The SBA 7(a) loan — AN OVERVIEW
What Does The SBA Look For In An Applicant?
- Demonstrate ability to repay with cash flow
- Be a person(s) of good character
- Management capability
- Borrower’s equity contribution
- Owners of 20% or more required to personally guarantee the SBA loan
- Demonstrate a need for desired credit
How Can Funds From The SBA 7(a) loan Be Used?
- Buy machinery and equipment
- Business expansion
- Purchase existing business, including buyouts
- Augment working capital
- Refinance debt
- Start a franchise or new business
- Make leasehold improvements/build out including remodeling or renovation
- Refinance any outstanding venture capital debt to less expensive SBA debt
- Purchase owner-occupied commercial real estate
Who Is Eligible For A 7(a) Loan?
- Operate a for-profit business
- Engaged in or proposed to do business in the US
- Possess reasonable owner equity to invest
What Are The Interest Rates And Term Of Loan?
- 2.75% above Prime adjusted quarterly
- Amortization is 25 years maximum on fixed assets. Ten years maximum on working capital, or a blend for a mixed use of funds.
- Processing fees — 2% guarantee on loans under $150,000, and up to 3.75% on higher amounts.
- Other expenses include usual and customary legal and closing costs.
What Are The Loan Amounts?
- As little as $50,000, and as much as $5 million.
Are There Any Geographic Limitations?
- There are no location limitations. The SBA 7(a) loan can be originated in St. Louis for businesses located anywhere in the United States.
|TO FIND OUT MORE OR APPLY, CONTACT A FORTUNE BANK SBA LOAN SPECIALIST, TODAY.|
To discuss your creative financing options, just talk to Carolyn Gegg at 636.628.6984 or e-mail her at Cgegg@Fortunefincorp.comm.
Learn more at: fortunefincorp.com/sba-loans.
Loans are subject to program requirements and Fortune Bank lending guidelines.