SBA Loan Programs
- 7(A) Real Estate Loan Programs
- SBA 504 Loan Program
- USDA Business Loan Programs
- Specialty Business Financing
- Business Acquisition Financing
- Business Start-Up Financing Program
7(A) Real Estate Loan Programs
Purpose of Loan:
- Commercial real estate purchase
- Special programs to finance equipment or working capital
Size of Loan:
- Up to $2 million
- Financing packages up to $5.0 million
Cash Injection Requirements
- Minimum 10% down payment
- 100% financing program available for non-PLP loans
Terms of Loan
- Up to 25 years fully amortized, at competitive rates
Loan Fees
- SBA Guaranty Fees ranging from 1.7% to 2.6% of loan amount depending on loan size
Qualifying Requirements:
- Adequate cash flow to cover debt levels
- Acceptable credit history
Loan Turnaround Times
- 10 days for Bank approval upon receipt of complete package
- 45-60 days funding from receipt of completed application package
SBA 504 Loan Program
Purpose of Loan:
- Purchase and construction of commercial real estate
Size of Loan:
- Up to $4.5 million
Cash Injection Requirements
- As little as 10%, depending of use of proceeds
Terms of Loan
- Up to 25 years
Loan Fees
- Loan fee-generally 1.5% of loan amount
- Construction loan fees based on project size
Qualifying Requirements
- 3 years management experience or 1 year profitable business ownership experience
- Adequate historical cash flow to repay the loan
- Owner/user to occupy 51% of existing building or 67% of new construction
- Net worth of less than $6 million and net profit of less than $2 million average over the last two years
- Acceptable credit history
Loan Turnaround Times
- 10 business days for Bank approval upon receipt of complete package
- 45-60 business days funding/initial disbursement from receipt of completed application package and CDC approval
USDA Business Loan Programs
Purpose of Loan:
- Purchase or construction of real estate, machinery and equipment plus working capital
Size of Loan:
- Up to $10 million
Cash Injection Requirements
- 10 to 20% minimum cash equity depending on the project
Terms of Loan
- 7 to 30 years fully amortized, at competitive rates
Loan Fees
- Bank loan fee
- B&I Guaranty Fees are up to 2% of loan amount depending on loan size
Qualifying Requirements
- Adequate cash flow
- Minimum 10% tangible net worth
- Acceptable credit history
- Must meet USDA eligibility criteria for rural area location
Loan Turnaround Times
- 10 business days for Bank approval upon receipt of complete package
- 60 - 90 days funding from date of USDA guaranty approval
Specialty Business Financing
Purpose of Loan:
- Business start-up financing for specialty industries, including car washes, day care centers, assisted living projects, hotel/motel establishments and independent insurance agents
Size of Loan:
- Up to $2 million
- Financing packages up to $5.0 million
Cash Injection Requirements
- As little as 15%
Terms of Loan
- Up to 25 years fully amortized, at competitive rates, for real estate purchase
- Up to 10 years fully amortized, at competitive rates, for non real estate transactions
Loan Fees
- SBA Guaranty Fees ranging from 1.7% to 2.6% of loan amount depending on loan size
Qualifying Requirements
- Management experience in same or related field
- Acceptable credit history
- Minimum 10% non-borrowed cash injection
Loan Turnaround Times
- 10 business days for Bank approval upon receipt of complete package
- 45-60 days funding from receipt of completed application package
Business Acquisition Financing
Purpose of Loan:
- Business acquisition
Size of Loan:
- Up to $2 million
Cash Injection Requirements
- As little as 15%, depending on seller carry backs, collateral pledged and other credit factors
Terms of Loan
- Up to 25 years fully amortized, at competitive rates, for real estate purchase
- Up to 10 years fully amortized, at competitive rates, for non real estate transactions
Loan Fees
- SBA Guaranty Fees ranging from 1.7% to 2.6% of loan amount depending on loan size
Qualifying Requirements
- 3 years management experience or 1 year direct experience or previously owned profitable business
- Adequate historical cash flow to repay the loan
- Minimum 15% non-borrowed cash injection
- Acceptable credit history
Loan Turnaround Times
- 10 business days for Bank approval upon receipt of complete package
- 45-60 days funding from receipt of completed application package
Business Start-Up Financing Program
Purpose of Loan:
- Business start-up
Size of Loan:
- Up to $2 million with real estate purchase
- With Real Estate financing packages up to $5.0 million
Cash Injection Requirements
- As little as 20-30% subject to collateral and other credit factors
Terms of Loan
- Up to 10 years fully amortized, for non-real estate loans
- Up to 25 years fully amortized, for loans including real estate purchase
Loan Fees
- SBA Guaranty Fees ranging from 1.7% to 2.6% of loan amount depending on loan size
- Construction management fee, if applicable
Qualifying Requirements
- Industry management experience, or prior related business ownership
- Acceptable credit history
Loan Turnaround Times
- 10 business days for Bank approval upon receipt of complete package
- 45-60 days funding from receipt of completed construction application package and SBA guaranty documents
