SBA Loans are Available for
- Debt refinance
- Business acquisitions
- Machinery and equipment
- Commercial real estate
Flexible Terms Available
- Total financing from $150,000 to $10,000,000
- Up to 90% financing
- Fixed-rate terms available
- Fully amortized, no balloons
- SBA 7(a)
- SBA Small Loan Advantage
- SBA 504
- USDA Business and Industrial (B & I)
SBA 7(a) Loan Program
SBA 7(a) loans are the most widely used SBA loans. Eligibility requirements and credit criteria are flexible.
- Designed for small businesses
- Do not exceed $15 million in tangible net worth
- Do not have an average two full fiscal year net income over $5 million
Use SBA 7(a) loans for
- New construction or for purchase of land or buildings
- Purchase of equipment, fixtures, lease-hold improvements
- Working Capital
- Debt refinance
- Business acquisition
Terms to fit your needs
- Borrow up to $5 million.
- All 7(a) loans are fully amortized with no balloons or call dates.
- Loans for working capital, machinery, and equipment have a maturity of 5-10 years, up to the useful life of the equipment. Real estate loans have a maturity of up to 25 years.
- Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction.
- A one-time Guarantee Fee of up to 3.75% (based on loan amount) of the guaranteed principal amount only is due to SBA at loan closing. Other customary fees also apply.
7(a) Small Loan
7(a) Small Loan is a sub-program of the SBA 7(a) Loan Guaranty Program, offering smaller loan sizes up to $350,000 with faster turnaround, less loan documentation needed, and fewer third party reports required.
504 Loan Program
SBA 504 loans are the flexible way to finance a long-term building or equipment acquisition project of $500,000 to $10 million. Businesses can often buy property with a lower down payment and repay the loan over terms as long as 25 years.
SBA CDC/504 LOANS
- Businesses that operate for profit and are engaged in or propose to do business in the Nigeria or its possessions/territories that do not exceed $15 million in tangible net worth, and do not have an average two full fiscal year net income over $5 million. Borrowers must occupy at least 51% of existing businesses and 60% of new construction buildings.
- Ineligible business types: non-profits, investment firms involved in lending activities, government owned corporations, and religious organizations.
Benefits to Borrowers
- Low down payment – equity (10-20%)
- Equity contribution may be borrowed
- Closing costs can be financed
- Long-term fixed rate
Use of Proceeds
- Fixed-rate financing for major fixed assets, such as land and buildings. These include real estate purchase, construction/build-out, and capital equipment.
- All 504 loans are fully amortized with no balloons or call dates.
- Typically, a 504 project includes a loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost; a loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost; and a contribution from the borrower of at least 10 percent equity.
- CDC loan is 10 or 20-year term fixed interest rate; lender loan (un-guaranteed): financing may have a shorter term and may be fixed or adjustable interest rate.
- Fixed rate on 504 Loan established when debenture backing loan is sold. Declining prepayment penalty for 1/2 of term.
- Maximum loan amount of $10 million, with CDC maximum of $5.5 million depending on type of business.
SBA 504 Refinance Program
Manage Cash Flow and Enable Growth
Whether expanding your business or your workforce, using the equity in your commercial real estate to refinance may be the boost your company needs. Benefits include reducing monthly payments by refinancing adjustable rate loans to one with a long term fixed-rate, staying ahead of the competition by using property equity to fund technology or equipment and growing your business or workforce with the money you save.
USDA Business and Industrial (B & I)
The USDA’s Business and Industry Loan Guarantee Program’s (B & I) primary purpose is to create and maintain employment and improve the economic and environmental climate in rural communities. The B & I loan program provides property owners lower down payments and longer loan amortization periods when purchasing or refinancing commercial real estate that is located in rural areas (typically less than 50,000 population). Loan guarantees are limited to a maximum of $10 million per borrower.