Small Business Administration (SBA) guaranteed loans are designed to help small business owners with their
SBA 7a (Commercial Real Estate & Equipment)
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Up to 90% LTV
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25-year terms fully amortized on CRE
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Up to 10-year terms on Equipment & Leaseholds, can go to 25 years if RE> 50% on blended use.
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Working Capital 7-10 year terms
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Competitive variable and fixed rates
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SBA guarantee fee (on guaranteed portion)
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No loan origination fees are charged on SBA 7a
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Borrower Equity: as little as 10%
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Purchase or Refinance
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Loan size $250M to $5MM
SBA 7a (Eligible use of proceeds)
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CRE purchase/Refinance
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Equipment Purchase/Refinance
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Business start-up/acquisition
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Franchise Financing
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Real Estate Construction
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Leasehold improvements
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Back property tax
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Debt consolidation
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Working Capital
SBA 504 (CRE and Equipment)
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Up to 90% LTV
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Terms amortized over 10, 20 and 25 years
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Rates are variable or fixed, indexed to Prime or Libor Swaps.
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Bank finances 50% of the loan with a first lien position and SBA finances up to 40% in a second lien position
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Property must be 51% owner occupied
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Bridge loans available on CDC portion
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Purchase or Refinance
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SBA Loan Fees can be financed within the loan
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Bank fees vary depending on deal
SBA Loan Property Types
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Retail
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Office
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Industrial / Warehouse
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Self-Storage
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ALF (Assisted Living Facilities)
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Medical
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Fitness
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Gas Stations
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Restaurants
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Hotels
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Day Care Facilities
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Specialty property