With the recent funding of projects early in 2015, YCEA’s total SBA 504 closed loan balance with EDC Finance Corporation has eclipsed the $5 million mark. In 2014, several key projects received SBA 504 approval including Wyndridge Farms, Star Light Diner and Centurion Construction, as YCEA continues to ramp up promotion of this valuable financing option for small businesses. As a quick summary to the YCEA / EDC Finance partnership, YCEA and EDC Finance Corporation (EDC Finance)
SBA 504 loans allow small businesses to finance up to 40% of their real estate and equipment projects through a fixed rate loan that is subordinated to the bank’s participation in the project. For-profit businesses that have a tangible net worth < $15 million as of their last fiscal year end and a 2 year average net income (after taxes) of < $5 million are considered “small” by SBA 504 standards. If the business happens to exceed one of those categories, not to worry. Certain industries (mainly related to manufacturing) have alternate size standard options that focus on the number of employees instead of the size of the company’s financial statements. The best way to find out more about SBA 504 financing is to call Kenetha Hansen at 717.718.7841.
The York County Economic Alliance supports the repeal of the Medical Device tax as was contained in and enacted as part of the Patient Protection and Affordable Care Act (PPACA). Furthermore, the Economic Alliance has been actively supporting its repeal since March 2013. The medical device tax is a 2.3 percent excise tax based on the price for which the medical device is sold, to be paid by either the U.S. importer (foreign manufactured) or the U.S. manufacturer (U.S. manufactured medical device) effective since January 1, 2013