| 7(a) Loans | 504 Loans | |
|---|---|---|
| Use Of Funds | To purchase real estate and/or business assets, working capital, business acquisition, partner buyout, refinance. | To purchase or construct owner-occupied commercial real estate or equipment. |
| Max. Loan Amount | $5 Million | $20+ Million |
| Structure | One bank loan | Bank Loan CDC Loan |
| Required Injection | Minimum of 10% | Existing Business – 10% Start-Up or Special-Use Property – 15% Start-Up & Special-Use Property – 20% |
| Interest Rate | Maximum of 2.75% above Wall Street journal Prime, floating | Fixed rates determined by the Lender and CDC |
| Term | Up to 25 years | Real Estate Lender Loan – up to 25 years CDC Loan – 20-25 years Lender and CDC Loans – 10 years |
| Prepayment Penalty | Declining 3 Year Prepayment Penalty | Declining 10 Year Prepayment Penalty |
| Collateral | Subject property Additional collateral may be required by the SBA | Lender Loan: 1st mortgage on subject property CDC Loan: 2nd mortgage on subject property |
| Processing Fees | Based on loan amount; between 2.00% – 3.75% | SBA Guaranty Fee: 0.50% CDC Processing Fee: 1.50% Funding Fee: 0.25% Bond Broker Fee: 0.40% |
For more information please contact our SBA Lending Team :
MISSOURI – St. Louis
Carolyn K. Gegg
VP of SBA Lending
Cell Phone: (636) 628-0944
KANSAS- Kansas City
Patricia Case
VP of SBA Lending
Phone: 816-337-2421
INDIANA – Indianapolis
Joseph Reynolds
VP of SBA Lending
Phone: 317-506-7556