SBA Loans for the next level of business.
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.
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
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;
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:
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.