In 1981, the U.S. Small Business Administration (SBA) launched the 504 Program to help small businesses reach their full employment potential. It is a fast-growing, flexible business finance program. SBA 504 loans are for businesses to build or improve their fixed assets - mainly real estate and equipment. The terms of the loan are 20 years for real estate and 10 years for equipment. CEI is licensed as a Certified Borrower by the SBA to administer the 504 Program in Maine, and is the largest CDC based in Maine.
CEI's active portfolio includes over 100 current borrowers consisting of over $30 million dollars in loans. Across the U.S. more than 11,800 businesses, including manufacturing, retail, and service, have taken advantage of over $2.8 billion in program financing.
The SBA 504 program is an ideal way of financing properties and equipment with a lower down payment than many banks offer. Businesses are also able to lock in their financing at a fixed rate of 10 or 20 years.
Eligibility for SBA 504 Loans
Almost all for-profit owner-operated Maine small businesses are eligible. The 504 Program can lend you up to 40% or up to $1,500,000 and go up to $2,000,000 (in certain conditions) of the total financing. For Manufacturing we can go up to $4,000,000.
The tangible net worth of the business cannot exceed $7 million and the previous two years net profit after taxes cannot exceed $2.5 million.
Minimum project size: $125,000
Eligible Uses of SBA 504 Loans
Land acquisition and improvement
Building construction and addition
Purchase and/or remodeling of existing buildings
Purchase and installation of machinery and equipment (must have a useful life of 10 years or more)
CEI's experienced development staff help applicants obtain funds by:
Reviewing program guidelines
Packaging applications and reducing paperwork
Assisting in negotiations with other lenders ensuring quick turn-around
U.S. Finance Expert Encourages Banking Investment in Maine Communities At CEI's 32nd Annual Meeting, Ellen Seidman, Exec. VP of ShoreBank in Chicago, and Sr. Research Fellow with the New America Foundation in Washington, DC, urged Maine bankers and community activists to consider “greater community investment…meeting the actual needs of the community, not just counting dollars invested.” See full speech.
See annual meeting remarks by Ron Phillips, CEO, on triple bottom line investing and the next 5 years for CEI…
See the 12/14/09 article on CEI and the state of investing in communities. It’s where mission happens…
CEI Receives $125 Million in NMTC Through its subsidiary, CEI Capital Management LLC, CEI will use the allocation to attract private capital investments for primarily rural economic development projects. See press release here.
CEI Receives Investment Funds In partnership with Manufacturers Association of Maine, CEI will receive $765,000 over from the Federal Department of Health and Human Services, Office of Community Services (OCS), to finance several job-generating small-to-medium enterprises. This funding will create 78 full-time, year-round jobs. Read press release here.
Bangor Savings Bank and CEI offer low-interest loans to small and medium-sized enterprises in disadvantaged areas in Maine. Read more here.
36 Water Street, PO Box 268, Wiscasset, ME 04578; Telephone: 207/882-7552; FAX: 207/882-7308; E-mail: cei@ceimaine.org
Finance Your Business 
In 1981, the U.S. Small Business Administration (SBA) launched the 504 Program to help small businesses reach their full employment potential. It is a fast-growing, flexible business finance program. SBA 504 loans are for businesses to build or improve their fixed assets - mainly real estate and equipment. The terms of the loan are 20 years for real estate and 10 years for equipment. CEI is licensed as a Certified Borrower by the SBA to administer the 504 Program in Maine, and is the largest CDC based in Maine. 
Eligibility for SBA 504 Loans