"I'm the third-generation dairy farm. My grandfather milked here, my dad milked here, now I am."

Garrett Moyer grew up always wanting to farm. After high school, he worked in construction, but the life of independence that farming offers still called out to him.
When he was 20, he bought some cows and equipment and started getting his own milk check, along with continuing to help his parents with their dairy operation in Middleburg.

But he could already tell it wouldn't be enough.

"The milk industry has too many ups and downs. Back in the day, a family could live off of milking cows. That's not the case, anymore," Moyer said. "Dairy's going out more and more every year. I think with the farming life, anymore, you have to have other sources of income to make it."

After considering some options, he saw that a hog finishing barn would be his best choice to supplement his family's dairy farm because the contract through Country View offers a steady paycheck.

Now, at 26, Moyer is fulfilling and continuing his lifelong goal of farming with a loan partnership with SEDA-COG and First National Bank of Mifflintown. SEDA-COG's $200,000 Small Business First loan and FNB's $900,000 loan helped make the $1.1 million project possible. 

Tina Shirey, assistant vice president of Commercial Lending at FNB of Mifflintown, said they were pleased to offer a loan that was beneficial to the Moyers.
"The First National Bank of Mifflintown was pleased to work with SEDA-COG to make the hog operation a reality of the Moyers," Shirey said.

Moyer's parents, Darren and Debra Moyer, contributed real estate equity from their farm to complete the funding package.

"I always wanted to farm, my whole life. This gives me a better opportunity to stay in it and with peace of mind," Moyer said. 

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 increased from 4.63% in April to  4.67% for May. The 10-year effective rate decreased from 4.82% in March to  4.51% for May.

The debentures that funded this month's 20-year 504 loans were sold to investors at an interest rate of  2.88%  , which is an increase from April.

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.

Loan
Rate
Effective
SBA 504
4.51%
May 10-year
SBA 504
4.67%
May 20-year
SEDA-COG RLF/PIDA
4.00%
Through June 30, 2017
SEDA-COG TEAM
4.00%
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
Principal Program Analyst

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