SBA Loans

 

7(a) Loan Programs.

The 7(a) loan program is made through the Small Business Administration (SBA) guaranteed loan program. For loan amounts of $100,000 to $5,000,000.

 

ELIGIBLE BUSINESSES AND PROPERTY TYPES

Almost any type of for-profit business is eligible. Commercial real-estate must be partially occupied by borrower and includes, but is not limited to, the following types of properties:
 

Hotels and Motels

Gas Stations

Office Buildings 

Warehouses

Industrial Buildings

Manufacturing

Child Care Facilities

Car Wash Facilities

Automotive Repair

Shops

Professional Buildings

Restaurants

Bed and Breakfasts

Franchises

Single-Use Buildings

 

USE OF PROCEEDS

Real-estate acquisition, construction, or refinance - up to 90% financing available
Business Acquisition - up to 80% financing available
Equipment Acquisition - up to 100% financing available
Debt Refinance -up to 100% financing available

TERMS

Up to 25 years for real-estate financing
Up to 10 years for equipment or business acquisition financing
 All loans are fully amortized.

INTEREST RATES AND FEES

Interest rates are always market competitive. Fees are generally limited to the SBA guaranty fee and customary closing costs.

 

 

504 Loan Programs.

Also made through the SBA loan program, these loans are for amounts of up to $10,000,000.

 

BORROWER BENEFITS

Low down payment of only 10%
Long repayment terms – reducing monthly payments
Frees up cash flow to expand your business
Many rate options including long term fixed rates
Associated fees and soft costs may be financed in the loan.
 

USE OF PROCEEDS

Purchase, refinance, construction, or renovation of owner-occupied commercial real estate
Purchase and installation of long-life machinery and equipment.
Standard Loan Structure
50% financing  First mortgage from Conventional Lender
40% financing  SBA 504 second mortgage (provided through a local Certified Development Corporation)
10% minimum down payment by the borrower (15% in the case of special use properties)
 

TERMS

First mortgage
Up to 30 years, fully amortized
Competitive rates available
Prepayment penalty applies & is set based on various factors
Second mortgage
20 years, fully amortized
Fixed rate is determined at SBA-guaranteed 504 debenture sale
Fees set by CDC
Prepayment penalty for initial 10 years, none after the end of year 10
 

PRE-SCREEN
Pre-screen service available within 24 hours with no charge or obligation by providing limited information.