SBA options
| PROGRAM | MAXIMUM LOAN AMOUNT | PERCENTAGE OF GUARANTY | USE OF PROCEEDS | MATURITY | MAXIMUM INTEREST RATES | GUARANTY FEES | WHO QUALIFIES | BENEFITS TO BORROWERS |
|---|---|---|---|---|---|---|---|---|
| 7(a) | $5 million | 85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75M maximum guaranty) |
Term Loan. Expansion/renovation; new con-struction, purchase land or buildings; purchase equipment, fixtures, lease-hold improve-ments; working capital; refinance debt for com-pelling reasons; seasonal line of credit, inventory or starting a business |
Depends on ability to repay. Generally, working capital & machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years. |
VARIABLE Loans less than 7 years: $0 - $25,000 Prime + 4.25% $25,001 - $50,000 P + 3.25% Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75% $25,001 - $50,000 P + 3.75% Over $50,000 Prime + 2.75% FIXED RATE www.colsonservices.com Click: News & Rates |
Charged on guaranteed portion of loan only. $150,000 or less = 2% (Lenders may retain no more than 25% of this fee); $150,001-$700,000 = 3%; $700,001- $1,000,000 = 3.5%; plus 3.75% on guaranty por-tion over $1 million. Loans 12 months or less .25% Ongoing lender fee of 0.55%. |
Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty for loans with maturities of 15 years or more if prepaid during first 3 years. (5% year 1, 3% year 2 and 1% year 3) |
Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years) |
| 7(a) Small Loans Is any 7(a) loan $350,000 and under, except the Community Advantage and Express loans |
$350,000 | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Plus, all loan applications will be credit scored by SBA. If not an acceptable score, the loan can be submitted via full standard 7(a) or Express. | Same as 7(a) Loans |
| SBA Express | $1,000,000 Per Notice 5000-20025 (reverts to $350,000 Jan. 1, 2021) |
50% | May be used for revolv-ing lines of credit (must have term-out period not less than draw period) or for a term loan. | LOC: Max period Revolver = 60 mo.; Max term out period = 60 mo. For total of 10 yrs. Term loan: same as 7(a) |
Loans $50,000 or less; Prime+ 6.5% Loans over $50,000; Prime + 4.5% |
Same as 7(a) loan program | Same as 7(a) loan program | Fast turnaround; Streamlined process; Easy-to-use line of credit |
| SBAExpress Loans to Veterans | Processed under SBAExpress $1,000,000 Per Notice 5000-20025 (reverts to $350,000 Jan. 1, 2021) |
Same as SBAExpress |
Same as SBAExpress |
Same as SBAExpress |
Same as SBAExpress |
Upfront Guaranty fee will permanently be ZERO! | Same as 7(a) plus, small business must be owned and controlled (51%+) by one or more of the following groups: veteran, active-duty military in TAP, reservist or National Guard member or a spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service, or a service-connected disability. Veteran eligibility must be docu-mented. | Same as SBAExpress |
| CAPLines: 1. Working Capital; 2. Contract; 3. Seasonal; and 4. Builders |
$5 million | Same as 7(a) Loans | Finance seasonal and/or short-term working capital needs; cost to perform; construction costs; advances against existing inventory and receivables; consolida-tion of short-term debts. May be revolving. | Up to 10 years, except Builder’s CAPLine, which is 5 years | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans. Plus, all lenders must execute Form 750 | 1. Working Capital - (LOC) Revolving Line of Credit 2. Contract - can finance all costs (excluding profit). 3. Seasonal - Seasonal working capital needs. 4. Builder - Finances direct costs in building a commer-cial or residential structure |
| Community Advantage Mission-focused lenders only. Expires 09/30/2022 |
$250,000 | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans | Prime plus 6% | Same as 7(a) Loans | Same as 7(a) Small Loans | Same as 7(a) PLUS lenders must be CDFIs, CDCs, micro-lender or SBA Intermediary Lenders tar-geting underserved market. |
| International Trade | $5 million | 90% guaranty (up to $4.5M maximum guaranty) (Up to $4M maxi-mum guaranty for working capital ) |
Term loan for permanent working capital, equip-ment, facilities, land and buildings and debt refinance related to international trade. |
Up to 25 years. | Same as 7(a) Loans | Same as 7(a) Loans | Same as 7(a) Loans. Plus, engaged or preparing to engage in international trade or adversely affected by competition from imports. | Long term financing to allow small business to compete more effectively in the international market-place. |
| Export Working Capital Program | $5 million | 90% guaranty (up to $4.5M maximum guaranty) |
Short-term, working-capital loans for export-ers. May be transaction based or asset-based. Can also support standby letters of credit |
Generally one year or less, may go up to 3 years | No SBA maximum interest rate cap, but SBA monitors for reasonableness | 0.25% of guaranteed portion with maturity 12 months or less; 0.525% with maturity between 13 and 24 months; 0.80% with maturity between 25 and 36 months. | Same as 7(a) Loans. Plus, need short-term work-ing capital for direct or indi-rect exporting. |
Additional working capital to increase export sales without disrupting domestic financing and business plan. |
| Export Express | $500,000 | 90% guaranty for loans of $350,000 or less; 75% guaranty for loans greater than $350,000 |
Same as SBAExpress plus standby letters of credit | Term same as 7(a). LOC up to 7 years | Same as SBAExpress | Same as 7(a) Loans | Applicant must demonstrate that loan will enable them to enter a new, or expand in an existing export market. Business must have been in operation for at least 12 months (though not neces-sarily in exporting). | Fast turnaround; Streamlined process; Easy-to-use line of credit Loan can be for direct or indirect exporting. |
| 504 Loans Provided through Certified Development Companies (CDCs) which are licensed by SBA |
504 CDC maxi-mum amount ranges from $5 million to $5.5 million, depending on type of business or project. |
Project costs financed as fol-lows: CDC: up to 40% Lender: 50% (Non-guaranteed) Equity: 10% plus additional 5% if new business and/or 5% if special use property |
Long-term, fixed-asset loans; Lender (non-guaranteed) financing secured by first lien on project assets. CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien. | CDC Loan: 10, 20 or 25-year term fixed interest rate. Lender Loan: Unguaranteed financing may have a shorter term. May be fixed or adjustable interest rate |
Fixed rate on 504 Loan estab-lished when the debenture backed loan is sold. Declining prepayment penalty for 1/2 of term. |
SBA upfront guaranty fee on a debenture is 0.50% (50 basis points). The annual service fee will be 0.4517% (47.17 basis points) of the outstand-ing balance. | Alternative Size Standard: For-profit businesses that do not exceed $15M in tangible net worth, and do not have an average two full fiscal year net income over $5M. Owner Occupied 51% for existing building or 60% for new construction. |
Low down payment - equity(10,15 or 20 percent) (The equity contribution may be borrowed as long as it is not from an SBA loan) Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons |
| 504 Loan Refinancing Program (Permanent) Provided through Certified Development Companies (CDCs) which are licensed by SBA |
Same as 504 (see SBA Policy Notice 5000-1382 dated 05/26/16 and 5000-1939 dated 11/17/16 for complete information) |
Loan to Value (LTV) with Quali-fied Debt(s) 90%. For projects that include “Eligible Business Expenses (EBE)” the LTV is 85%. EBE may not exceed 20% of the fixed asset ap-praisal value |
Refinancing of Qualified Debt (85% of the pro-ceeds must had been originally used to acquire an eligible fixed asset), and “Other Secured Debt” secured by the Eligible Fix Asset. May include the financing of eligible Business Operat-ing Expenses as part of the refinancing. | Same as 504 | Same as 504 | On Debt Refi without Expansion: SBA upfront guaranty fee will be 0.50% (50 basis points). The annual service fee will be 0.4517% plus 0.0348% for a total of 0.4865% (45.17 basis points plus 3.48 basis points) of the outstand-ing balance. | Loan(s) to be refinanced can’t be subject to a guaranty by a Federal agency, can’t be a Third Party Loan which is part of an existing SBA 504 project and must have been current on all payments for the past 12 months. Both the business and loan(s) to be refinanced must be at least 2 years old. | Business can access equity in their commercial real estate for business operat-ing expenses or refinance property on reasonable terms. Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons |
| Non-7(a) Loans Microloans Loans through nonprofit lending organizations; tech-nical assistance provided. |
$50,000 | Not applicable | Working capital, sup-plies, machinery & equip-ment, fixtures; etc. Intermediary may chose to refinance debt. Can-not be used for real estate. | Shortest term possible, not to exceed 6 years |
Negotiable with intermediary. Subject to either 7.75% or 8.5% above intermediary cost of funds. |
No guaranty fee | Same as 7(a) Loans | Direct loans from nonprofit intermediary lenders; Fixed-rate financing; Very small loan amounts; Technical assistance Available. |