We are a Correspondent for SBA Loans. 

Loans available for:

·         Business Acquisition

·         Real Estate Acquisition

·         Construction or Rehab

·         Refinance

·         Working Capital

Details:

·          $100,000 up to $2 million for SBA 7A

·          To $5M for SBA 504

·          Business must be able to cash flow the loan

·          Must have good credit to qualify

·          GROUND UP, START UP, AND REHAB OK

·          CURRENT RATE - Prime is 3.25% so the rate will be 5.5% - 6%

·          NO ORIGINATION FEE

Collateral Required

·   Frequently these loans are cross collateralized with primary residence

·   All business assets; personal assets as required. If equipment is being taken as collateral

·   Bank requires guarantees and full credit packages from all owners.

Please email us for complete details.

 If you have not checked out what the Small Business Administration (SBA) offers for a while, you may be amazed! The SBA received $730 million in the Recovery Act to help unlock the small business lending market and get much needed capital flowing again to America’s small businesses. These funds have gone to several programs of which small business owners can take advantage. If you are a small business owner with good credit and need funding/financing it would be wise to check out what the SBA has to offer as their programs are tough to beat!

SBA Loan Changes
On March 16, 2009, the standard SBA loan package was changed as follows: a temporary fee elimination for borrowers on its 7(a) loans for both borrowers and lenders on its 504 loans and a temporary increase in the guarantee rate on most of its 7(a) loans from 75% to 90%. The impact of this change is a huge savings in fees (tens of thousands of dollars) and the increased guarantee should make it easier to secure an SBA loan. This program will cover loans up to $2 million.

Surety Bond Guarantee
On March 27, 2009, the SBA more than doubled its maximum surety bond guarantee from $2 million to $5 million. This change provides small business with another tool to help them compete for federal construction and service contracts.

Eligibility Expansion
On May 1, 2009, the SBA put in place a temporary alternate size standard for its 7(a) loan program. The SBA claims that this change expands the availability of programs to an additional 70,000 small businesses.

America’s Recovery Capital (ARC) Loan
On June 15, 2009, The SBA introduced a new, temporary ARC loan program that is almost too good to be true. The ARC loan program provides loans up to $35,000 for existing debt; the loan is 100% guaranteed by the SBA; has no fees or interest (I repeat, “no interest for the life of the loan”); no payments for 12 months; and then five years to repay the principle. Did I mention it is at 0% interest? It is surprising that with an offer this good, that the SBA reports a slow uptake on applications for these loans. I would think there would be a waiting line! It sure makes it easier for those who do apply for it.

The Small Business Administration has been quite busy working for our small business community. If that alone is not enough good news, there is more on the way:

Dealer Floor Plan (DFP) Financing Pilot Program
Beginning July 1, 2009, the SBA will introduce the Dealer Floor Plan (DFP) Financing. This program offers government guaranteed loans to finance inventory for eligible auto, RV, boat (including boat trailer), motorcycle, manufactured home and other dealerships under a new pilot program that runs through September of 2010. When each piece of collateral is sold by the dealer, the loan advance against that piece of collateral is repaid and the dealer borrows against the line of credit to add new inventory. Here are some of the highlights:

• Size of the loan is $500,000 (minimum) up to $2,000,000 (maximum)
• Borrowers will receive a fee reduction as outlined in the recent changes to the standard 7(a) loan programs
• The maximum guarantee is 75% as opposed to the 90% in the standard program
• The maximum term for the DFP loan will be five years
• Loans will only be made for inventory that can be titled

In the coming weeks, SBA will announce expansion of some existing programs as well as the introduction of several others.

Who has received these loans? So far this year they have gone to rural (25%), minority-owned (21%), women-owned (19%), and veteran-owned (9%) businesses. The rest have gone to everyone else. Not everyone who applies is approved, but no one has been approved without applying. So I advise my clients to first create a well written business plan and then select a bank to which they want to apply.

If this is of interest to you but you aren’t sure what to do, I recommend you visit the SBA website for complete details on any of these programs and/or visit the SCORE website to request a counselor’s assistance free of charge. SCORE is primarily a nonprofit organization made up of volunteer retired executives from all industries.

If you would like to contact us, you can do so by emailing us.