Skip to main content

INVESTING IN YOUR BUSINESS

Small Business Lending Solutions

PROGRAM MAXIMUM LOAN AMOUNT PERCENTAGE OF GUARANTY USE OF PROCEEDS MATURITY MAXIMUM INTEREST RATES GUARANTY FEES WHO QUALIFIES BENEFITS TO BORROWERS
7(a) $5 million (up to $3.75 million maximum guaranty) 85% Guaranty for loans of $150,000 or less. 75% Guaranty for loans greater than $150,000 Term loan; Start-up operations; Working capital; Furniture & fixtures; Machinery & equipment; Real estate including purchase, construction & renovation; Refinance of business debt Working capital and machinery and equipment (not to exceed life of equipment) is 7-10 years; real estate is 25 years Maturity 7 years or more: prime+2.75%; Prepayment penalty for loans of 15 years or more if prepaid during first 3 years. (5% year 1, 3% year 2, 1% year 3) Fee charged on guaranteed portion of the loan only; Maturity: over 1 year, $125,000 or less=no fee; $125,000-$150,000=2%; $150,001-$700,000=3%; over $700,000=3.5%; 3.75% on guaranteed portion over $1 million Must be a for-profit business and meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Long-term financing; improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years)
SBA Express $350,000 (up to $3.75 million maximum guaranty) 50% May be used for revolving lines of credit (up to 10 year maturity) or for a term loan (same as 7(a)) Up to 10 years for revolving lines of credit including term out period. Otherwise, same as 7(a). Loans $50,000 or less; prime+6.5%; Loans over $50,000: prime+4.5% Same as 7(a) loan program Same as 7(a) loan program Fast turnaround; Streamlined process; Easy-to-use line of credit
International Trade $5 million (up to $4.5 million maximum guaranty) 90% guaranty Term loan for permanent working capital, equipment, facilities, land and buildings and debt refinance related to international trade Same as 7(a) loan program Same as 7(a) loan program Same as 7(a) loan program Same as 7(a), plus engaged/preparing to engage in international trade/adversely affected by competition from imports Long-term financing to allow small business to compete more effectively in the international marketplace
Working CAPLine Same as 7(a) loan program Same as 7(a) loan program Revolving line of credit Up to 10 years including an exit strategy Same as 7(a) loan program Same as 7(a) loan program Same as 7(a) loan program Provides financing for cyclical growth and recurring short term needs
Contract CAPLine Same as 7(a) loan program Same as 7(a) loan program To finance specific contracts Up to 10 years including an exit strategy Same as 7(a) loan program Same as 7(a) loan program Same as 7(a) loan program Fulfill short or long term needs for specific contract(s)
504 Loans

Provided through bank and Certified Development Companies (CDC's), which are licensed by SBA
504 SBA maximum amount ranges from $5 million to $5.5 million, depending on type of business. Total project can exceed $20 million. Project costs financed as follows: Bank 50%+; SBA 30%-40%; Borrower 10%-20% Long-term, fixed asset loans; Lender (non-guaranteed) financing secured by first lien on project assets. CDC loans provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by second lien 504 Loan: 10 or 20 year term fixed interest rate. Lender loan negotiable. Fixed rate on 504 Loan established when debenture backing loan is sold. Declining prepayment penalty for half of term Minimum 1% loan fee based on first mortgage Same as 7(a) loan program and job creating or rural market or minority owned Low down payment equity of 10%-20% (the equity contribution may be borrowed); Fees can be financed; SBA portion; Long term fixed rate; Full amortization; No balloons
USDA B and I $25 million Up to 80% Term Loan. Expansion/renovation; new construction; purchase land or buildings; purchase equipment, fixtures, leasehold improvements; working capital, refinance debt, inventory, business acquisition Working capital - 7 years; Equipment - Useful life; Real Estate - 30 years WSJP + 2.75% 3% of the guaranteed portion of the loan Must be a rural area with a population less than 50,000. Tangible net worth of 10% must be demonstrated on an existing business or 20% for a start-up Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years)