SBA loans are a great way to finance a business. Whether acquiring, merging, developing or expanding, an SBA loan program may be the perfect option for your business
1. Standard 7(a) Loan
Uses Include:
- Working Capital
- Debt Refinancing
- Equipment Purchase
- Commercial Real Estate Purchase
- New Construction
- Leasehold Improvements
- Furniture and Fixtures
- Business Acquisition
- Franchise Purchase
- Marketing / Advertising
- Hiring
Terms:
- Up to 25 years for loans that include commercial real estate.
- Up to 10 years for working capital loans
- Up to $5MM
Qualifications:
- No recent bankruptcy, foreclosures or tax liens
- Collateral
- 10% down payment
2. 504 Loan
Uses Include:
- Buy commercial real estate (land and buildings)
- Commercial Real Estate Improvements
- Construction of new facilities
- Renovation/updating of existing facility
- Loan lifespan equipment
Terms:
- Up to 20 years for loans that include commercial real estate.
- Loan amount up to $5MM
Qualifications:
- Real Estate must be 51%+ owner occupied
- 10% down payment
3. Export Loan
SBA Export Express Loan:
Up to $500K in working capital for exporters
SBA Export Working Capital Loans:
Up to $5MM to fund export transactions
SBA International Trade Loans:
Up to $5MM in working capital for exporters
- Terms: 3 - 25 years
- Qualifications: No recent BKS, foreclosures or tax liens Business must be an exporter
- Loan Amount: Up to $5MM
4. Cap Lines
Seasonal Line of Credit: Used to help with seasonal fluctuation in cash flow
Contract Line of Credit: Used to finance materials and labor associated with assignable contracts
Small Asset-Based LOC: Used to finance short-term assets like invoices but limited to $200K
- Uses: include Seasonal or short-term working capital needs
- Term: Up to 5 years
- Qualifications: No recent bankrupcy, foreclosures or tax liens, must use AR, inventory, PO’s, and/or contracts for as collateral
- Loan Amount: Up to $5MM