7(a) Loans
$5 million
85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)
Term Loan. Expansion/ renovation; new con- struction, purchase land or buildings; purchase equipment, fixtures, lease-hold improve- ments; working capital; refinance debt for corn- pelling reasons; season- al line of credit, inventory or starting a business
Depends on ability to repay. Generally, working capital & machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Loans less than 7 years: $0 - $25,000 Prime + 4.25% $25,001 - $50,000 P + 3.25% Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75% $25,001 - $50,000 P + 3.75% Over $50,000 Prime + 2.75% Rate Parameters: Click here.
Fees charged on guarantied portion of loan only. Multiple loans within 90 days may trigger additional fees, Maturity 1 year or less: 0.25% guaranty fee Maturity more than 1 year: $150,000 or less = 2.0% (Lender retains 25% of fee) $150,001 - $700,000 = 3.0% $700,001-$1 Milloni= 3.5% Guarantied portion over $1 million = 3.75% Annual servicing fee = 0.55% Loans to small businesses in SBA-defined Rural or HUBZone Maturity more than 1 year: $150,000 or less = .6667% (Lender retains 25% of fee) Annual servicing fee = 0%
Must be a for profit business & meet SBA size stand- ards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty for loans with maturities of 15 years or more if prepaid during first 3 years. (5% year 1, 3% year 2, and 1% year 3) 7(a) Small Loans $350,000 and less - all loan applications will be credit scored by SBA prior to loan approval or loan number. If score below 140 the loan can be submit-ted via SBAExpress
Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years)
SBAExpress
$350,000
50%
May be used for revolving lines of credit, must have term out period not less than draw; or for a term loan [same as 7(a)].
Revolving plus term out can only have a maturity of 10 years. Otherwise, same as 7(a).
Loans $50,000 or less; prime+ 6.5% Loans over $50,000; prime + 4.5%
Same as 7(a) Loans
Fast turnaround; Streamlined process; Easy-to-use line of credit
SBA Veterans Advantage
Processed under SBAExpress $350,000
Same as SBAExpress
No guaranty fee. Annual servicing fee of 0.55%
Same as 7(a) plus business must be 51% owned and controlled by individual(s) in following groups: Veterans or Service-Disabled Veterans; Active Duty Military participating in TAP; Reservist and National Guard Members; Current spouse; Widowed spouse of service member who died during service or of a service-connected disability
Same as SBAExpress No guaranty fee
CAPLines:
Finance seasonal and/or short-term working capital needs; cost to perform; construction costs; advances against exist- ing inventory and receiv- ables; consolidation of short-term debts. May be revolving.
Up to 10 years, except Builder's CAPLine, which is 5 years
Same as 7(a) Loans Plus, all lenders must execute Form 750 & 750B (short-term loans)
Community Advantage
$250,000
Prime plus 6%
Same as 7(a) Loans Expires 03/31/2020
Same as 7(a) Loans Small Loans
Same as 7(a) Plus lenders must be CDFIs, CDCs, micro-lender or SBA Intermediary Lenders targeting underserved market.
International Trade
90% guaranty (up to $4.5 million maximum guaranty) (Up to $4 million maxi- mum guaranty for work- ing capital )
Term loan for permanent working capital, equip- ment, facilities, land and buildings and debt refinance related to international trade
Up to 25 years.
Same as 7(a) Loans Plus, engaged or preparing to engage in international trade or adversely affected by competi- tion from imports.
Long term financing to allow small business to compete more effectively in the inter-national marketplace
Export Working Capital Program
90% guaranty (up to $4.5 million maximum guaranty)
Short-term, working- capital loans for export- ers. May be transaction based or asset-based. Can also support standby letters of credit
Generally one year or less, may go up to 3 years
No SBA maximum interest rate cap, but SBA monitors for reasonableness
Same as 7(a) Loans Plus, need short-term working capital for direct or indirect exporting.
Additional working capital to increase export sales without disrupting domestic financing and business plan
Export Express
$500,000
90% guaranty for loans of $350,000 or less; 75% guaranty for loans greater than $350,000
Same as SBAExpress plus standby letters of credit
Same as SBAExpress, Except LOC:Revolving plus term out can only have a maturity up to 7 years.
Applicant must demonstrate that loan will enable them to enter a new, or expand in an existing export market. Business must have been in operation for at least 12 months (though not necessarily in exporting).
Fast turnaround; Streamlined process; Easy-to-use line of credit Loan can be for direct or indirect exporting.
504 Loans
504 CDC maximum amount ranges from $5 million to $5.5 million, depending on type of business or project.
Project costs financed as follows: CDC: up to 40% Lender: 50% (Non- guaranteed) Equity: 10% plus addi- tional 5% if new busi- ness and/or 5% if special use property.
Long-term, fixed-asset loans; Lender (non- guaranteed) financing secured by first lien on project assets. CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien.
CDC Loan: 10-, 20- or 25-year term fixed interest rate. Lender Loan: Unguaranteed financing may have a shorter term. May be fixed or adjustable interest rate
Fixed rate on SBA 504 Loan estab- lished when the debenture backing loan is sold. Declining prepay- ment penalty for 1/2 of term.
A participation fee of 0.5% is on lender share, plus CDC may charge up to 1.5% on their share. CDC charges a monthly servicing fee of 0.625%-2.0% on unpaid balance. Ongoing guaranty fee is 0.368% of principal outstanding. Ongoing fee % doesn't change during term.
Altemative 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 con- struction.
Low down payment - equity (10,15 or 20 percent) (The equity contribution may be borrowed as long as it is not from an SBA loan) Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons
504 Loan Refinancing Program
Same as 504
Loan to Value (LTV) Qualified and Secured Debt 90%. For projects that include "Business Operating Expenses (BOE)" the LTV is 85%. BOE may not exceed 15% of the fixed asset.
At least 85% of the pro- ceeds of the loan(s) to be refinanced had to be originally used for eligible fixed assets. May include the financing of eligible business ex- penses as part of the refinancing.
Same as 504 except, ongoing guaranty fee is 0.395% of principal out- standing.
Loan(s) to be refinanced can't be subject to a guaranty by a Federal agency, can't be a Third Party Loan which is part of an existing SBA 504 project and must have been current on all payments for the past 12 months. Both the business and loan(s) to be refinanced must be at least 2 years old.
Business can access equity in its commercial real estate for business operating ex-penses or refinance property on reasonable terms. Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons
Microloans
$50,000
Not applicable
Working capital, supplies, machinery & equipment, fixtures; etc. Intermediary may chose to refinance debt. Cannot be used for real estate.
Shortest term possible, not to exceed 6 years
Negotiable with intermediary. Subject to either 7.75 or 8.5% above inter- mediary cost of funds.
No guaranty fee
Same as 7(a)
Direct loans from nonprofit intermediary lenders; Fixed-rate financing; Very small loan amounts; Technical assistance available
Information effective as of October 2018 (Fiscal Year 2019)
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