Loan Programs
Programs
Max Loan Amount
% of Guaranty
Typical Use of Proceeds
Maturity
Max Interest Rates
Eligibility
Benefit to Borrower/Business
- 7(a)
- Up to $5 Million Gross
- -85% for $150,000 or less
-75% for $150,001 or greater ($3.75million MAX guaranty) - Term Loan. Expansion/ Renovation; new construction, purchase land, buildings, equipment, fixtures, leasehold improvements; working capital; refi debt; seasonal LOC, inventory
- Working Capital: 5-7 years
Equipment Loans: up to 10 years (unless useful life is longer than 10 yrs)
Fixed asset loans: up to 25 yrs - Loans less than 7 years: max Prime + 2.25%
Loans 7 yrs or more: max Prime + 2.75%
Loans under $50,000 may be subject to higher interest rates - Must be a for profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must also be an eligible business.
- Long-term financing; Improved cash flow; Fixed Maturity; No Balloons; No Prepayment penalty for loans w/ a term under 15 years.
- SBA Express
- $350,000
- 50%
- May be used for revolving lines of credit (up to 7 yr maturity) or for a term loan
- -Revolving lines of credit for up to 7 years including term out period. Otherwise, same as 7(a).
- Loans $50,000 or less; prime + 6.5%; Loans $50,000 & over; Prime + 4.5%
- Same as 7(a)
- Fast turnaround with a streamlined process; Easy to use line of credit
- 504 Loans
(Provided by Certified Development Companies (CDCs) Which are licensed By the SBA) - $5Million to $5.5Million
(Depending on type of Business) - Project costs financed as follows:
-CDC: up to 40% Non-guaranteed financing
Lender: 50%
Equity: 10% plus additional 5% if new business and/or 5% if special use property - Long-term fixed asset loans; Lender (non-Guaranteed) financing secured by first lien on project assets.
CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien. Owner Occupied. - -CDC Loan: 10 or 20 year term w/ fixed interest rate.
Lender Loan: (unguaranteed) financing may have a shorter term. Can be fixed or adjustable rate. - Fixed rate on 504 loan established when debenture backing loan is sold.
Declining prepayment penalty for ½ of term. - Alternative Size Standard: For-Profit Businesses that do not exceed $15 million in tangible net worth, and do not have average net income over $5 million.
- -Low down pmt/equity (10-20%)
-The equity contribution can be borrowed
-Fees can be financed
-SBA portion: Long term fixed rate; full amortization; No Balloons
- **Additional Programs are available, please conact Strategic Banking Partners at [email protected] for further information.**
- Source: Strategic Banking Partners / U.S Small Business Administration – Quick Reference Guide www.sba.gov
Strategic Banking Partners Inc was created on a simple premise.....As SBA Consultants, we challenge ourselves to provide solutions for our clients that are timely, reliable, efficient and improve their bottom line. Our unique backgrounds as bankers and SBA Lenders over a combined 30 year span have given us the perspective necessary to be exceptional partners to our clients. We pride ourselves on delivering results that inspire confidence from our clients to enter the SBA lending market.
