When loan interest rates started to climb, Millerstown farmer Jeremy Sensenig was glad he had locked in his loan's rate through SEDA-COG at 2.5 percent for 7 years.
This provides cash flow and stability for his 127-acre farm where he built two pullet houses with the $400,000 SEDA-COG Pennsylvania Industrial Development Authority/Small Business First loan. BB&T Bank completed the $1 million project with a $615,400 loan.
"A neighbor sold us the land for a pretty decent price, but I needed cash flow or I couldn't keep the whole property," Sensenig said. "It's mostly timber, but there is some tillable ground. This was the first step for property cash flow."
The pullet houses help him fulfill a contract with Hy-Line. He helps 1-day-old chicks grow for about four months, and when the hens reach 2.5 pounds and the roosters get to 3 pounds, they're transferred to laying houses (on another farm) for egg production.
Sensenig's past electrical work experience was useful for his chicken barns. He installed the electrical system in the pullet houses and a computer system with Internet access so he can control the barn settings with his smartphone and computer. He can remotely adjust the temperature, ventilation, fan timer, and more.
He does three daily walk-throughs starting at 6 a.m., and a few of his seven children help him with the noon walk-through. His final walk-through is around 6 p.m.
The loan and cash flow allows Sensenig more time to focus on his father-son ministry, Moriah Ministries, where he helps fathers and their children build good relationships to avoid future destructive behavior.

Read more here.

Blog feature: Ag Lending with the SBA 504 Loan Program
For those familiar with SBA 504 financing, the type of borrower that would most likely come to mind that would qualify for a 504 loan would be a manufacturer or a service-related business.  However, SBA 504 loans can be used to finance agricultural enterprises as well.  This blog talks about how an SBA 504 loan can benefit ag lenders as well as farmers. - more
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. 

NADCO, the trade association for the nation's Certified Development Companies (CDCs), reports that the effective interest rate for the 20-year debentures decreased from 4.67% in May to 4.60% for June. The 10-year effective rate remains at 4.51% for June.

The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of 2.81%, which is a decrease from May.
For more information about financing real estate projects in Pennsylvania using the SBA 504 program, visit www.sedacogldc.org or contact one of our staff.

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:


  • Borrower must be in business for at least 2 years.
  • Loan(s) to be refinanced must have been incurred at least 2 years ago.
  • At least 85% of the proceeds of the loan(s) to be refinanced had to be originally used for eligible fixed assets.
  • Borrower has been current on all payments of the loan(s) for the past 12 months.
  • May include the financing of eligible business expenses as part of the refinancing.
  • 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 www.sedacogldc.org or contact one of our staff.

SBA 504
June 10-year
SBA 504
June 20-year
Through June 30, 2017
Through June 30, 2017

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 www.seda-cog.org/finance  or www.sedacogldc.org.

Contact our Business Finance staff today!

Senior Relationship Manager II
Senior Relationship Manager I

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