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Re: SBA Pollution Control Guarantees
Chapman, Spira & Carson - Disscusion

From: Chapman Spira and Carson
Date: 4/30/99
Time: 6:49:49 AM
Remote User:


This tidbit from the SBA shows how many thing are covered by their SBA Loan Guarantee Program Chapman Spira and Carson LLC Loan Guarantees SBA Pollution Control Loans

-------------------------------------------------------------------------------- PROGRAM: SBA Pollution Control Loans AGENCY: Small Business Administration (SBA)

DESCRIPTION: Guarantee of loans made by a lender to small businesses to finance the planning, design or installation of a pollution control facility.


A pollution control facility is defined as real orpersonal property which is likely to help prevent, reduce,abate or control noise, air or water pollution orcontamination by removing, altering, disposing or storing pollutants, contaminants, wastes or heat and such real orpersonal property which will be used for the collection,storage, treatment, utilization, processing or final disposal of solid or liquid waste. Any related "resource recovery" property (recycling)is eligible when such property is stated to be useful for pollution abatement by a local, state or federalenvironmental regulatory authority.


Maximum Program Benefits: Loans are guaranteed up to$1 million, less the outstanding balance of any SBA loanguarantee.

Maturities: Up to 25 years for fixed asset financing

Rates: Are fixed or variable and indexed to the New York prime rate. Up to 2.25% over prime for loans of less than seven years and 2.75% over prime for loans of seven years or more. QUALIFICATION CRITERIA / COMMENTS:

The SBA defines a small business as follows:

Manufacturing - Maximum number of employees mayrange from 500 to 1,500 depending on the productmanufactured

Wholesaling - Maximum number of employees may notexceed 100

Services - Average annual receipts may not exceed$3.5 million to $14.5 million, depending on the industry

Retailing - Average annual receipts are between$5.0 million to $21.0 million, depending on the industry

General construction - Average annual receiptsmay not exceed $7 million to $17 million, depending on theindustry

Special trade construction - Average annualreceipts may not exceed $7 million, depending on theindustry

Agriculture - Average annual receipts range from$500,000 to $9 million, depending on the industry.

In addition to the normal submission requirements, applicants must provide plans and/or specifications for the pollution control facility, along with written, realistic cost estimates. Copies of any local, state or federal environmental regulations that relate to the proposed facility should be provided with the application.

Requests for financing require a completed application including financial sources and uses of funds, pro forma, management plan and resumes of the borrowers.

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Last changed: September 26, 1999