Small Business Administration Loans
SBA 7a Program
Borrower Benefits
- Long repayment terms, reducing monthly payments
- Frees up cash flow to expand your business
- Down payment as low as 10% on multi-purpose real estate acquisitions and as low as 15% on single-purpose real estate acquisitions
- Financing available for most industry types including: hotel/motels, gas station/convenience stores, restaurants and day care centers
Loan Amounts
$100,000 to $2.0 million
Use of Proceeds
Real estate: purchase, construction, renovation or refinance of commercial real estate. Majority of space must be owner-occupied. Loans up to $2.0 million
Business acquisition: business, franchise or professional practice. Loans up to $2.0 million
Machinery & equipment: purchase or refinance. Loans up to $1.5 million
Start-up: franchised businesses such as restaurants and hotel/motel. Loans up to $2.0 million
Terms
Real estate - up to 90% financing, up to 25 years, Prepayment penalty for initial 3 years, none after the end of year 3
Business acquisition - up to 80% financing, up to 10 years, No prepayment penalty
Refinance – up to 100% financing, up to 25 years, Prepayment applicable for initial 3 years on terms greater than 15 years
Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction
SBA Guarantee Fee is paid directly to U.S. Small Business Administration. Amount varies based on loan/guarantee amount. Other customary fees also apply
All 7a loans are fully amortized and are assumable
SBA 504 Program
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
Use of Proceeds
Purchase, construction or renovation of owner-occupied commercial real estate
Refinancing of existing debt is not permitted with a 504. Please refer to SBA 7a for refinance transactions
Standard Loan Structure
50% financing - First mortgage (up to $5 million)
40% financing - SBA 504 second mortgage (SBA/Certified Development Corporation provides up to $2 million)
10% minimum down payment by the borrower (15% in the case of special use properties)