SBA Loans

The 7a loan program has flexible parameters to accommodate most requests. A 7a loan can not have a revolving provision, and the maximum loan size is $2,000,000. Term of the loan is dependent on the purpose of the request; typically, working capital loans range from 7-10 years, while real estate can be as much as 25 years. The SBA provides the lender with a 75-90% guaranty, depending on the request.

With an SBA Express loan program, the loan amount cannot exceed $350,000, and carries a maximum term of 7 years. The loan can be a term loan or a revolving line of credit. The SBA provides the lender with a 50% guaranty.

The Patriot Express program is a great option for businesses owned at least 51% by veterans, a spouse of a veteran, or those in the military. The Patriot Express loan can not exceed $500,000 and carries a maximum term of 7 years. The loan can be a term loan or a revolving line of credit. The SBA provides the lender with a 75-90% guaranty, depending on the loan size.

The 504 program is intended for real estate purchases, construction, and machinery and equipment purchases. This program enables the borrower to provide as little as a 10% equity injection. The financing package is structured with 2 loans - one loan is typically obtained through First Bank Financial Centre for 50% of the financing needs, secured by a 1st lien on the asset; a second loan is obtained through a certified development company for approximately 40% of the financing need, depending on the amount of borrower contribution required. The loan is a fixed rate loan up to a 20 year term and is secured by a 2nd lien on the asset.

The American Recovery Capital Program is designed to assist small businesses that are suffering an immediate financial hardship. Hardships can include, but are not limited to, a 20% decrease in revenues, 20% increase in expenses, loss of employees, and recently imposed credit restrictions. An ARC loan cannot exceed $35,000, and funds may be used to make payments on only qualifying business debt. Disbursement of loan proceeds ranges from 1-6 months, depending on the needs of the business. Repayment begins 12 months after disbursement is complete at a 0% interest rate; payments are amortized over 60 months. There are no fees associated with this program and the SBA provides a 100% guaranty to the lender.