| SBA 7(a) Loans |
SBA 504 Loans |
USDA Business and Industry (B&I) |
Use of Proceeds
- Purchase, construction, expansion or refinance
- Equipment purchase or refinance
- Leasehold improvements
- Working Capital/Inventory
- Business Acquisition
- Franchise Financing
- Debt consolidation
- Acquisition, expansion, or renovation of owner occupied commercial real estate
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Use of Proceeds
- Real estate purchase, construction and refinance
- Equipment purchase
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Use of Proceeds
- Business and industrial acquisitions, construction, conversion, expansion, repair, modernization or development costs.
- Purchase of equipment, machinery or supplies.
- Startup costs and working capital.
- Processing and marketing facilities
- Pollution control and abatement.
- Refinancing for viable projects, under certain conditions.
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Benefits
Higher Loan to Value compared to conventional financing
Longer maturities and amortizations
No balloon payments
Reduced monthly payments
Competitive rates
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Benefits
Higher Loan to Value compared to conventional financing
Long term maturities
No balloon payments
Reduce monthly payments
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Benefits
Higher Loan to Value compared to conventional financing
Longest maturities and amortizations
Reduce monthly payment
Owner user or investment property
Small markets OK
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Loan amountUp to $5 million
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Loan amountUp to $14 million
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Loan amountUp to $10 million
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Max LTVUp to 90% financing
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Max LTVUp to 90% financing
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Terms
Up to 25 years, fully amortized
Loan terms determined by proceeds:
- Up to 25 years for real estate purchase
- Up to 10 years for business acquisition, equipment, leasehold improvements
- Up to 10 years for franchise/business startups
- Up to 5 – 7 years for working capital
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Terms
Bank First Mortgage
- Up to 25 years, fully amortized
SBA Second Mortgage
- 20-25 years, fully amortized
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Terms
- Maximum term on machinery and equipment is its useful life or 15 years, whichever is less
- Maximum term for real estate is 30 years
- Maximum term on working capital not to exceed 7 years
- Loans must be fully amortized; balloon payments are not permitted
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Rates
Fixed and variable rate options
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Rates
Fixed and variable rate options
Up to 25 year fixed rate on SBA 2nd mortgage
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Rates
Interest-only payments may be scheduled in the first 3 years
Fixed and variable rate options
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Prepayment Penalties
- Loan term 15 years or greater = 5% in year one, 3% in year two, and 1% in year three.
- Loan term less than 15 years = No prepayment penalty.
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Prepayment PenaltiesPrepayment penalties apply to the Bank loan and the SBA loan.
Typically 10 year declining |
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Eligibility
- After tax income less than $5 million on average over last 2 years
- Tangible net worth of business less than $15 million.
- Manufacturing - 500 to 1,500 employees
- Taxes must be current
- Owner user projects only, no investment deals
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Eligibility
- Project must be at least 51% owner occupied if existing building; 60% owner occupied if new construction
- After tax income less than $5 million on average over last 2 years
- Tangible net
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Eligibility
- Any area other than a city or town with a population of greater than 50,000 inhabitants and the urbanized area of that city or town.
- Any legal entity, including individuals, public and private organizations, profit or non-profit and federally recognized Indian tribal groups, may qualify.
- There is no size restriction on the businesses.
- Local economic development organizations and investors can be considered
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