What are the restrictions on funds?
The 503 Corporation can only finance up to 40% of a project. 100% financing cannot be provided. A bank or other lending source is required to participate in financing. A 10% equity contribution is required of the borrower. The financed project must create or save jobs in the community. 503 generally lends amounts between $7,000 to $150,000. Larger loans may be considered, depending on the project, need and availability of funds. Additional collateral, security interests, corporate and personal guarantees may be required.

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1. Who may borrow?
2. How may funds be used?
3. What are the restrictions on funds?
4. What are the benefits of 503 financing?