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Loan Type
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SBA Express Loans
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SBA 7(A) Loans
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SBA 504 financing
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Loan Benefits
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Good source of long term financing for working capital needs.
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Excellent source for flexible use of proceeds. No balloons or calls and provides highly leveraged financing.
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An excellent long term fixed rate product.
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Eligibility
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Borrower(s), Business and Use of Proceeds all need to be eligible. Business need to be over 18 months. Owners should be either US citizens or Green card holders.
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Borrower(s), Business and Use of Proceeds all need to be eligible. Owners should be either US citizens or Green card holders. Foreign aliens qualify if they own less than 49% of the business.
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Small business concern must occupy at least 51% and use the property along with meeting federal business size standards. It should not have sales of over $6 million or employ more than 500 employees.
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Use of Proceeds
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Usually used for financing working capital needs or for buying equipment.
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Financing for long and short term assets used in the normal business operations. Acquisitions and refinances are eligible, and may include real estate and business goodwill. Working lines of credit up to $100,000 are also eligible.
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Used to finance long term assets like real estate or equipment.
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Loan Amounts
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Up to $350,000. Loans up to 100,000 do not require any income proof.
Loans above $100,000 require last 2 yrs of business and personal tax returns on all principals having more than 20% stake.
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Up to $2,000,000
Loans require last 3 yrs of business tax returns, real estate schedule if applicable and 2 yrs of personal tax returns on all principals having more than 20 % stake.
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1st Mortgage = No Limit
2nd Mortgage
- $1,500,000 - Standard
- $2,000,000 - Public policy goal
- $4,000,000 - Manufacturing
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Rate structure
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Rates adjust quarterly, indexed off the Wall Street Journal Prime rate. Typical rates vary from prime plus 1 to prime plus 4.
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Rates adjust quarterly, indexed off the Wall Street Journal Prime rate. Typical rates range from Prime plus 1 to prime plus 2.
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1st Mortgage = both fixed and adjustable rates are available.
2nd Mortgage = Fixed rates only.
Typical rates are around prime minus 1 on fixed rates.
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Typical Loan Amortization
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Up to 7 years, fully amortized. Typical loan term is around 3 to 5 yrs with an option to roll over up to 7 yrs.
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Amortization depends on the use of proceeds. Loans amortize from 7 to 25 years. Loans are fully amortized with no Balloons or Calls.
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1st Mortgage loan provides a maximum amortization of 25 years.
2nd Mortgage loan provides a maximum amortization of 20 years.
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