The U.S. Small Business Administration (SBA) offers numerous loan programs to assist small businesses.

• The SBA is primarily a guarantor of loans made by banks and non-bank lenders.

SBA loans may help your business gain access to capital that may not otherwise be available with conventional bank financing. Businesses can receive financing on more flexible terms with lower down payments, longer amortizations and other collateral and income considerations. 

• Purchase owner-occupied real estate

• Construction and expansion of business premises

• Leasehold improvements

• Purchase machinery, equipment, furniture and fixtures

• Business acquisition

• Debt refinance

• Working capital

• Inventory purchase

• Start-up operations

• Certain loan closing costs

• Business Acquisitions

• Loans to professionals – Doctors, Dentists, Veterinarians

• Pet boarding facilities/pet hotels

• Child care facilities

• Real estate financing

• Franchises (SBA eligible)

• Car washes

• General automotive

• Service companies

• Manufacturers and wholesalers

• Hotels

• Grocery stores

• Businesses that do not occupy at least 51% of the property they are requesting financing on existing owner-occupied real estate

• Business that will not occupy at least 60% of the property they are requesting financing on for owner-occupied real estate to be constructed

• Investment property

• Non-profit entities

• Businesses that promote religion

• Up to 10 years for non-real estate projects

• Up to 25 years for owner-occupied real estate projects

• Up to $5,000,000

• Purchase of owner-occupied commercial real estate

• Construction/renovation of owner-occupied commercial real estate

• Leasehold improvements

• Purchase of equipment

• Purchase of furniture/fixtures

• Business acquisitions

• Partner buyouts

• Debt refinance

• Purchase inventory working capital

• Maximum of $350,000 with SBA guarantees ranging from 75% – 85%

• The loans are credit scored through SBA’s credit scoring model, subject to a minimum credit score

• The loans have relaxed underwriting and collateral requirements compared to SBA 7(a) loans over $350,000

• Terms, interest rates and conditions are the SBA 7(a) loans over $350,000

• Used to fund the short-term operating capital needs of the business

• SBA term can be for up to 7 years and have to be reviewed and renewed annually, similar to conventional commercial revolving lines of credit

• May or may not be monitored by a Borrowing Base Certificate, depending on how conventional commercial revolving lines of credit are serviced

• Loans > $50,000, Term < 7 years: Maximum interim rate = WSJ + 2.25%

• Loans > $50,000, Term > 7 years: Maximum interest rate = WSJ + 2.75%

• Adjusts as frequently as monthly with any change in WSJ

Maximum of $5,000,000 (SBA guarantees lesser of 75%, or $3,750,000)

• Up to 10 years for heavy equipment projects

• Up to 25 years for owner-occupied real estate projects

• Total project is not limited

• Purchase of owner-occupied commercial real estate

• Construction/renovation of owner-occupied commercial real estate

• Purchase of heavy equipment