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SBA Loan Program Overview

Many business acquisations are financed by SBA loans. We work with some of the best preferred SBA lenders in the industry. There are two types of SBA loans available: 7A and the 504. Below are descriptions of both.

SBA 7(a) Program

SBA 7(a) loans can be used by small businesses for an array of opportunities. Terms range from 7 to 25 years, depending on the type of project. However, these loans cannot be used for investment purposes.

Loan Size

$50,000 to $2 Million

Advance Rates

Real Estate - up to 90% (less for special-use properties)
Business Acquisition - up to 85%
Equipment Acquisition - up to 100%
Debt Refinance - up to 100%
Business Start-up - up to 75%

Maximum Term (Fully Amortized)

Real estate purchase and refinance - 25 years
Business or equipment acquisition - 10 years
Working capital and inventory - 7 years

Collateral

Business assets, business or personal real estate

Loan Costs

SBA Guarantee fee - approximately 1.7 to 2.6% of loan amount
Bank processing fee - $900
Appraisal, environmental, title/escrow, etc.

SBA 504 Program

SBA 504 loan program provides second mortgage financing to small businesses who are the primary users of their buildings. Rates are fixed over the 20-year, assumable life of the loan. These loans cannot be used for refinancing.

Loan Size