SBA Loans

SBA Loans

The SBA offers numerous loan programs to assist small business owners to start, manage, and grow their businesses. Here are some of the most popular SBA loan programs:

SBA Express Program

The SBA Express Program is designed to provide small business owners with a streamlined and expedited loan process, offering lower interest rates, flexible repayment options, and quicker turnaround times compared to traditional loans. Here are some of the key features:

• Lower Interest Rates - Rates can be fixed or variable and are tied to the prime rate (as published in The Wall Street Journal), LIBOR, or the optional peg rate (published quarterly in the Federal Register), but they may not exceed SBA maximums.
• Flexible repayment options and longer terms than traditional loans, making it easier for small businesses to manage their finances and repay their loans over time.
• Borrow up to $350,000, providing substantial funding to support various business needs.
• Maximum SBA Guaranty is 50%, ensuring that lenders are more willing to approve loans even for businesses with limited collateral.
• Quick Turnaround - May receive a response to your application in less than 2 days, allowing businesses to access funds quickly and address immediate financial needs.
• Use the funds for working capital, equipment, inventory, or real estate purchases, or to expand facilities, providing flexibility in how the loan can be utilized.

SBA Patriot Express Pilot Loan

The SBA Patriot Express Pilot Loan is specifically designed for veterans and members of the military community who want to establish or expand small businesses. This program offers a variety of benefits and flexible terms:

• Loans for veterans and members of the military community wanting to establish or expand small businesses, helping those who have served our country to succeed in their entrepreneurial endeavors.
• Can be used for a variety of purposes including startup costs, equipment purchases, business-occupied real-estate purchases, inventory, and managing your existing business.
• Smaller credit requests, allowing for an expedited and streamlined application process that simplifies obtaining the necessary funding.
• Line of credit or term loan up to $500,000, providing significant financial support for various business activities.

7(a) General Small Business Loans

The 7(a) General Small Business Loan program is ideal for businesses that may not meet the conventional lending collateral or cash flow requirements. This program offers several advantages:

• Ideal for businesses that may not meet the conventional lending collateral or cash flow requirements, making it accessible to a wider range of small business owners.
• Often provide longer terms than conventional lending, offering more manageable repayment schedules and lower monthly payments.
• Proceeds can be used to provide long-term working capital to pay operational expenses, accounts payable, and/or to purchase inventory or equipment, machinery, furniture, fixtures, supplies, or materials, or to construct a new building or refinance existing business debt, or even to establish a new business.
• SBA guarantee limited to $1.5 million, with a $5 million maximum on the loan amount, providing substantial funding to support significant business growth and expansion.

Real Estate & Equipment Loans: CDC/504

The CDC/504 Loan program is designed to provide financing for the purchase of fixed assets, such as real estate, buildings, and machinery, at below-market rates. This program is ideal for growing businesses looking to make significant investments in their infrastructure:

• This program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings, and machinery, at below-market rates, making it more affordable for businesses to invest in their growth.
• Applicant has a tangible net worth less than $15 million and an average net income less than $5.0 million after taxes for the preceding two years, ensuring that the program is targeted at genuinely small businesses.
• Provides growing businesses with long-term financing for purchasing land, constructing new buildings, expanding facilities, or purchasing long-term machinery and equipment, supporting significant business growth and expansion projects.
• No working capital permitted, ensuring that the funds are used specifically for substantial, long-term investments.
• Maximum 504 debentures sizes: $5 million for regular loans, $5 million for public policy loans, and $5.5 million for small manufacturer loans, offering significant funding for large-scale projects.