SBA Loans:  Your Break Down

The Small Business Administration (SBA) offers a variety of SBA Lender Programs (LP) and SBA Loan Programs.   This page gives you the high lights to the SBA’s Loan Program.  If you would like more information on the SBA Loan Programs contact us through the "Contact Us" tab.
 

The Certified Lenders Program (CLP) was designed to provide quick service on loan applications.  Lenders must  have a successful SBA lending track record and a thorough understanding of SBA policies and procedures to participate in the Certified Lenders Program (CLP).

The Preferred Lenders Program (PLP) is another step in SBA’s process of "streamlining" the procedures necessary to provide SBA Loans to the small business community.
  

 

Here Are The Most Common SBA Loans
Small Business Loans!

SBA LOANS -

BY LOAN TYPE

SBA LOANS - 

SBA-EXPRESS LOAN

SBA LOANS –

7(a)  SBA LOAN

SBA LOANS -

504 SBA LOAN

SBA LOANS -
PATRIOT
EXPRESS LOANS

 Is It A Loan Or

Line Of Credit

 Can Be Either

 Loan

 Loan

 Loan

 SBA Loans Offer

These Solutions

 A very streamlined loan application process.  This SBA Loan is to get access to working capital funds, purchase inventory, land, infrastructure (buildings) and / or equipment.

 This SBA Loan is the flagship product within the SBA Loan System.  This SBA Loan is generally a longer term loan which can be used for business expansion, working capital, business start-ups, buy existing businesses and / or buy Real Estate.

 This SBA Loan is a longer term loan which is used to purchase Commercial Real Estate, assist in job creation within your local community (HOT TOPIC FOR 2009 and President Obamas’s Economic Plan), purchase machinery or equipment and / or to expand your existing business operations.

This SBA Loan is for Veterans, Military Members and Their Families.  SBA has made big  changes with these SBA Loans. 

This SBA Loan has a very streamlined application process and quick decision on approval.  This SBA Loan can be used to purchase land, inventory, existing business, business start up, buildings and / or equipment for your business.

 Our input on what

is the best fit

for each

SBA Loan Type.

 This SBA Loan is for a "For Profit" business venture and it can be used in many different industries.

 This SBA Loan is the most common SBA Loan and is designed for a "For Profit" business venture and can also be used in many different industries, such as:

New Business Start Ups (new and start up mode), recently acquired or one you want to acquire.

 This SBA Loan is for a "For Profit Business that already exists. 

New worth of the business needs to be less than $8.5 Million and Net Profits after taxes needs to be greater than $ 3 Million.

 This SBA Loan is design for our Veterans and members of the US Military who are ready to buy, start  or expand their existing business.  Family members of Veterans are eligible under certain criteria .  If you are a veteran you must check this out.  Great Deal For Veterans.

 SBA Loans -

Minimum

and

Maximum

SBA Loans for this loan type range from

$ 100,000 -

$ 350,000

SBA Loans for this loan type:

$ 1.5 Million (SBA Loan Guaranty cannot exceed this amount)

$ 2 Million is the maximum amount of this SBA Loan Type.

 SBA Loans for this loan type:

$ 150,000 to

$ 5.2 Million Maximum

 

 SBA Loans for this loan type:

 

Up To $ 500,000

 SBA Loans -

Current Rates

 Lines of Credit or Loan Rates for SBA Express Loans that are less than $ 50,000 are PRIME + 6.5%

Lines of Credit or Loan Rates for SBA Express Loans that are greater than $ 50,000 are PRIME + 4.5%

 This SBA Loan Type can be fixed or variable (WE STRONGLY SUGGEST THE FIXED)

For SBA 7(a) Loans that are less than 7 years the rates are PRIME + 2.25%

For SBA 7(A) Loans that are more than 7 years the rates are PRIME + 2.75%

 This SBA Loan Type can be fixed or variable (WE STRONGLY SUGGEST THE FIXED)

The Rates and terms are negotiated with the Bank and Borrower.

SBA Loan: The rate is set when debenture is sold.

 This SBA Loan Type can be fixed or variable (WE STRONGLY SUGGEST THE FIXED)

For SBA Patriot Express Loans that are less than 7 years the rate will be no more than PRIME + 2.25%

For SBA Patriot Express Loans that are greater than 7 years, the rate will be no more than PRIME + 2.75%

 Can SBA Business

  Help You

with these

SBA Loans?

 Yes, Most definitely.  SBA Business has a team of experts that handle these loans and understand what the Banks are looking for in your packet.  (This is very important)  Yes, Most definitely.  SBA Business has a team of experts that handle these loans and understand what the Banks are looking for in your packet.  (This is very important)  Yes, Most definitely.  SBA Business  has a team of experts that handle these loans and understand what the Banks are looking for in your packet.  (This is very important) Yes, Most definitely.  SBA Business has a team of experts that handle these loans and understand what the Banks are looking for in your packet.  (This is very important)

 

 Contact Us Now To Start Your Process.

 

Acceptable Business Types and Applicants
with Additional Considerations For SBA Loans

 

SBA LOANS FOR FRANCHISES – are eligible except in situations where a franchisor retains power to control operations to such an extent as to be tantamount to an employment contract. The franchisee must have the right to profit from efforts commensurate with ownership.

SBA LOANS FOR RECREATIONAL FACILITIES AND CLUBS - are eligible provided: (a) the facilities are open to the general public, or (b) in membership only situations, membership is not selectively denied to any particular group of individuals and the number of memberships is not restricted either as a whole or by establishing maximum limits for particular groups.

SBA LOANS FOR FARMS AND AGRICULTURAL BUSINESSES – are eligible; however, these applicants should first explore the Farm Service Agency (FSA) programs, particularly if the applicant has a prior or existing relationship with FSA.

SBA LOANS FOR FISHING VESSELS - are eligible; however, those seeking funds for the construction or reconditioning of vessels with a cargo capacity of five tons or more must first request financing from the National Marine Fisheries Service (NMFS), a part of the Department of Commerce.

SBA LOANS MEDICAL FACILITIES - hospitals, clinics, emergency outpatient facilities, and medical and dental laboratories are eligible. Convalescent and nursing homes are eligible, provided they are licensed by the appropriate government agency and services rendered go beyond those of room and board.

SBA LOANS FOR AN ELIGIBLE PASSIVE COMPANY (EPC) is a small entity which does not engage in regular and continuous business activity. An EPC must use loan proceeds to acquire or lease, and/or improve or renovate real or personal property that it leases to one or more Operating Companies for conducting the Operating Company’s business.

SBA LOANS FOR CHANGE OF OWNERSHIP – Loans for this purpose are eligible provided the business benefits from the change. In most cases, this benefit should be seen in promoting the sound development of the business or, perhaps, in preserving its existence. Loans cannot be made when proceeds would enable a borrower to purchase: (a) part of a business in which it has no present interest or (b) part of an interest of a present and continuing owner. Loans to effect a change of ownership among members of the same family are discouraged.

SBA LOANS FOR ALIENS – are eligible; however, consideration is given to the type of status possessed, e.g., resident, lawful temporary resident, etc. in determining the degree of risk relating to the continuity of the applicant’s business. Excessive risk may be offset by full collateral. The various types of visas may be discussed in more detail with the local SBA office.

SBA LOANS FOR PROBATION OR PAROLE – applications will not be accepted from firms where a principal (any one of those required to submit a personal history statement, SBA Form 912):

    *  is currently incarcerated, on parole, or on probation;
    *  is a defendant in a criminal proceeding; or
    *  whose probation or parole is lifted expressly because it prohibits an SBA loan.

This restriction would not necessarily preclude a loan to a business, where a principal had responded in the affirmative to any one of the questions on the Statement of Personal History. These judgments are made on a case by case evaluation of the nature, frequency, and timing of the offenses. Fingerprint cards (available from the local SBA office) are required any time a question on the form is answered in the affirmative.

Specific Types Of Businesses Not Eligible 
For SBA Loans Include:

SBA LOANS FOR INELIGIBLE BUSINESSES:  Businesses cannot be engaged in illegal activities, loan packaging, speculation, multi sales distribution, gambling, investment or lending, or where the owner is on parole.

SBA LOANS FOR REAL ESTATE INVESTMENT firms exist when the real property will be held for investment purposes – as opposed to loans to otherwise eligible small business concerns for the purpose of occupying the real estate being acquired.

SBA LOANS FOR OTHER SPECULATIVE ACTIVITIES are those firms developing profits from fluctuations in price rather than through the normal course of trade, such as wildcatting for oil and dealing in commodities futures, when not part of the regular activities of the business. Dealers of rare coins and stamps are not eligible.

SBA LOANS FOR LENDING ACTIVITIES include banks, finance companies, factors, leasing companies, insurance companies (not agents), and any other firm whose stock in trade is money.

SBA LOANS FOR PYRAMID SALES PLANS are characterized by endless chains of distributors and sub-distributors where a participant’s primary incentive is based on the sales made by an ever- increasing number of participants. Such products as cosmetics, household goods, and other soft goods lend themselves to this type of business.

SBA LOANS FOR ILLEGAL ACTIVITIES are by definition those activities which are against the law in the jurisdiction where the business is located. Included in these activities are the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that permits illegal prostitution.

 SBA LOANS FOR GAMBLING ACTIVITIES include any business whose principal activity is gambling. While this precludes loans to race tracks, casinos, and similar enterprises, the rule does not restrict loans to otherwise eligible businesses, which obtain less than one-third of their annual gross income from either: 1) the sale of official state lottery tickets under a state license, or 2) legal gambling activities licensed and supervised by a state authority.

SBA LOANS FOR  CHARITABLE, RELIGIOUS, OR OTHER NON-PROFIT or government-owned corporations, consumer and marketing cooperatives, and churches and organizations promoting religious objectives are not eligible.
 

 SBA BUSINESS HAS THE EXPERTISE TO ASSIST
YOU IN ACQUIRING A SBA LOAN

We can also assist you in the following areas: