A SBA 7(a) loan is great for business expansion, building renovation, leasehold improvements, new construction, purchase of a building, purchase of equipment, working capital, and debt consolidation. It offers a maximum loan amount of $5,000,000 and has a maximum term and amortization of 25 years for real estate secured loans and 10 years for loans that aren't real estate secured.
A SBA 504 loan offers interest rates that are set for the term of the loan and may require lower equity. This loan is ideal for acquisitions, expansions, and refinance.
A SBA Express loan offers a streamlined process and a maximum loan amount of $350,000. This loan is ideal for leasehold improvements, equipment purchases, or working capital.
Terms & Requirements
20 to 25 years for real estate loans; 10 years for furniture, fixtures, equipment, and working capital loans.
Must match the term offered, which will help with lower loan payments every month as there is no balloon payment.
Based on Wall Street Journal Prime rate, variable, adjusting every quarter
Between 10% to 20%
$2,500 flat packaging fee and an SBA guaranty fee based on the guaranteed portion of the loan amount.
In general, closing costs can be included in the loan.
- Operate for profit
- At least 51% owner-occupied
- Be small, as defined by SBA
- Be engaged in, or propose to do business in, the United States or its possessions
- Have reasonable invested equity
- Use alternative financial resources, including personal assets, before seeking financial assistance
- Be able to demonstrate a need for the loan proceeds
- Not be delinquent on any existing debt obligations to the U.S. government and have a satisfactory credit history
- Existing business needs 2 full years of business history
- Personal guarantees are required from all owners of 20 percent or more of the equity of the business.
- 3 most recent years of business and personal tax returns (Borrower and Guarantors)
- 3 most recent years of business financial statements & Interim business financial statements
- Current Personal Financial Statements. Download a personal financial statement template here.
- Current debt summary schedule for business and guarantor