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Business: Loan Products: SBA Loans
This loan program, guaranteed by U.S. Small Business Administration, is a very helpful tool for small business to obtain financing that otherwise might not be available. The following programs assist customers with different needs. Please call the Bank's experienced SBA lenders for details.
7(a) Loan Program This is the most commonly used SBA program. It provides term loans for the purchase of business real estate or business assets.
Purpose: Acquisition of fixed assets; working capital; start-up financing.
Government Guarantee: 75% to 85%
Loan Amount: Max. 2 million
Maturity: 5 - 7 years for working capital, up to 10 years for equipment, up to 25years for real estate.
Interest Rate: Variable and fixed rate available
Collateral: Real estate and personal assets
Eligibility: Certain size limitations are applied according to the industry that the borrower is in.
Benefits of this SBA Program: Longer terms available.
Lower down payment for the purchase of assets.
Credit enhancement.
504 Program This program is specially designed for the purchase of fixed assets at lower down payments and lower interest rates. Typically, the Bank makes a senior lien real estate loan for 50% of the purchase price, while CDC (backed by the SBA) covers up to 40% of the purchase price with a junior lien loan.
. Purpose: Fixed assets only - no working capital
Loan Amount: Usually $2,000,000
Maturity: 10 or 20 years
. Interest Rate: Lower than for conventional loans
Collateral: Real Estate
Benefits of this Program:
* Down payment as low as 10% of the cost
* Lower interest rates.
CAPLINE This revolving line program is designed to help small businesses meet their short-term and cyclical working capital needs.
Purpose: Short-term working capital
. Loan Amount: Max. $1,000,000
Maturity: Up to 5 years. 30 days clean-up during a 12 months period is required.
Interest Rate: Variable based on Prime Rate.
Collateral: Business Assets.
For more information, please contact Charles Elliott at (805) 525-5871.
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