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HOME / SBA Loans  

  SBA LOANS


SBA 7(a) Loan

  1. Purchase of a real property
  2. Purchase of an existing business
  3. Expansion of the business or Start up business
  4.                 - Leasehold Improvement
                    - Machine & Equipment
                    - Furniture & Fixture
                    - Inventory
                    - Working Capital
  5. Refinance of existing debts

Learn more about SBA 504 Loan

SBA 504 Loan

  • Purchase and refinance of fixed assets, such as real estate, parking lots, utilities, and heavy machinery, construction of new facilities, or renovating and converting existing facilities.

Learn more about SBA 504 Loan

Eligible Applicants - SBA Loans Requirements

  • Business must meet SBA size standard for small business.
  • Business must be for profit, show good character, credit, management, and ability to repay.
  • Borrower must occupy at least 51% of real estate purchased or refinanced.
  • Borrower must be legal alien / U.S. citizen.
  • If startup or acquisition, borrower will be required to contribute at least 10% of the start up capital.

SBA Guaranty

  • All SBA loans are guaranteed by SBA
 

Conventional Lender

SBA

Loan Amount

Depending on Lender’s guidelines

Maximum $5,000,000

Loan Type

Commercial Real Estate

  • Commercial Real Estate
  • Business

Property Type

  • Commercial
  • Mixed-Use
  • Multi Family
  • Investment & Owner Occupied
  • Commercial
  • Mixed-Use
  • At least 51% Owner Occupied
Purpose of Loan
  • Purchase & Refinance of Real Estate
  • Purchase & Refinance of Real Estate
  • Leasehold Improvements
  • Machine & Equipment
  • Furniture & Fixture
  • Inventory
  • Working Capital
Term
  • 5 to 10 year Balloons
  • 10 to 20 year fixed
No Balloon Pmt
  • Commercial – 25  years
  • Business – 10 years
Loan to Value
  • Up to 75%
  • Up to 90%
Rate
  • Between 4.5% and 7.5%
  • WSJP + 2.75%, currently 6.0%
  • 5 or 10 year US Treasury

What Should Be Noted About SBA Loans

  • Promote Small Business
  • Adequate Cash Flow Based
  • Not Collateral Based

Why SBA for Loans?

- Advantages for Borrower:

  1. Higher up to 90% LTV
  2. No collateral
  3. Less than perfect borrower. Most credit problems may be compensated for by pledging sufficient collateral to secure the loan.
  4. For working capital loans lenders can provide loans to support increased business, relocate an existing operation, reduce account payable, etc. Repayments up to 7 years are available. You can obtain the capital you need without restrictive short repayment requirements.
  5. A borrower may use the proceeds of one SBA loan to purchase real estate, renovate it, purchase a business to occupy it, and purchase inventory and equipment to operate with.
  6. SBA offers loans to businesses that handle exports to foreign countries.
  7. SBA offers loans to acquire machinery and equipment, purchase additional inventory, expand an existing operation, or simply for working capital to help manage the day to day operations of the business.
  8. Practically any new business venture (or acquisition of the existing business) is eligible for an SBA loan, including many types of franchises, such as Dunkin Donuts, Subway, Blimpies, and etc. SBA regulations require the borrower to contribute a minimum of 10% of the overall acquisition price for real estate and 10%  of the acquisition price of the tangible assets of a business.

-  Advantages for Lender:

  1. Large portion of loan is guaranteed by SBA
  2. May be sold in the secondary market for immediate income
  3. Additional opportunity for other loan products

Additional Information

Learn more about SBA 7(a) Loans
Learn more about SBA 504 Loan
Document checklist for SBA loan
Apply for SBA Loan



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