| SBA 7a LOAN SIZE: | Government guaranteed loans up to $5,000,000 |
| PROPERTY TYPE: | Owner occupied office, retail (including franchises), medical offices, self-storage, industrial, manufacturing, day-care centers, gas stations, assisted living facilities and most >50% business owner-occupied commercial real estate. |
| USE OF PROCEEDS: | Loans must contain a minimum of 25% business finance outside of real estate. |
| LOAN TO VALUE: | Up to 90% loan to value. First mortgage must be at least 50% of the total financing. |
| INTEREST RATE: | Floating quarterly at prime lending rate plus 2.25% – 2.75% or fixed rate over 5 year or 10 year Treasury Bill plus margin (please call for quote). |
| TERMS: | Up to 25 years fully amortizing with monthly payments. Full Recourse. Prepayment penalty 5%, 3%, 1%. No balloon term. |
| ELIGIBILITY (not all listed): | Actual or projected debt coverage ratio must be 1.3x or higher. Business must be in existence for a minimum of 2 years with 2 years financials. Principals must demonstrate minimum of 5 years related experience. |
| PROCESS/TIME FRAME: | Typically 60 days to close. |
| LOAN CLOSING COSTS: | SBA Packaging Fee (typically funded in the loan rate) Appraisal Environmental survey Phase I survey (if required) Title fees & miscellaneous filing fees Closing legal fees |
Submission Requirements for SBA 7a Loans:
- Three (3) years of business tax returns and year-to-date financial statements current within 60 days.
- Narrative describing what the business does (products, services, client base, location, years in business , etc.) including who the owners are (with % ownership noted).
- Purpose of financing requested as well as dollar amount.
- List details of all SBA loans borrower has had in past or present.
- 2 years of federal tax returns for all principals owning 20% or more of either the operating company or real estate holding company.
- Current personal financial statement of all principals.
