SBA LOANS

WE OFFER THREE TYPES OF SBA LOANS

An SBA LOAN is a business loan guaranteed by the U.S. Small Business Administration. Contrary to popular belief, the SBA does not actually lend directly. Rather, the SBA establishes guidelines for participating lenders and guarantees a portion of the loan, up to 85%, which lessens the risk for the lender, and increases the likelihood of approval.

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SBA 7(A) Loan

  • Funding Amount: Up to $5M
  • FICO Score: 675
  • Time in Business: 2 Years
  • Funding Time: 45 - 60 Days
  • Term Length: 10 - 25 Years

WHAT YOU NEED TO KNOW

The SBA 7(a) Loan is the most popular SBA loan program mainly because of its flexibility and wide range of acceptable uses. For loans $50,000 – $350,000 you can usually access funds with no personal collateral if you have an existing business. While the standard 7(a) loan, goes all the way up to $5 million, you will see more stringent credit requirements and sometimes takes up to 60 days to fund. The 7(a) small loan, which only goes up to $350,000, can be fast-tracked by the lender with somewhat relaxed requirements if the application passes the SBA pre-screen process. If it doesn’t pass the pre-screen process, the application will simply have to enter the standard 7(a) underwriting process. Purchasing a building & need working capital? Run a blended SBA loan for terms ranging from 10-25 years!

Uses

  • Refinance Debt
  • Purchase Building
  • Equipment
  • Inventory
  • Leasehold Improvements
  • Startups
  • Acquisitions
  • Working Capital
  • Operational Expenses
  • Hiring
  • & More!

SBA Express

  • Funding Amount: Up to $500K
  • FICO Score: 675
  • Time in Business: 2 Years
  • Funding Time: 2 - 6 Weeks
  • Term Length: 10 Years

Uses

  • Business Expansion:
  • Working Capital
  • Marketing
  • Hiring
  • Misc. Operational Expenses
  • Minor Leasehold Improvements

WHAT YOU NEED TO KNOW

If you need quick cash, an SBA Express Loan might fit the bill. The main difference between a standard underwriting & express SBA loan is the use of funds limitations. These programs usually require less documents & is the path of least resistance in the SBA space, going up to $350,000. These loans generally come with no personal collateral. Applications usually receive a pre-approved credit decisions within 48 hours and have an average funding turnaround of about 30 days, which is a considerably faster funding speed than 7(a) loans.

SBA 504

  • Funding Amount: Up to $9M
  • FICO Score: 650
  • Time in Business: 2 Years (Preferred)
  • Funding Time: 60 - 120 Days
  • Term Length: 25 Years

WHAT YOU NEED TO KNOW

The SBA CDC/504 Loan is used to acquire fixed assets or improve existing assets (certain soft costs can be included as well) and has many benefits like 90% financing, no balloon payments, long amortizations (up to 25 years), and fixed low mid-single digit interest rates. The SBA bank only provides 50% of the funding while an SBA-approved certified development company provides 40%, which means the borrower must have the ability to provide a 10% down payment. Much of the underwriting focuses on the project costs, and since the approval process involves two lenders, the bank and the CDC, instead of just one, funding usually takes longer than the SBA 7(a) and Express programs. This is a great program for folks paying a lot in rent & looking to replace that with a fixed monthly payment. (in most instances rent can be added back to increase cash flow when running EBITDA calculations)

Uses

  • Purchase long-term equipment
  • Refinance debt from facility renovation, equipment refurbishing, and/or business expansion
  • Acquire an existing building
  • Buy land or finance land developments like landscaping, creating new parking lots, and grading
  • New facility construction or existing facility renovation

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