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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
  • Inventory
  • 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.