Small Business Administration Loan

SBA Loan

I. 7(a) Loan Guaranty Program:

Loans may be used for any reasonable business purpose including:

Equipment, Inventory, Real estate, Franchise, Debt refinancing, Business Purchase, and/or Working Capital;

Maximum Loan Maturities:

Working Capital 5-7 years; Real Estate up to 25 years; Machinery useful life of the asset, the rest of the list has a maturity of 10 years.


Terms of less than 7 years ” Prime + 2 1/4%”

Terms of 7 years or more ” Prime + 2  3/4%

SBA loans less than $50,000 may be subject to higher business rates.

General Eligibility:

Will require a Equity investment

Must be for profit may be restricted from lending, real-estate development, investment or speculations;

Must be a small business www.sba.gov/size

Must have a solid business purpose

Good Credit

Good  Character

7 (a) Maximum Amount $2,000,000

CAPLines SBA Express Line of Credit Program: up to $350,000

  A revolving loan is similar to a credit card, with which you carry a balance that goes up or down, depending on the payments and amounts you borrow. With nonrevolving lines of credit, you borrow a flat amount and pay it off over a set period of time.

Each of the five credit lines below has a maturity of up to five years but can be tailored to the borrower’s needs

CAPLine loans provide business owners short-term credit, with loans that are guaranteed up to $2 million. There are five loan and line-of-credit programs that operate under the CAPLines umbrella:

Seasonal Credit Line: designed to help businesses during peak seasons, when they face increases in inventory, accounts receivable and labor costs;

Contract Credit Line: used to finance labor and material costs involved in carrying out contracts;

Standard asset-based Credit Line: helps businesses unable to meet credit qualifications associated with long-term credit; provides financing for cyclical, growth, recurring or short-term needs;

Small asset-based revolving Credit Line: provides smaller, asset-based Credit Line (up to $200,000), with requirements that are not as strict as the standard asset-based program;

Builder’s Credit Line: used to finance labor and materials costs for small general contractors and builders who are constructing or renovating commercial or residential buildings;

SBA guaranty’s up to 50% to the Bank;

48 hour response from SBA;

SBA Capital Funding

For as low as 2.25 over Prime!

SBA has a collection of revolving and non revolving Credit Line.

II. 504 Loan Program:

Certified Development Companies;

Maximum SBA/504 Debenture financing:


$2,000,000 For Public Policy Loan

$4,000,000 For Small Manufacture

We may see a increase in these amounts to $5,000,000 in the near future

This is all excluding the bank financing and equity contribution.

Bank financing required for 50% of the cost of the loan;

CDC/SBA may finance 30-40% of the project;

Business Normally invests 10-20% of the cost:

Fixed assets financing only, with terms 10 to 20 years with a low fixed interest. In general this loan product requires the creation of new jobs. Certain loan products may now be refinanced into a SBA 504 loan.

Patriot Express: Up to $500,000

Similar to the Express Product above but only available to the Military Community.

Loan limit is increased to $500,000.

Guaranty increase to 7(a) level

Interest rates lowered to 7(a) level

Eligibility for Patriot Express:

a. Veterans;

b. Active Service members eligible for TAP;

c. Reservists and National Guard Members;

d. Current Spouse of the above mentioned members;

e. Widowed Spouses of the above mentioned members who died during service or from service connected disabilities.

Community Express Loan Program:

Loan up to $250,000 some lenders will set lower limits.

All other 7(a) criteria applies.

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