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SBASmall Business Administration (SBA) Loan
SBA 7a Loan Program
SBA 7a loans are designated exclusively for "for profit" businesses and may be used for any legitimate business purpose. With this program, the SBA may guarantee up to 85% of the loan, depending on the amount. Proceeds can be used for business acquisition, tenant improvements, working capital, equipment/machinery purchase or commercial real estate acquisition.
- $25,000 to $2,000,000
- Interest rates are tied to Prime, plus a spread of .5% to 4%
- Loan terms vary by the loan type and borrower repayment ability
- Loan terms on real estate loans may be up to 25 years
SBA 504 Loan Program
The 504 loan is available for existing "for profit" businesses needing more funds than the 7a program allows for. Use the proceeds for acquisition or improvement of commercial real estate (not investment properties).
- $250,000 to $5,000,000
- Interest rates are pegged to an increment above the current market rate for five year and ten year U.S. Treasury issues
- Ten or 20 year maturities
- Fees total approximately 3% of the debenture and may be financed
- The fixed rate loan portion is 40% of total amount
- 50% of total loan amount rate is tied to Prime, plus a spread of .5% to 4%
- 10% equity required
Interest rates on variable rate business loans are tied to the Prime rate and are adjusted quarterly (SBA Loans adjusted monthly).
All loans are subject to approval. Maximum financing and rates may vary as determined by your credit profile. All rates and policies are subject to change without notice.
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