Howard Francis (650) 449-6888 Howard@CPAddc.com
4 SBA Loans: % Financed & Max Loan
- Business acquisitions: $1 million up to $10 million ... 90% financing
- Real estate purchases up to $20 million
- Partner Buyouts up to $7 million ... 100% financing
- Debt Refinance up to $5 million ….100% financing
Below is both the text and a 1 page PDF for the 2 most popular SBA loans.
The 2 most popular SBA loans are SBA 504 and SBA 7(A)
SBA's most Popular Loan 7(A)
SBA 7(A) Loan
The SBA 7(a) loan is the most common SBA loan product, offering flexibility on terms and business uses- SBA loans allow businesses to obtain capital with less equity than a conventional loan
- Our SBA lenders have Preferred Lender Status (PLP) with the SBA which gives them authority to make final credit decisions without having to get SBA approval.
- With our dedication to efficiency, collaboration and deep knowledge of small business lending. we'll take you where you need to go. Our experienced team will create a unique financing plan to help you and your business thrive.
Advantages
- Up to 90% bank financing
- Minimal collateral requirements
- Fully amortized/no balloons
- No pre-payment penalties for loan terms under 15 years
- Three year pre•payment penalty for loans with a term greater than 15 years
Loan Purpose
- Business/practice purchase
- Partner/manager buyout Expansion through acquisition
- Real estate purchase including ground-up construction and tenant improvements
- Refinance existing business debt
- Purchase equipment
How it Works
- Maximum loan amount: $5 million
- If your needs exceed the $5 million lending limit of the SBA, we have creative combination debt solutions allowing us to combine an SBA loan with a commercial loan
- Interest rate: Varies based on dairy prime rate plus lender spread
Down payment:
- Typically 10% of project amount
- Collateral: Personal guarantees required from all owners of 20% or more of the business; Personal assets may be required to meet SBA collateral guidelines
The common loan terms for SBA7(a) loans are the following:
- Business acquisition (no real estate)
- -10-year maximum Machinery and equipment
- • 15-year maximum
- • Real estate (51% or more allocated to real estate) • 25-year maximum
Who's a Good Fit
- Profitable existing business
- Acceptable debt service coverage
- Good personal credit score (650 minimum)
- Two-year average net profit after taxes up to S5 million
- Located in the United States
- For-profit business
What We Need to Get Started
- Purpose of the loan
- Business background and plan
- Business debt schedule
- Personal tax returns (three years)
- YTD financials
- Personal financial statement
- Other eligibility information (personal background, character, credit)
- Resume
- Business tax returns and financials (three years from existing business and/or selling business)
- Projections
The data supplied by the SBA reflects 7(a) highest dollar volume during FY 2021 | 2. If your needs exceed the $5 million lending limit of the SBA, we have creative combination debt solutions allowing us to combine an SBA loan with a commercial loan.
7(A) At-A-Glance
Maximum Loan Size : $5 million Repayment Terms : Up to 25 years
Pricing
- Variable
- multi-year adjustable
Prepayment
- 5-3-1 for loan terms greater than 15 years
Borrower Type For-profit business
SBA 2nd most Popular Loan
SBA 504 Loan
SBA 504 Loan may be a viable option if you're looking to expand, purchase commercial real estate or heavy machinery and equipment.
- Unlike other SBA loans, three parties are involved with financing each SBA 504 loan—the borrower, the bank, and the SBA-approved certified development company (CDC).
- A portion of these loans is guaranteed by the government allowing small business owners to obtain capital with less equity than conventional loan requirements.
- With our SBA provider's dedication to efficiency. collaboration and deep knowledge of small business lending, we'll take you where you need to go.
Advantages
- A low down payment (typically 10 percent) conserves your cash
- Fixed or multi-year fixed available
Loan Purpose
- Purchase existing building
- Land acquisition and ground-up construction (includes soft cost development fees)
- Expansion of existing building
- Finance building improvements
- Purchase equipment
- Refinance in conjunction with expansion
How it Works
- 50% bank loan, SBA (CDC) loan (20-25 year fixed rate), borrower down payment
- Minimum equity requirements 10% to 20% (subject to CDC and SBA approval and based on property use and length of time in business)
- 51% owner occupancy required for existing building,
- 60% owner occupancy required for new construction
- Equipment with a minimum 10-year economic life
- Generally, the project assets being financed are used as collateral
- Personal guarantees of the principal owners of 20% or more ownership are required
Who's a Good Fit
- For-profit businesses operating in US
- Strong personal credit
- Project must create or retain jobs or promote other public policy goals
What We Need to Get Started
- Purpose of the loan
- Business background and plan
- Projections
- Business tax returns and financials (from existing business and/or selling business)
- Personal tax returns
- Personal financial statement
- Resume
- Other eligibility information (personal background, character, credit)
- Business debt schedule
504 At-A-Glance
Maximum Loan Size : $15 million Repayment Terms : Up to 25 years
Pricing :
- Floating or multi-year fixed available
Prepayment:
- Bank Loan:
- 3-5 years declining
SBA Bank Loam: 10 years declining Borrower Type: For-profit business
Hedge Fund ERTC Advance gets You a 75% US Govt Backed Loan
With Interest Rates Skyrocketing it is Time to Diversify Lending Sources
SBA loans with our SBA Banks close 30 days Faster
- Loan Amount Varies by product, SBA 7(a) up to $5 million and SBA 504 up to $15 million
- Loan Term Up to 25 years
- Equity Requirements Minimal equity injection required
- Interest Rate Varies by loan type
- Feb 28, 2022 SBA 504 loan was Prime + 2.75%
- No origination fee, no prepayment penalty.
We promote to small business owners SBA-backed funding through US Banks with a preferred status within the SBA loan program.
- The US banks we recommend have the authority to make final credit decisions without going through the SBA first.
- This typically saves you 3 to 4 weeks in getting you an answer compared to the Bank you probably use.
Usually, our SBA lenders also offer you
- longer repayment terms,
- lower payments, and
- no prepayment penalties (except on commercial real estate).
The most common SBA loan is SBA 7(a) since it it offers flexibility on terms and business uses.
An SBA 7(a) loan is a good option for :
1. acquisitions,
2. partner buyouts,
3. real estate purchases,
4. refinance and more.
Advantages: Up to 90% bank financing Fully amortized/no balloons No pre-payment penalties for loan terms under 15 years
SBA 504 loan (see 1 page PDF below)
While the eligibility requirements for a 504 loan are nearly the same as for the 7(a) loan program, the approved uses of the loan are different. They fall into three main categories:
1. buying commercial real estate,
2. financing improvements within that real estate and
3. purchasing large equipment.
Advantages: Low down payment (typically 10%) conserves your cash, fixed or floating interest rates available Loan amounts up to $15,000,000.
400% to 600% FEDERAL RESERVE Interest Rate Increase to Banks
Top 12 US Banks predict the Federal Reserve will increase the current 0.25% rate by 1.75%.
Howard Francis, CEO (650) 449-6888 Howard@CPAddc.com
Victor Mojica, President (408) 314-3017 Victor@CPAddc.com
Our 4 free eBooks total over 800 pages: ProfitsUSA.com GeniusPaymentSystem.com How to Get 20% More ERC Refund in 1 Month
For over 10 years, our elite community of Attorneys & CPAs has done Due Diligence on many cost and risk saving solutions and also wealth creation solutions. Most of our vetted solutions have NO NET COST and have many client references.
Copyright © 2023 Santa Cruz Ventures Inc. - All Rights Reserved. This reading material is presented with the understanding and agreement that SCV Inc. is not engaged in rendering legal or other professional services by posting said material. US Treasury regulations require us to inform you that any US federal tax advice contained herein is not intended or written to be used and cannot be used by any person or entity to avoid penalties that may be imposed under the Internal Revenue Code. The services of a competent professional should be sought if legal, accounting, tax, or expert assistance is required.
This website uses cookies.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.