7(a) Loan Programs.
The 7(a) loan program is made through the Small Business Administration (SBA) guaranteed loan program. For loan amounts of $100,000 to $5,000,000.
ELIGIBLE BUSINESSES AND PROPERTY TYPES
Almost any type of for-profit business is eligible. Commercial real-estate must be partially occupied by borrower and includes, but is not limited to, the following types of properties:
Hotels and Motels
Child Care Facilities
Car Wash Facilities
Bed and Breakfasts
USE OF PROCEEDS
Real-estate acquisition, construction, or refinance - up to 90% financing available
Business Acquisition - up to 80% financing available
Equipment Acquisition - up to 100% financing available
Debt Refinance -up to 100% financing available
Up to 25 years for real-estate financing
Up to 10 years for equipment or business acquisition financing
All loans are fully amortized.
INTEREST RATES AND FEES
Interest rates are always market competitive. Fees are generally limited to the SBA guaranty fee and customary closing costs.
504 Loan Programs.
Also made through the SBA loan program, these loans are for amounts of up to $10,000,000.
Low down payment of only 10%
Long repayment terms – reducing monthly payments
Frees up cash flow to expand your business
Many rate options including long term fixed rates
Associated fees and soft costs may be financed in the loan.
USE OF PROCEEDS
Purchase, refinance, construction, or renovation of owner-occupied commercial real estate
Purchase and installation of long-life machinery and equipment.
Standard Loan Structure
50% financing First mortgage from Conventional Lender
40% financing SBA 504 second mortgage (provided through a local Certified Development Corporation)
10% minimum down payment by the borrower (15% in the case of special use properties)
Up to 30 years, fully amortized
Competitive rates available
Prepayment penalty applies & is set based on various factors
20 years, fully amortized
Fixed rate is determined at SBA-guaranteed 504 debenture sale
Fees set by CDC
Prepayment penalty for initial 10 years, none after the end of year 10
Pre-screen service available within 24 hours with no charge or obligation by providing limited information.