SBA 7a Loans
SBA 7a Loans:
Borrower Benefits
· Long repayment terms, reducing monthly payments
· Frees up cash flow to expand your business
· Low down payment of as little as 10% on multi-purpose real estate acquisitions
· And as little as 15% on single-purpose real estate acquisitions
· Financing available for most industry types including: hotel/motels, gas station/convenience stores, restaurants and day cares
Loan Amounts:
Loans available from $150,000, to presently $2M, but soon to be $5M
Use of Proceeds:
· Owner Occupied Real estate − purchase, construction, renovation or refinance of commercial real estate.
· Majority of space must be owner-occupied. Loans up to $2.0 million
· Business acquisition − business, franchise or professional practice. Loans up to $2.0 million
· Machinery & equipment − purchase or refinance. Loans up to $1.5 million
· Start-up – franchised businesses such as restaurants and hotel/motel. Loans up to $2.0 million
Uses:
· Real estate − up to 90% financing, up to 25 years,
· Prepayment penalty for initial 3 years, none after the end of year 3
· Business acquisition − up to 80% financing, up to 10 years, No prepayment penalty
· Refinance – up to 100% financing, up to 25 years, Prepayment applicable for initial 3years on terms greater than 15 years
Terms:
· Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction
· SBA Guarantee Fee is paid directly to U.S. Small Business Administration. Amount varies based on loan/guarantee amount. Other customary fees also apply
· All 7a loans are fully amortized and are assumable
Because conventional loans are so tight, if not non-existent, SBA 7a loans are a God send for owner Occupiers.
Act now as this Government program will be quickly over booked.
Borrower Benefits
· Long repayment terms, reducing monthly payments
· Frees up cash flow to expand your business
· Low down payment of as little as 10% on multi-purpose real estate acquisitions
· And as little as 15% on single-purpose real estate acquisitions
· Financing available for most industry types including: hotel/motels, gas station/convenience stores, restaurants and day cares
Loan Amounts:
Loans available from $150,000, to presently $2M, but soon to be $5M
Use of Proceeds:
· Owner Occupied Real estate − purchase, construction, renovation or refinance of commercial real estate.
· Majority of space must be owner-occupied. Loans up to $2.0 million
· Business acquisition − business, franchise or professional practice. Loans up to $2.0 million
· Machinery & equipment − purchase or refinance. Loans up to $1.5 million
· Start-up – franchised businesses such as restaurants and hotel/motel. Loans up to $2.0 million
Uses:
· Real estate − up to 90% financing, up to 25 years,
· Prepayment penalty for initial 3 years, none after the end of year 3
· Business acquisition − up to 80% financing, up to 10 years, No prepayment penalty
· Refinance – up to 100% financing, up to 25 years, Prepayment applicable for initial 3years on terms greater than 15 years
Terms:
· Rates are based on a spread over the Prime Lending Rate. Rates vary depending on the specific strengths of the transaction
· SBA Guarantee Fee is paid directly to U.S. Small Business Administration. Amount varies based on loan/guarantee amount. Other customary fees also apply
· All 7a loans are fully amortized and are assumable
Because conventional loans are so tight, if not non-existent, SBA 7a loans are a God send for owner Occupiers.
Act now as this Government program will be quickly over booked.
