SBA LOAN PROGRAMS
The SBA Program
Resultsfs arranges SBA loans on a national level for growing businesses. The SBA program allows business owners to purchase and refinance commercial properties with as little as 10% down.
SBA 7(a) Loan
The specific terms of SBA loans are negotiated between a borrower and an SBA-approved lender. In general, the following provisions apply to all SBA 7(a) loans.
Loan Amounts
7(a) loans have a maximum loan amount of $5 million. SBA does not set a minimum loan amount. The average 7(a) loan amount in fiscal year 2015 was $371,628.
Fees
Loans guaranteed by the SBA are assessed a guarantee fee. This fee is based on the loan’s maturity and the dollar amount guaranteed, not the total loan
Interest Rates
The actual interest rate for a 7(a) loan guaranteed by the SBA is negotiated between the applicant and lender and subject to the SBA maximums. Both fixed
Percentage of Guarantee
SBA can guarantee as much as 85 percent on loans of up to $150,000 and 75 percent on loans of more than $150,000. SBA’s maximum exposure amount is $3,750,000. Thus,
Use of 7(a) Loan Proceeds
If you are awarded a 7(a) loan, you can use the loan proceeds to help finance a large variety of business purposes. However, there are a few restrictions. For example, proceeds can’t be used
7(a) Loan Program Eligibility
The requirements of eligibility for the 7(a) loan program are based on specific aspects of the business and its principals. As such, the key factors of eligibility are based
Ineligible Businesses
A business must be engaged in an activity SBA determines as acceptable for financial assistance from a federal provider. The following list of businesses types
Special Considerations
Special considerations apply to some types of businesses and individuals, which include: Franchises are eligible except when a franchiser retains power
SBA 504 Loan
CDC/504 Loan Amounts, Interest Rates & Fees
Maximum loan amounts are determined by how funds will be used based on which goal they support from the list below:
Job Creation
The maximum SBA debenture is $5 million for meeting the job creation criteria or a community development goal.
Public Policy
The maximum SBA debenture is $5 million or $5.5 for small manufacturing or when meeting the public policy goals of energy reduction or alternative fuelsl.
Manufacturing
The maximum debenture for small manufacturers is $5.5 million. A small manufacturer is defined as a business with its primary business classified