SBA Loans

The Small Business Administration (SBA) has a number of financial programs for small businesses.

 

The 7a Loan Program is most commonly used to purchase a business, or expand an existing businesses.  Loan amounts range between $100k to $5 million dollars.  The loan application process can take 30 to 60 days to process. The maximum rate is 2.75% above prime. The SBA provides the lender with an 85% guarantee for loans up to $150,000 and for loans greater than $150,000 the guarantee is 75%.

 

Read more on the SBA website.

 

The 7a Loan Program:

 

  • Funding Start Up Costs of New Business

  • Construction of a New Building

  • Refinance of Business Debt

  • Working Capital

  • Purchase of Commercial Real Estate

  • Tenant Improvements

  • Equipment Financing

  • Inventory

 

Eligibility Requirements:

 

  • Strong personal credit

  • Industry experience of 2 years

  • May need to provide collateral

  • Usually 20% to 30% down

  • Written Business Plan

  • Provide 3 years of tax returns

  • Personal financial statement

  • A updated personal Resume

 

The 504 Loan Program offers long-term financing used to acquire real estate or equipment for expansion or modernization. The borrower is expected to come up with 10% and the bank takes a first mortgage of 50%.  The remaining 40% is raised by sale of debentures that provide the borrower with a 20 year fixed rate.  Most 504 projects are in the $200 k to $5 million plus range.

 

Read more on the SBA website.

 

The 504 Loan Program:

  • Start up or expand an existing business

  • Funding for franchises

  • Purchase real estate

  • Equipment financing

  • Longer terms for expansion projects, equipment or real estate purchases

 

Contact Provident Business Brokers today for more information on SBA Loans.

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