Loan Options | Different Loan Programs

Program

Program	7(a) Loans
Minimum & Maximum Loan Amount	$125,000 – $5 million
Percent of Guaranty	85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)
Use of Proceeds	Term Loan; Expansion / renovation; new construction, purchase land or buildings; purchase equipment, fixtures, leasehold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit, inventory, starting a business or acquiring one.
Maturity	Generally, working capital, machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Maximum Interest Rates	Loans less than 7 years: $0 - $25,000 Prime + 4.25%; $25,001 - $50,000 Prime + 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 Ranges between Prime 2.00 % to 2.75%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001 - $700,000 = 3.0%; $700,001 - $1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%; Ongoing fee of 0.546%.
Who Qualifies	Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty on loans with maturities of 15 years or greater if prepaid during first 3 years only. (5% year 1, 3% year 2 and 1% year 3). May pay up to 25% in any year with 21 day advance lender notification.
Benefits to Borrowers	Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty on loans with a term of less than 15 years.

* Subject to Credit Approval

Program	7(a) Small Loans Is any 7(a) loan $350,000 and under, except the Community Advantage and Express loans.
Minimum & Maximum Loan Amount	$125,000 – $350,000
Percent of Guaranty	85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)
Use of Proceeds	Term Loan; Expansion / renovation; new construction, purchase land or buildings; purchase equipment, fixtures, lease-hold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit, inventory, starting a business or acquiring one.
Maturity	Generally, working capital, machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Maximum Interest Rates	Loans less than 7 years: $0 - $25,000 Prime + 4.25%; $25,001 - $50,000 Prime + 3.25%; Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75%; $25,001 - $50,000 Prime + 3.75%; Over $50,000 Prime + 2.75%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001 $700,000 = 3.0%; $700,000-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%; Ongoing fee of 0.546%.
Who Qualifies	Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Plus all loan applications will be credit scored by the SBA. If not an acceptable score, the loan can be submitted via full standard 7(a) or Express. 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)
Benefits to Borrowers	Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years).

* Subject to Credit Approval

Program	SBAExpress
Minimum & Maximum Loan Amount	$125,000 – $350,000
Percent of Guaranty	50%
Use of Proceeds	May be used for revolving lines of credit (up to 7 year maturity) or for a term loan; expansion / renovation; new construction, purchase land or buildings; purchase equipment, fixtures, leasehold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit, inventory, starting a business or acquiring one.
Maturity	Up to 7 years for Revolving Lines of Credit including term out period. Otherwise, generally, working capital, machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Maximum Interest Rates	Loans $50,000 or less - Prime+ 6.5% Loans over $50,000 - Prime +4.5%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001 $700,000 = 3.0%; $700,000-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%; Ongoing fee of 0.546%.
Who Qualifies	Must be a for-profit business & meet SBA size standards; 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)
Benefits to Borrowers	Fast turnaround; Streamlined process; Easy-to-use line of credit.

* Subject to Credit Approval

Program	SBA Veterans Advantage Processed under SBAExpress $350,000 Processed under 7(a) $5 million
Minimum & Maximum Loan Amount	50% guaranty on 7 (a) loans of $350,000 or less; 75% guaranty for loans greater than $350,000 (up to $3.75 million maximum guaranty)
Percent of Guaranty	50% as SBAExpress Loan
Use of Proceeds	SBAExpress - Maybe used for revolving lines of credit (up to 7 year maturity) or for a term loan; expansion / renovation; new construction, purchase land or buildings; purchase equipment, fixtures, leasehold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit, inventory, starting a business or acquiring one.
Maturity	SBA Express - Up to 7 years for Revolving Lines of Credit including term out period. Otherwise, generally, working capital, machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Maximum Interest Rates	Loans $50,000 or less; Prime + 6.5% Loans over $50,000: Prime + 4.50% Loans 7 years or longer: 0 - $25,000 Prime + 4.75%: $25,001 - $50,000 Prime + 3.75%: Over $50,000 Prime + 2.75%
No Guaranty Fees	(Same as 7a) Loans except guaranty fee for non SBA express loans up to $500,000 will be reduced by 50%. Ongoing fee of 0.546%.
Who Qualifies	Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Small business must be owned and controlled (51%+) by one or more of the following groups: veteran, active-duty military in TAP, reservist or national Guard member or a spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service, or a service connected disability. 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)
Benefits to Borrowers	Fast turnaround; Streamlined process; Easy-to-use line of credit. No guaranty fee. Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years); Reduced guaranty fee.

* Subject to Credit Approval

Program	504 Loans Provided through Certified Development Companies (CDCs) which are licensed by SBA.
Minimum & Maximum Loan Amount	504 (2nd mortgage) CDC maximum amount ranges from $5 million to $5.5 million, depending on type of business. Bank (1st mortgage loan) based on Legal Lending Limit.
Percent of Guaranty	Project costs financed as follows: CDC: up to 40% Lender: 50% (Non-guaranteed) Equity: 10% plus additional 5% if new business and/ or 5% if special use property.
Use of Proceeds	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.
Maturity	Bank Loan: 10 year balloon, based on a 20 or 25 year amortization. CDC Loan: 10- or 20-year term fixed interest rate.
Maximum Interest Rates	Fixed rate on 504 Loan established when the debenture backing loan is sold. Declining prepayment penalty for 1/2 of term.
Guaranty Fees	.5% fee on lender share, plus CDC may charge up to 1.5% on their share.
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 to Borrowers	Low down payment - equity (10,15 or 20 percent). Fees can be financed; SBA /CDC Portion: Long-term fixed rate; Full amortization and no balloons.

* Subject to Credit Approval

Program	CapLines: 1. Working Capital 2. Contract; 3. Seasonal; and 4. Builders
Minimum & Maximum Loan Amount	$125,000 – $5 million
Percent of Guaranty	85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)
Use of Proceeds	Finance seasonal and/or short term working capital needs; cost to perform; construction costs; advances against existing inventory and receivables; consolidation of short-term debts. May be revolving.
Maturity	Up to 10 years, except Builders CAPLine, which is 5 years
Maximum Interest Rates	Loans less than 7 years: $0 - $25,000 Prime + 4.25%: $25,001 - $50,000 Prime + 3.25%; Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75%; $25,001 - $50,000 Prime + 3.75%; Over $50,000 Prime + 2.75%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001 $700,000 = 3.0%; $700,000-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%
Who Qualifies	Must be a for-profit business & meet SBA size standards; 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)
Benefits to Borrowers	1. Working Capital - (LOC) Revolving line of Credit 2. Contract - can be finance all costs (excluding profit). 3. Seasonal - Seasonal working capital needs. 4. Builder - Finances direct costs when building a commercial or residential structure.

* Subject to Credit Approval

Program	International Trade
Minimum & Maximum Loan Amount	$125,000 – $5 million
Percent of Guaranty	90% guaranty (up to $4.5 million maximum guaranty) (Up to $4 million maximum guaranty for working capital)
Use of Proceeds	Term loan for permanent working capital, equipment, facilities, land and buildings and debt refinance related to international trade.
Maturity	Up to 25 years.
Maximum Interest Rates	Loans less than 7 years: $0 - $25,000 Prime + 4.25%; $25,001 - $50,000 Prime + 3.25%; Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75%; $25,001 - $50,000 Prime + 3.75%; Over $50,000 Prime + 2.75%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001-$700,000 = 3.0%; $700,001-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1million, less than 12 months .25%
Who Qualifies	Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty on loans with maturities of 15 years or greater if prepaid during first 3 years only. (5% year 1, 3% year 2 and 1% year 3). May pay up to 25% in any year with 21 day advance lender notification. Plus, engaged or preparing to engage in international trade or adversely affected by competition from imports.
Benefits to Borrowers	Long term financing to allow small business to compete more effectively in the international marketplace.

* Subject to Credit Approval

Program	Export Working Capital Program
Minimum & Maximum Loan Amount	$125,000 – $5 million
Percent of Guaranty	90% guaranty (up to $4.5 million maximum guaranty)
Use of Proceeds	Short-term, working capital loans for exporters. May be transaction based or asset-based. Can also support standby letters of credit.
Maturity	Generally one year or less, may go up to 3 years
Maximum Interest Rates	No SBA maximum interest rate cap, but SBA monitors for reasonableness.
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001-$700,000 = 3.0%; $700,001-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%
Who Qualifies	Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty on loans with maturities of 15 years or greater if prepaid during first 3 years only. (5% year 1, 3% year 2 and 1% year 3). May pay up to 25% in any year with 21 day advance lender notification. Plus, need short-term working capital for exporting.
Benefits to Borrowers	Additional working capital to increase Export sales without disrupting domestic financing and business plan.

* Subject to Credit Approval

Program	Export Express
Minimum & Maximum Loan Amount	$125,000 – $500,000
Percent of Guaranty	90% guaranty for loans of $350,000 or less; 75% guaranty for loans greater than $350,000
Use of Proceeds	Same as SBAExpress plus standby letters of credit.
Maturity	Up to 7 years for revolving Line of Credit including term out period. Otherwise, generally, working capital, machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.
Maximum Interest Rates	Loans $50,000 or less Prime+ 6.5%; Loans over $50,000 Prime +4.5%
Guaranty Fees	(No SBA fees on loans of $125,000 or less approved in FY 2018) Fee charged on guarantied portion of loan only. $150,001-$700,000 = 3.0%; $700,001-$1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million, less than 12 months .25%; Ongoing fee of 0.546%.
Who Qualifies	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).
Benefits to Borrowers	Fast turnaround; Streamlined process; Easy-to-use line of credit.

* Subject to Credit Approval