| SBA
7 (a) Loan
Program -
Small
Business
Administration
Loan |
| Purpose: |
Real
Estate
acquisition,
construction,
refinance,
business
expansion,
recapitalization,
business
buyout,
start-ups,
working
capital, and
machinery
and
equipment
purchase |
| Loan
Amount: |
7(a)
loans from
$200,000 to
$2,000,000
May be
combined
with
Conventional
loans up to
$2,500,000,
for a
maximum loan
of
$4,500,000 |
| LTV: |
Up
to 90% |
| Collateral: |
First
lien or UCC
filings on
assets
purchased
with loan
proceeds.
Additional
collateral
can be used
to secure
loan.
| |
| Interest
Rate: |
Floating
rate, up to
2.75% over
WSJ prime,
adjusted
quarterly |
| Term: |
| Real
Estate
acquisition,
construction,
refinance |
25
years |
| Business
acquisition
(non-real
estate) |
10
years |
| M
&
E |
Up
to
15
years |
| Working
Capital |
7
years |
|
| Prepayment
Penalty: |
For
loans over
15 years: 5%
in year 1,
3% in year
2, 1% in
year 3.
May prepay
up to 25%
during first
3 years
without
penalty.
No
prepayment
penalty for
loans less
than 15
years. |
| SBA
Guarantee
Fee: |
Ranges
from 1 to
3.5% of the
guaranteed
portion of
the loan and
varies
depending
upon the
total loan
amount.
| |
| Lender
Fee: |
No
lender
points
| |
| Recourse: |
Full
guarantee of
all
principals.
| |
| Debt
Service
Ratio: |
Adequate
repayment
ability must
be
demonstrated
historically
or a
detailed
projection
must be
provided.
| |
| Diversity: |
Nationwide
to a variety
of
industries.
| |
| Financial
Data: |
| Business: |
Three
years
of
historical
Federal
tax
returns.
Three
years
financial
statement
(if
available).
Interim
financial
statements
(within
90
days
of
submission).
One
year
of
projections
for
existing
business
or
two
years
for
start-ups.
| |
| Personal: |
Three
years
of
tax
returns
and
financial
statements
of
owners
with
20%
or
more
ownership
| |
|
|
Third
Party
Reports:
|
Appraisals
and
Environmental
| |
| Summary: |
The
7(a) Loan
Guaranty
Program is
the SBA's
most widely
used lending
program.
Most small
businesses
meet the SBA
eligibility
requirements
for this
government
guaranteed
program.
However,
applicant
businesses
must operate
for profit,
be engaged
in or
propose to
do business
in the
United
States or
its
possessions,
and have a
reasonable
owner equity
position.
| |
|
We encourage
you to apply
online for a
quick
pre-qualification
through our Get
A Loan
page.
|
|
Go
back to the Products
page. |
