What is an SBA loan?

An SBA (Small Business Administration) loan is a loan program designed by the government to help small to medium-sized businesses obtain financing that is otherwise difficult to secure through regular commercial means.

SBA loans are basically long- term in nature, usually with a maturity of 5 to 10 years and 25 years for real estate.

What can SBA loans be used for?

• Expansion of an existing business
• Purchase of an existing business
• Startup of a new business
• The loan also covers…
  • Machinery and Equipment
  • Leasehold Improvements
  • Consolidation of business debts
  • Refinancing
  • Purchase of real estate

How much can I borrow?

Business Loan range - $125,000 to $1,000,000. (Please inquire for requests exceeding loan range.)

Who can apply for an SBA loan?

Any small or medium size business owned and operated for profit.

Qualifying Criteria:

Ability to repay the loan on time from the projected operating cash flow.

Feasible business plan, management expertise and the commitment necessary for success.

Applicant must demonstrate good character. A good credit report satisfies this requirement.

To adequately secure the loan, you must pledge sufficient assets to the extent they are reasonably available. Personal guaranties are generally required from all principals owning 20 percent or more of the business. Liens on personal assets of the principals also may be required. No loan will be declined for insufficient collateral alone, as long as all available and worthwhile collateral (both business and personal) is pledged as security for the loan.

Reasonable personal contribution and/or business equity, which along with the loan proceeds enable the borrower to operate the business on a sound financial basis (for new businesses, this includes the resources to withstand start-up expenses and the initial operating phase.