Our Small Business Administration (SBA) loans are the perfect solution for your business. Please read more about each of our offerings, and learn more about the eligibility requirements and uses.

SBA Loan Details


SBA 7a Small Loans
A bank term loan with a partial government guaranty:

  • 85% on loans up to $150,000
  • 75% on loans over $150,000
  • Maximum loan size of $350,000

Plus:

  • Up to a 1 year draw period, term out over remaining term
  • The maximum term is based on the use of funds, and can be used for any eligible purchase
  • Simpler underwriting and collateral requirements (for most borrowers)
  • Must meet SBA’s minimum Small Business Credit Score and demonstrate the ability to repay from business’ cash flow to qualify

All eligible uses of funds except temporary working capital (revolving loan structure):

  • Purchasing a business
  • Purchasing inventory or equipment
  • Purchasing real estate
  • Constructing a building
  • Funding tenant improvements
  • Providing working capital

 



SBA 504 Loans

Part bank loan and part bond financing provided by sale of 100% SBA-guaranteed bond (debenture) into the capital markets, fully amortizing 20-year fixed loans:

  • The bank loan has no specified limit, but is typically limited to 50% of the project costs, with the SBA debenture covering the next 30% – 40%, and borrower equity of 10% – 20%
  • SBA’s portion is limited to $5,000,000 aggregate SBA outstandings (for most borrowers), but can be expanded to $5,500,000 per project for manufacturers or projects that include small scale renewable energy production
  • Maximum project size can exceed $15,000,000

May only be used for owner-occupied real estate and equipment projects. Can be used as permanent financing after conventional construction financing or draw financing to build and install equipment:

  • 20 year bond for real estate projects
  • 10 year bond for capital equipment projects
  • 10 year full term bank portion fully amortizing for equipment
  • 10 year term with 20 or 25 year bank portion amortization for real estate

Structure:

  • Part bank loan and part bond financing. Bond funds are provided by sale of 100% SBA-guaranteed bong (debenture) into the capital markets, fully amortizing 20-year fixed loans.

Use of funds:

  • May only be used for owner-occupied real estate and capital equipment projects.

Minimum required down payments:

  • 10% for existing businesses purchasing general purpose real estate or equipment
  • 15% for businesses less than 2 years old purchasing general purpose real estate or equipment
  • 15% for existing businesses purchasing limited purpose real estate (beginning 1/1/2018, 20% will be required for borrowers with existing SBA 504 loans)
  • 20% for businesses less than 2 years old purchasing limited purpose real estate


Typically, the project collateral is the only required collateral, but additional collateral may be required during construction.

 



SBAExpress Lines of Credit
A bank revolving line of credit with partial government guaranty:

  • 50% on loans up to the maximum of $350,000
  • Maximum 10 year term
  • Structured with up to a 5 year revolving period followed by a 5 year term loan, with annual reviews

Plus:

  • An annual review to inspect usage of line, ability to repay, and adverse changes in borrower or guarantor, and will determine whether the line is:
    • Automatically renewed as a revolving line for the next year
    • Converted to term over the remaining term
  • Collateral is typically a first lien on accounts receivable and inventory, plus a lien on other business assets
  • Typically not available to new businesses, a 7a term loan will be used instead

These funds are eligible for funding temporary working capital needs based on accounts receivable and inventory.

 



Veteran’s Advantage Program
A special program offering guaranty fee discounts to businesses 51% or more owned by veterans and/or their spouses. For fiscal year ending 9/30/2018:

  • No fee SBA Express Loans up to $350,000
  • No fee SBA 7a Small Loans up to $125,000
  • SBA 7a Small Loans and Large Loans up to $350,000 (50% discount on the normal guaranty fee)


SBA 7a Large Loans

A bank term loan with a partial government guaranty:

  • 75% on loans from $350,000 to $5,000,000

Plus:

  • Up to a 1 year draw period, term out over remaining term
  • The maximum term is based on the use of funds, and can be used for any eligible purchase
  • Collateral requirements include:
    • 1st lien on assets purchased with proceeds, plus worthwhile assets
    • If not fully secured, a lien on the owners’ personal real estate and life insurance may be required

All eligible uses of funds except temporary working capital (revolving loan structure):

  • Purchasing a business
  • Purchasing inventory or equipment
  • Purchasing real estate
  • Constructing a building
  • Funding tenant improvements
  • Providing working capital

 



SBA Working Capital CAPlines
A bank revolving line of credit with partial government guaranty: 

  • 75% on loans up to the maximum of $5,000,000

Plus:

  • Can be renewed annually for up to 10 years under the same up-front guaranty fee
  • Lines up to $1,000,000 must be fully secured with accounts receivable and inventory under a borrowing base or with fixed assets or real estate without a borrowing base
  • Lines over $1,000,000 must be fully secured with accounts receivable and inventory under a borrowing base

 



International Trade Loans
A bank term loan with partial government guaranty:

  • 75% for mixed use loans or loans used for working capital
  • 90% of loans used for real estate or fixed assets
  • Maximum loan size of $5,000,000

Plus:

  • Up to 1 year draw period, term out over remaining term
  • The maximum term is based on the use of funds. These loans can be used for any eligible purchase, except temporary working capital
  • Collateral requirements include:
    • 1st lien on assets purchased with proceeds, plus worthwhile assets
    • If not fully secured, a lien on the owners’ personal real estate and life insurance may be required
  • Require business plan documenting how the funds will help the business expand export markets or respond to foreign competition

 



SBA Export Express
A bank revolving line of credit with partial government guaranty:

  • 75% on loans over $350,000
  • 90% on loans up to $350,000
  • Maximum 7 year term
  • Structured with up to a 3 year revolving period followed by a 4 year term loan, with annual reviews
  • Maximum loan size of $500,000

Plus:

  • Funds may be used to support export sales
  • An annual review to inspect usage of line, ability to repay, and adverse changes in borrower or guarantor, and will determine whether the line is:
    • Automatically renewed
    • Converted to term
  • Collateral is typically a 1st lien on accounts receivable and inventory, plus a lien on other business assets
  • Typically not available to new businesses, a 7a term loan will be used instead
  • Requires business plan documenting how the funds will help expand export sales

These funds are eligible for funding temporary working capital needs to support export sales.

For more information about our Small Business Administration loans please contact one of our Small Business Administration experts, or send us your contact information and we’ll reach out to you.