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SBA 504 Program
The
SBA 504 loan is designed specifically to finance fixed assets purchases such as a new building or a large piece of equipment. This loan program works as a partnership between the bank and an approved SBA lending
partner licensed by the Small Business Administration to provide a highly leveraged, competitively priced loan option to your small business.
Some highlights of the SBA 504 Loan Program include:
- Down payment as low as 10% preserving vital working capital, 90% Loan to Cost.
- Low fixed and variable rates available
- Long-term, fully amortized loans with no balloon payments
- Project amounts up to $10,000,000
- Real estate must be 51% owner occupied for existing buildings and 60% owner occupied for proposed construction
Eligible Borrowers:
- For-profit, non-publicly traded businesses.
- Tangible business net worth (including affiliates) not to exceed $8.5 million.
- Average net income of the business not to exceed $3 million over the previous two years.
- Personal liquidity of each principal/guarantor not to exceed the total project costs of the proposed 504 loan.
- Ownership must be comprised of 51% U.S. citizens or resident aliens (Legal Permanent Residents).
Ineligible use of Funds:
- Refinancing (unless debt has been in place for less than 9 months).
- Working capital.
- Inventory.
- Rolling stock.
Ineligible Borrowers:
- Non-profits (except sheltered workshops).
- Passive holders of real estate and/or personal property.
- Lending institutions (mortgage brokers and correspondent lenders are eligible).
- Life insurance companies (however, franchised agents are eligible).
- Businesses located in a foreign country or owned by aliens.
- Businesses selling products/services through a pyramid plan.
- Gambling concerns.
- Businesses engaged in promoting religion.
- Consumer and marketing cooperatives (producer cooperatives are eligible).
- Businesses engaged in loan packaging.
- Businesses that have previously defaulted on a Federal loan.
- Businesses engaged in political or lobbying activities.
SBA 7(a) Program
SBA 7(a) loans can be used for nearly any
legitimate long term business borrowing need. Examples of typical loan uses include the purchase, construction or improvement of owner-user commercial real estate, business acquisition, business expansion, equipment
purchase, debt refinance, working capital, and business start up.
Some highlights of the SBA 7(a) Loan Program include:
- Financing options unavailable under conventional terms
- Long-term financing (up to 25 years)
- Fully amortized loans with no balloon payments
- Low down payment to conserve working capital
- Loan amounts up to $2,000,000
- Quick approvals and closings.
USDA B&I Loan Program
This program is designed specifically
to assist the borrowing needs of businesses located in rural areas, (outside a city with a population of more than 50,000 people and its urbanized periphery). The goal of the program is to encourage commercial
financing to rural businesses.
Some highlights of the B & I Loan Program include:
- Loan amounts up to $5,000,000
- Down payment as low as 10%
- Long term, fully amortized loans with no balloon payments
- No minimum owner occupancy requirement
Contact us or a Free Quote or more information.
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