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The SBA Loan Guaranty Program provides the
Bank up to 85% guaranty on Long term loans
when the proceeds of the loan are used for
fixed asset purchases, working capital,
or the refinance of existing debts for owner-occupied
business.
• Up to 90% financing for the purchase
of land and /or building.
• Up to 80% financing for the purchase
of machinery and equipment.
• Up to 90% financing for the expansion
of an existing facility.
• Can refinance 100% of existing debt
under certain conditions.
• Up to 80% financing for the purchase
of an existing business.
• Can finance working capital and
closing costs in conjunction with the above.
• Operating, for profit Corporations,
Limited Liability Corporations, Partnerships.
Or Sole Proprietorships.
• Business in existence for minimum
of two years.
• Minimum loan of $150,000.
• Maximum loan of $2,000,000.
• Loans above $2,000,000 will be looked
at using the SBA's "piggy back"
loan program.
• The maximum loan amount under the
"piggy Back" program is $3,500,000.
• Up to 25 year financing for real
estate acquisitions, real estate refinances
land purchases or construction loan take-outs.
• Up to 10 year financing for the
purchase of an existing business.
• Up to 10 year financing for the
purchase of machinery and equipment.
• Up to 7 year financing on working
capital, and closing costs.
• Loans will be priced on a variable
basis, tied to the New York Prime Rate and
will adjust quarterly.
• Minimum pricing will be at New York
Prime + 1.50%
• Maximum pricing will be at New York
Prime + 2.75%
• Owner must be actively involved
in the business operations.
• Business must have adequate debt
service coverage based on historical earnings.
• Business must have an adequate debt
to worth based on the adjustments to the
pro forma balance sheet using the benefits
of the new loan.
• Borrower's business must occupy
no less than 51% of an existing building
and no less than 67% of the "to be
built" facility.
• Alter Ego Ownership of the company's
real estate is allowed.
• Credit score of 660 or higher.
• Experience in the type of business
you are attempting to acquire.
• At least 20% down from money on
hand (there are exceptions).
• No unsecured loans are available
under this program.
• Goodwill is considered to be an
asset when a business is being purchased.
• If the SBA loan is under-collateralized
based on the SBA Liquidation values, the
guarantor may be required to collateralized
his/her primary residence by utilizing a
2nd or 3rd mortgage.
• The SBA does not allow the Bank
to charge the borrower points on a 7A guaranteed
loan, unless it involves a construction
loan. The SBA charges a fee, which is based
on the size of the loan guarantee.
• The bank will charge a packaging
fee of $1,500 on all loans.
You can find additional information at
the SBA
Website
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