SBA Financing Programs
As a result of Congress’ approval 9-28-2010 of HR Bill 5297, the opportunity for financing and growing a small business has never been better during these economically challenging times. Below is a snap shot of key points to consider.
ELIGIBILITY
Based on the changes in the government size standards in order to be classified as a small business, now approximately 95% of all companies (32,000,000) in the United States qualify. The new standards are:
- tangible net worth of the company is less than $15,000,000
- net profit is less than $5,000,000 for the past two years
KEY FINANCING FEATURES
- PROGRAM SBA 7-a- Financing up to $5,000,000
- operating capital, inventory, accounts receivable financing – up to 10 years
- furniture, fixtures, equipment – up to 15 years
- owner occupied real estate – up to 25 years
- interest rate negotiable
- government loan fees temporarily waived
- personal guarantee
- PROGRAM SBA 504- Financing up to $11,000,000
- real estate – up to 25 years, acquisition, expansion, refinancing; in special cases the real estate does not be owner occupied- example mini warehouse storage units
- equipment – up to 15 years, new
- two notes- a government CDC note and a Bank note
- interest rate: government CDC portion has currently a 6% fixed for the term of the loan; subject to change; Bank portion’s rate is negotiable
- government fees are included in the government loan interest rate
- personal guarantee
- please visit The Financial Services Alliance website for more information
If your company needs SBA financing, our advisors are standing by to meet with you to assist you with the process. You may contact us at 800-381-7498 (office) or by e-mail.
