SBA's 7(a) Lending Program - The SBA 7(a) Program is a loan program provided by the U.S. Small Business Administration(SBA).
This program was designed to help small businesses that otherwise could not obtain a conventional bank loan.
The SBA's guarantee under the 7(a) program reduces the lenders' risk, with the SBA providing a guarantee for up to 75 percent of the loan amount for loans over $200,000.
Uses: May be used by a business for working capital, business startups, inventory, machinery and equipment purchases, real estate acquisition, construction, repair and renovation.
Interest rates: May be fixed or variable and typically range from 1 to 2.75 percentage points above the prime lending rate.
Maturities: vary with terms up to:
- 5 to 7 years for working capital
- 10 years for machinery and equipment
- 25 years for real estate.
Principle Commercial offers small business SBA 7(a) loans on a
variety of commercial property types.
Do you have questions about SBA 7(a) loans or eligiblity requirements?
Please
Contact Us and an Account Executive will be in touch with you shortly.
SBA's 504 (CDC) Lending Program - Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50% of the project cost,
a loan secured with a junior lien from the CDC (the SBA-guaranteed portion of the loan) covering up to 40% of the cost, and a contribution of at least 10% equity from the small business being helped.
Certified Development Company (CDC) Programs provide growing businesses with long-term fixed-rate financing for major fixed assets, such as land and buildings.
This particular program is administered through a regional Certified Development Company, which is a nonprofit corporation set up to contribute to the economic development of its community or region.
CDCs work with the SBA and private sector lenders to provide financing to small businesses.
Proceeds from 504 loans must be used for fixed asset projects such as:
- Purchasing land and improvements including: existing buildings, grading, street improvements, utilities, parking lots and landscaping
- Construction of new facilities
- Modernizing, renovating, or converting existing facilities
- Purchasing long-term machinery and equipment.
The maximum SBA loan amount under the 504 program is generally $1,000,000 (up to $2 million in some cases).
Principle Commercial offers small business SBA 504 loans on a
variety of commercial property types.
Do you have questions about SBA 504 loans or eligiblity requirements?
Please
Contact Us and an Account Executive will be in touch with you shortly.