SBA Financing Loan Program
(Real Estate and Working Capital)
SBA 7a and SBA 504 Commercial Real Estate
Recourse:
All SBA loans are recourse
Property Types: Class A, B, C
Industrial
Office
Retail
Hospitality
Healthcare/Medical
Restaurants
Purpose:
Purchase, refinance, expansion, business acquisition
Lending Coverage:
Nationwide
Loan Size:
$150,000 to $5,000,000
Terms:
Hybrid and fixed on SBA 504
Fully amortized 25 years on SBA 7a
Rates:
Usually index + Margin
Index are usually Wall Street Prime Rate, Libor and Treasury Rates.
Margins are usually 0.50% to 3.00%
Variable rates on SBA 7a loans
Fixed rates on SBA 504
Loan to Value (maximum LTV):
90% LTV
85% LTV on special purpose properties
Loan prepayment:
5%, 3%, and 1% on SBA 7a
Step down or yield maintenance on SBA 504
Speed:
Average is 45 to 60 days
SBA 7a for Working Capital
Recourse:
All SBA loans are recourse
Purpose:
Business acquisition, tenant improvement, working capital and business expansion.
Lending Coverage:
Nationwide
Loan Size:
$150,000 to $5,000,000
Terms:
Up to 10 years fully amortized
Rates:
Variable rate at Wall Street Journal Prime Rate + 2.75% (max. margin)
Loan to Value (maximum LTV):
65% to 70% on business acquisition (non-real estate related)
Not applicable on working capital loans
Loan prepayment:
No prepayment for loans up to 10 year maturity
Speed:
Average is 45 to 60 days