The small business owners can see a new window of hope with the SBA loan, basically made for the small business entrepreneurs. We make the SBA loan available for you within a short time span and with our extended years of expertise. Whenever it requires taking the small businesses forward, the United States Small Business Administration takes a stand and back the financing for giving you the best solution from the day it established in 1953. Two of the most special services provided by the SBA are SBA 7(a) and SBA 504. Availing the most beneficial loan services will give you new aspects of success in the business as these two have gigantic advantages over the traditional funds including:

  • Prolonged repayment terms: It means you have to pay low monthly payment
  • Minimum down payment option: It makes your upfront prices more affordable for you.
    From initiating business to expanding it successfully, SBA commercial loans help you in all possible ways.

Lending Guidelines

SBA-504 LOAN SBA 7(a) LOAN
LOAN SIZE Minimum – $125,000 Maximum – $10 million Minimum – $50,000 Maximum – $5 million
INTEREST RATE • Fixed • Predominantly variable; some fixed-rate options
TERMS • 20 years – real estate • 10 years – equipment • Up to 25 years – real estate • Up to 10 years – business acquisition, equipment • 5 to 7 years – working capital • Weighted average for mixed-use requests
LTV Up to 90%DOWN PAYMENT • 10% borrower • Minimum 10% borrower(often more)Up to 90%
 SBA-504 LOAN  SBA 7(a) LOAN
ELIGIBLE BUSINESS SIZE • Business net worth not to exceed $15 million • Average net profit after taxes for 2 consecutive years not to exceed $5 million • Determined by industry type • Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture • Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing
LOAN STRUCTURE • 50% bank loan • 40% CDC loan • 10% borrower down payment • Loan structure negotiable; dependent on risk • 10% down payment (minimum)
PROCEEDS USE • Purchase existing building • Land acquisition and ground-up construction (can include soft cost development fees) • Expansion of existing building • Finance building improvements • Purchase equipment • Expand, acquire or start a business • Purchase or construct real estate • Refinance existing business debt • Buy equipment • Provide working capital • Construct leasehold improvements • Purchase inventory
PROGRAM REQUIREMENTS • 51% owner occupancy for existing building • 60% owner occupancy for new construction • Equipment must have minimum 10-year economic life • 51% owner occupancy for existing building • 60% owner occupancy for new construction • All assets financed must be used to the direct benefit of the business
COLLATERAL • Generally, project assets being financed are used as collateral • Personal guaranties of the principal owners of 20% or more ownership are required • Subject assets acquired by loan proceeds • Pledge of personal residence unless bank can justify why unnecessary • Personal guaranties of the principal owners of 20% or more ownership are required
FEES • Fees are financed in the 504 loan • Fees are negotiated for the 50% bank loan • Servicing fee (lowest allowed by SBA) for CDC plus a legal review fee • Fees can be financed in the 7a loan • Fees vary with the size of loan paired with 504 loan • Additional .25% charged on any loan portion above $1 million
Closing Time: As soon as 45 days As soon as 45 days