SBA 7a loans are
the most basic and most used type loan of SBA's business loan
programs. Its name comes from section 7(a) of the Small Business
Act, which authorizes the Agency to provide business loans
to American small businesses through private lenders.
Borrower Benefits
•
Long repayment terms,
reducing monthly payments.
•
Frees up cash flow to
expand your business.
•
Low down payment of as
little as 10% on multi-purpose real estate acquisitions
and as little as 15% on single-purpose real estate acquisitions.
•
Financing available for
most industry types including: hotel/motel, gas station/convenience
stores, restaurants and day care.
Loan Amounts
•
$100,000 to $2 million
Use of Proceeds
•
Real estate — purchase,
construction, renovation or refinance of commercial real
estate. Majority of space must
be owner-occupied. Loans up to $2.0 million.
•
Business acquisition
— business, franchise or professional practice. Loans
up to $2.0 million.
•
Machinery & equipment
— purchase or refinance. Loans up to $1.5 million.
•
Start-up — franchised
businesses such as restaurants and hotel/motel. Loans
up to $2.0 million.
Terms
•
Real estate — up
to 90% financing, up to 25 years, Prepayment penalty for
initial 3 years, none after the end of year 3.
•
Business acquisitIon
— up to 75% financing (or 80% with seller financing
component), up to 10 years, No prepayment penalty.
•
Refinance — up to
100% financing, up to 25 years, Prepayment applicable
for initial 3 years on terms greater than 15 years.
•
Rates are based on a
spread over the Prime Lending Rate. Rates vary depending
on the specific strengths of the transaction.
•
SBA Guarantee Fee is
paid directly to U.S. Small Business Administration. Amount
varies based on loan/guarantee amount. Other customary
fees also apply.
•
All 7a loans are fully
amortized and are assumable.
Pre-Screen
•
Pre-screen service available
within 24 hours with no charge or obligation by providing
limited information. Contact me for more information.
