SBA Backed Loans
When you’ve approached every lender and every bank, but you’ve faced denials at every turn, what options do you have available? SBA-backed funds provide exceptional rates to help businesses from mom and pops to businesses earning $5m or less annually, and valued under $15m.
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SBA 504 loans
Developers wanted
SBA 504 loans are private loans backed by the SBA that are managed by a nonprofit organization called a Certified Development Company (CDC). These loans offer up to $5m for major fixed assets. The CDC’s mission is to provide fixed-rate loans that contribute to the community through the development of jobs and other economic contributions, including construction funding.
SBA 7a
Property, Equipment and Working Capital
The SBA 7a loan is the most common loan backed by the SBA. When a business needs to purchase property, high value equipment, or to access working capital funds to support daily operations and revenue generating activity, the 7a may be the right choice, especially if your business has been turned down by other lenders.
Working Capital
Manage expense, payroll and open-to-buy dollars
Working capital is critical for every business. Working capital is the total value of cash assets that can be quickly turned into cash, including stock on hand, accounts receivable, and business credit. SBA-backed Working Capital comes with very competitive rates and can help businesses attain the flexibility they need to remain competitive.
Commercial Real Estate
Purchase owner-occupied properties
Owner-occupied property helps your business purchase a valuable asset. Manage your costs as rental fees increase by owning your property. With an owner-occupied loan, you can also rent up to 49% of the usable space to other businesses to offset cost.
Construction Financing
Build your ideal property
SBA 504 loans can be applied to new construction, allowing you to build an ideal owner-occupied property from the ground up. Because Certified Development Corporations are experienced in construction funding, they can help determine the quality and credibility of contractors, track stages of construction, and schedule inspection of each stage to confirm completion prior to disbursement of funds.
Equipment Funding
Upgrade and expand operations with the right equipment
SBA-backed equipment funding provides low-cost loans to help your business expand operations, create jobs, and compete with larger providers in your market. What will you need to demonstrate? That you qualify as a for-profit small business, and that you have a clear case of business need.
Advantages
Open the door to opportunity with low-interest equipment, land, property, construction and working capital funds backed by the SBA.
Businesses that have been denied by banks are uniquely qualified for SBA-backed funds.
SBA-backed funds come with highly competitive terms
When you add jobs within your community you help the SBA fulfill their mission at the same time you fulfill yours.
We’ve given a few examples of the most popular types of loans that bring cash into your business quickly.
There is always more to learn.
Does my business qualify for an SBA loan?
To qualify, you must operate a for-profit business. The total value of business assets must be under $15 million and gross revenue must be under $5m annually. The business must be in operation a minimum of three years and have clear books to show profit and loss. Owners also will demonstrate they aren’t eligible for other loans and that they have used personal funds prior to seeking an SBA-backed loan.
What interest rates can I expect from an SBA loan?
SBA-backed loans come with fixed-rate and variable-rate terms, based on the type of loan and the amount of the loan. Variable rates start at base rate plus 4.25% for loans less than 7 years and base rate plus 4.75% for loans more than 7 years up to base rate plus 2.25% and base rate plus 2.75%. Fixed-rate loans start between 6-8% on loans $25,000 or less and drop to 5% for loans over $250,000.
Are there fees associated with SBA loans?
Disaster loans and short-term veteran express loans do not come with closing fees, however, most loans that businesses will seek for operational purposes will come with fees between 0.25% and 3%, depending on the loan. Speak with a broker about your specific goals and we will assist you in matching with the right program and lender.
Are there any businesses that don’t qualify for SBA loans?
Yes, gambling establishments, coin collectors, investment property managers, speculative investment firms, lenders, pyramid-based businesses, churches and nonprofits, and any business pursuing federally or locally illegalized activities are ineligible for SBA-backed funds.
Here's How To Get Started
Complete a Short Questionnaire
The information you provide will help us begin creating a plan for where you want to go. As we learn more about you, we’ll customize and adapt our solutions for your true needs.
Have an In-Depth Conversation with our Team
After reviewing the information, we’ll set up a conversation to understand your business more thoroughly. With the full picture of you and your business, we will work with our network to generate offers and showcase the best solutions to you.
Submit an Application
Our team will answer any questions you may have to this point. When you are content with the answers and information, we’ll help navigate you through the loan application process. Take Advantage of Continual Support. Things change. We get it. Our lending professionals and brokers will stand by to provide further advice or answer questions as needed, even after the initial application is complete.
What is the working capital ratio?
If you don’t have enough money to pay employees and keep the lights on, then the value of your long-term assets matters very little. That money, used for almost all daily expenses is referred to as working capital. Most businesses try to maintain a working capital ratio between 1.5 and 2.0. If you’re not sure what your ratio is, simply divide your firm’s annual liquid assets by its annual short-term expenses. The result is your working capital ratio.
Is working capital financing right for my firm?
If you are looking to make a large investment or a long-term purchase, it is usually better to focus on certain tools (like a real-estate loan). Working capital loans are usually better for short-term situations and boosting operational cash. If you are not in a rush for funds, other financing tools may be better for you, as working capital financing often comes with higher interest rates.
Will a factor impact my client relationships?
While not all factors interact with your clients in the same way, most clients won’t notice when you use a factor. In most situations, a simple notice of where to send payment is the only contact the client receives.
Are Hard Money Loans a safe option?
When you work with our network, you can rest assured that each lender has been thoroughly vetted, is licensed, and bears a reputation for integrity. All of our partners adhere to local and national laws and policies and meet established standards for credibility and trustworthiness. Additionally, if a Hard Money Loan is not the right tool for your business, our partners will tell you upfront and help you find a more appropriate financial solution. We are transparent with our terms and conditions and will answer any questions your team has. We want your business to feel safe and comfortable in its decision to work with us.