loans can range from $250,000 to $1,000,000. However, the amount a business can borrow is subject to underwriting guidelines and availability of funds.

How can the loan be used and what are the repayment terms?

• Machinery & Equipment – to be paid over 10 years
• Real Estate Acquisition and/or Renovation – to be paid over 25 years
• Tenant improvements – to be repaid over the life of the lease

Is there an application fee?

There is no application fee.

Are there closing costs?

• Once the loan is approved, the applicant pays a 1% deposit at commitment letter
  signing for appraisal, legal, and other costs incurred prior to closing
• SBA guarantee of 2-3%
• All closing costs may be financed through the loan

What is the interest rate?

• The effective rate interest will be determined based on the current market effective rate at the time the complete application is received.

What guarantees and collateral are required?

• Personal guarantees are required from any individual with > 20% ownership of the business
• Security interest in all available collateral
• For real estate: flexible loan-to-value, depending on underwriting

What reporting is required?

Grow America Fund meets with every business annually. Financial statements and/or tax returns shall be provided at least annually.