Commercial Loans

• Designed for businesses looking to finance working capital needs, business acquisition, expand to another location, buy equipment, acquire land or a building, or a combination.
• Ideal for longer term financing for businesses with net worth below $15 million and an average net income below $5 million.
• Loan amounts from $351,000 to $5,000,000.
• Terms are up to seven years for working capital, 10 years for equipment, 10 years for business acquisition, and 25 years for real estate. Weighted average for a mixed-use request.
• Rates can be fixed or variable.
• Prepayment Penalties: Over 15 year term: 5% in year one, 3% in year two and 1% in year three. If the loan term is under 15 years there are no prepayment penalties.
• Who Qualifies: Must be a for profit business and meet SBA size standards, show good character, credit, management, and ability to repay. Must be an eligible type of business.
• Benefits: Long-term financing, improved cash flow, fixed maturity, no balloon payment, no pre-payment penalty (under 15 year loan term), fees can be financed.

SBA 7(a) loans are available to both startups and more established small businesses, and have a variety of eligibility requirements. These SBA loan eligibility requirements include being a small business located in the United States, able to demonstrate the need for the loan proceeds, your industry, and the citizenship status of your owners.

To qualify for an SBA 7(a) loan, you will generally need to meet these minimum requirements:

• Credit score: At least 680
• Other SBA loan requirements: No recent bankruptcies, foreclosures, or tax liens
• Down payment: At least 10% down payment if you are using the loan to purchase a business, commercial real estate, or equipment

Startups seeking an SBA loan will need to meet the above requirements, plus they should have:

• Demonstrated experience: Startups need to show the lender they have sufficient industry or business management experience and provide a strong business plan. Your business plan will need to have a detailed written analysis, and you’ll also need to provide financial projections for your business’ performance over the next three to five years.
• Larger down payment: Perhaps the largest hurdle for startups is that most SBA lenders will require an equity injection or down payment of at least a 20% to 30% of your total project costs, or $20 to $30 for every $100 you want to borrow.
• Excellent credit: In our experience, it is very difficult for anyone other than the best borrowers—credit score of at least 700, high net worth, and real estate with significant equity—to get approved for SBA financing as a startup.

• Designed for businesses looking to to expand through land or building acquisition, construction, or equipment purchase.
  Ideal for longer term financing for businesses with net worth below $15 million and an average net income below $5 million.
• Terms are up to 20 years on Real Estate and up to 10 years on machinery or equipment.
• Rates can be fixed or variable.
• Prepayment Penalties: Yes. Declining prepayment for the first half of the loan.
• Who Qualifies: Alternative size standard: For profit businesses that do not exceed $15 million in tangible net worth, and do not have an average two full fiscal year net income over $5 million. Owner occupied 51% for existing or 60% for new construction.
• Benefits: Low down payment—equity contribution of 10, 15 or 20% depending on loan type, longer term fixed rate, full amortization and no balloon payment.

To qualify for a CDC/SBA 504 loan, your business must meet these minimum requirements:

• Credit score: At least 680
• Down payment: At least 10% of the project cost

Additionally, you’ll be required to not have the needed funds available from other sources, not be engaged in the investment of rental real estate, and you’ll need to meet these other requirements:

• Business net worth: Have a tangible net worth less than $15 million
• Repayment ability: Be able to repay the loan on time from the projected operating cash flow of the business
• Business: Have been in business three or more years and are profitable
• Building occupation: Building must be at least 51% owner-occupied