SBA LOANS
SBA 504 Loans
Loan Limit: $5.5 million
Purpose:
Purchase, construction or improvement of:
Existing building or land
New facilities
Long-term machinery and equipment
Lands, streets, utilities, parking lots and landscaping
Existing facilities
CANNOT be used for:
Working capital
Inventory
Consolidating, repaying or refinancing debt
Speculation or investment in rental real estate
Eligibility:
Operate for profit in the United States or it's possessions
Have a tangible net worth of less than $15 million
Average net income of less than $5 million after federal income taxes for the 2 years preceding application
Repayment terms:
10, 20, 25-year maturity terms available
Interest Rates:
Highly competitive with 10-year treasury bonds offering very reasonable interest rates
SBA Microloans
Loan Limit: $50,000
Purpose:
Rebuild, re-open, repair, enhance, improve small business
Working Capital
Inventory
Supplies
Furniture
Fixtures
Machinery
Equipment
CANNOT be used for:
Pay existing debt
Purchase real estate
Eligibility:
Each intermediary lender has its own lending and credit requirements
Usually require some type of collateral and personal guarantee
Repayment terms:
Maximum repayment term 6 years
Interest Rates:
Generally between 8%-13%
SBA 7(A) Loans
Loan Limit: $5 million
Purpose:
Acquiring, refinancing, or improving real estate buildings
Short and long-term working capital
Refinancing current business debt
Purchasing and installation of machinery and equipment
Purchasing furniture, fixtures and supplies
Changes of ownership (complete or partial)
Multiple purpose loans
Eligibility:
Be an operating business
Operate for profit
Be located in the U.S.
Be small under SBA size requirements
Not be a type of ineligible business
Not be able to obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources
Be creditworthy and demonstrate a reasonable ability to repay the loan
Repayment terms:
10, 20, 25-year maturity terms available
Interest Rates:
Highly competitive with 10-year treasury bonds offering very reasonable interest rates
