SBA 7a

SBA 7(a) loan program

  • SBA's primary loan program
  • Reduces risk to lenders by guaranteeing large portions of loans made to small businesses
  • Maximum SBA Guaranty $1,500,000 with a maximum Loan of $2,000,000
(Including all other loans to borrowers and affiliates)

CAP Lines:

  • CAPLines are the umbrella program under which the SBA helps small business meet their short-term and cyclical working-capital needs.
  • There are five short-term working-capital loan programs; Seasonal Line, Contract Line, Builders Line, Standard Asset-Based line, Small Asset-Based line.
  • CAPLines have a $2,000,000 maximum with the exception of the Small Asset-Based Line, which allows a maximum loan amount of $200,000.
  • CAPLines require Collateral Monitoring subject to a Borrowing Base Certificate, banc
  • serv through a tri-party agreement will service in accordance with SBA regulations.

SBA Express:

  • Term loans or Revolving Lines of Credit up to $350,000
  • Fast response from the SBA within 36-72 hours
Patriot Express Loan Initiative: (pilot program through December 31, 2010)
  • Patriot express is designed to support and assist those in the military community wanting to establish or expand small businesses.
  • Loan amount up to $500,000

Interest Rates:

  • The Bank sets the rate not to exceed SBA maximums
  • Rate may be fixed or variable.
  • Higher rates are permitted on loans less than $50,000.
  • SBA Loans have no prepayment penalty unless the term is 15 years or longer.
(Prepayment penalty 5%, 3%, 1%; for years 1-3)

Eligible Uses of Proceeds:

  • Purchase of Fixed Assets
  • Inventory
  • Working Capital
  • Debt Refinance (with limitations)
  • Business Acquisitions
  • Real Estate
• Long Term Equipment (show proof of useful life)