Business Finance
Monthly Newsletter

Volume: 7 Issue: 1                                                                                       February 2016

Photo credit: Yorktown Pools & Spas Facebook and website.

The Zech brothers have a lot more cash in hand and time to focus on their business, thanks to a business-friendly loan through SEDA-Council of Governments (SEDA-COG).
Joshua and Micah Zech were looking for a loan that let them put less down and keep more cash for their growing business, Yorktown Pools & Spas. SEDA-COG's Business Finance Department helped them get a Small Business Administration (SBA) Grow Loan (formerly known as 504), which requires less down than a traditional loan - 10 percent compared to up to 25 percent.
The $278,000 loan helped the Zechs buy a larger building to house their business. Their parents were the prior owners, but the business had grown a lot since 1979 when it was first acquired.
"This loan helped us sleep better at night with less worry, having more money available for the business," Joshua Zech said. "I'd recommend the Grow Loan to anybody, and it's really enjoyable working with SEDA-COG's Business Finance Department staff, Ray Haden and Jim McClure."
After the Zechs bought the growing business from their parents in 2010, they had to split up the three departments into two different buildings, despite being one operation. The retail side stayed in the original building while the construction and service branches moved to a warehouse several miles away.
This distance cost the business valuable time, so they used the Grow Loan to buy a larger building to house all branches in one location at 4350 W. Market St., York.
"This loan gave us a larger building where we could consolidate our service, construction, and retail branches back into one central location," Joshua Zech said. "This means a lot less travel time between branches and less shuffling of inventory, paperwork, and employees. Sometimes we had to run things two to three times a day between the two locations. Each run was about 20 minutes."
M&T Bank provided a $347,500 loan to complete the $695,000 project. The bank has worked with SEDA-COG for years to assist bank customers with expansion projects.
This project was a great example of the benefits of the combined financing between M&T Bank and SEDA-COG's SBA Grow Loan, said Sharon Kebil-Whisler, M&T Bank vice president and senior relationship manager.
"The (SBA Grow Loan) program is very helpful in facilitating long-term, fixed-rate financing, and preserving cash. The 10 percent down also helped the business use its cash flow for moving expenses and relocation costs," Kebil-Whisler said. Read more [here]. 

M&T Bank has worked with SEDA-COG on several occasions over the past several years to assist bank customers with expansion projects. 

The recent project for the Yorktown Pools & Spas building purchase was a great example of the benefits of the combined financing between M&T Bank and SEDA-COG's SBA Grow loan program (formerly the SBA 504), said Sharon Kebil-Whisler, M&T Bank vice president and senior relationship

"The program has been very helpful in facilitating long-term, fixed-rate financing. The 10 percent down was very helpful as the business utilized their cash flow for moving expenses and relocation costs," Kebil-Whisler said. "The financing achieved was an SBA Grow loan in the amount of $278,000 to supplement the permanent financing completed with the bank. The program is very favorable for borrowers in preserving cash and long-term financing."

M&T Bank Corporation is a regional financing services company with more than $120 billion in assets. They provide banking, insurance, investments, mortgage and commercial financial services through more than 800 branches, 1,600 ATMS, and a variety of online and mobile services.
Founded in 1856 in Buffalo, New York, M&T Bank is a community-focused bank that serves customers in Pennsylvania, New York, Maryland, New Jersey, Delaware, Connecticut, Virginia, West Virginia, and Washington, D.C.

NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the effective interest rate for the 20-year debentures had a slight decrease from 4.60% in December to 4.59% for January.  The 10-year effective rate for January is currently 4.60% which is a decrease from December's 4.67%.

The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of 2.80%, which is a decrease from December.

To learn more about the SBA 504 loan program for owner-occupied real estate or equipment financing in Pennsylvania, visit

The SBA has released the guidelines for the reauthorization of the 504 Debt Refinancing Program.  The SBA began accepting applications on June 24, 2016.
The following are some of the eligibility requirements to refinance existing debt through the SBA 504 loan program:
  1. Borrower must be in business for at least 2 years.
  2. Loan(s) to be refinanced must have been incurred at least 2 years ago.
  3. At least 85% of the proceeds of the loan(s) to be refinanced had to be originally used for eligible fixed assets.
  4. Borrower has been current on all payments of the loan(s) for the past 12 months.
  5. May include the financing of eligible business expenses as part of the refinancing.
  6. Loan(s) to be refinanced cannot be subject to a guaranty by a Federal agency (i.e. SBA 7(a), SBA 504, or USDA) and cannot be a Third Party Loan which is part of an existing SBA 504 project.
For more information on whether a loan might qualify for an SBA 504 Refinancing project, visit or contact one of our staff.

Loan Rate
SBA 504
Jan. 10-year
SBA 504
Jan. 20-year
Through March 31, 2017
SEDA-COG TEAM 4.00% Through March 31, 2017

Want to know more about the SBA 504 loan program including eligibility, benefits to the bank and borrower, and other important information?  Then check out the blog section of our website here.

SEDA-COG's Business Finance Department serves the entire state of Pennsylvania for the  SBA 504 Program .

SEDA-COG serves an 11-county area in Central Pennsylvania including Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union counties.  

For more information, visit  or .

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Contact our Business Finance staff today! 

John K. Reichard, Sr. Relationship Manager II

Ray Haden, Sr. Relationship Manager I

201 Furnace Road | Lewisburg, PA 17837| 570-524-4491