Community Banking SBA Line of Credit* Community Banking SBA Term Loan* SBA 7(A)
Loan
SBA 504
Loan

Typical
Project Size

$10,000 to $350,000 $350,000 to
$5 million
$1 million to
$21 million

Interest Rate

Competitive market rates up to
the SBA rate maximums
Competitive
market rates
  • Below-market rates
  • Long-term fixed rates

Term /
Amortization

4 year revolving period followed by
6 year term out
period for a maximum 10 year note
  • 5 year term, up to 20 year repayment (7 year max for real estate)
  • 5 year term, 7 year max for equipment or vehicle
  • 25 years for
    real estate
  • 10 to 15 years
    for equipment
  • 10 years for business acquisition
  • All loans are
    fully amortized
  • No balloon payment
  • 25 years for
    real estate
  • 10 years for equipment
  • All loans are
    fully amortized

Loan Purpose

Support short term cash needs for working capital purposes such as:
  • Finance pre-season or project startup costs
  • Pay expenses until accounts receivable collected.
Support long term cash needs using long term assets as collateral, such as:
  • Real estate financing (no construction loans)
  • Purchase equipment
  • Purchase vehicles
  • Purchase, construct or expand real estate facility (51% owner occupancy for existing buildings, 67% for new construction)
  • Purchase equipment
  • Refinance debt
  • Provide working capital
  • Construct leasehold improvements
  • Inventory
  • Purchase, construct or expand a real estate facility (51% owner occupancy for existing buildings and 67% for new construction)
  • Purchase equipment

Down Payment /
Loan-to-Value

Varies
  • 10% for business acquisition
  • Up to 100% financing for expansion or refinance
  • 10% of eligible project costs for multi- purpose or special purpose properties
  • 10% of eligible project costs for established business in multi-purpose property
  • 15% of eligible project costs for special use property
  • 10% minimum injection for equipment

Qualification Criteria

Must meet SBA specific eligibility requirements.
SBA guaranteed loan can be made only if the borrower is unable to obtain credit from lenders under their standard lending practices.
Including its affiliates, tangible net worth not in excess of $15 million and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years not in excess of $5 million.