A Business loan made by an SBA Direct Preferred Bank with a portion of the loan guaranteed by the U.S. Government.

Benefits of an SBA loan:

• Longer Maturities - Up to 25 years for Real Estate
• Lower Equity Requirements as low as 10% down for purchase of Real Estate
• Lower Debt Service Coverage Requirements
• Less Restrictive Collateral Parameters

Typical qualifying guidelines:

• Company in business for at least one year
• Debt service coverage of at least 1.25x for the last fiscal year
• Management capability
• Good personal predit on anyone owning more than 20% of the company
• Size of borrower varies depending on industry, generally revenues of $5 million or less for Retail and 500 employees or less for manufacturing
• Loan size $100,000 to $2 million for non-real estate purposes and up to $4 million for real estate

Two Programs are offered by the SBA including:

• 7(a): Real estate and/or general purpose needs
• 504: Real estate

What kinds of loans will the SBA guarantee?

• Purchase of owner occupied real estate
• Construction and expansion of business premises
• Purchase of machinery and equipment, furniture and fixtures, and leasehold omprovements
• Business acquisition
• Debt refinancing
• Working capital

Purchase of existing real estate:

• New construction 7(a) and 504: Owner must occupy 60% usable space immediately and may lease up to 20% long term. Reasonable growth projections must support borrower's plan to begin occupying the remaining space within 3 years and must occupy the remaining space within 10 years.
• Existing building: Owner must occupy 51% of usable space. Circumstances of the business and/or real estate conditions may justify a grace period of up to 1 year to meet occupancy requirements.

Cash injection:

• 7(a): Minimum Cash Injection of 10%. May be able to use other collateral (i.e. equipment) in lieu of cash injection.
• 504: Minimum Cash Injection of 10%. An additional 5% is required if the applicant is a start up business or the property is considered Single or Limited Use.

Competitive variable and fixed rates available.