SBA 7(a) loans are the most common type of SBA loan. Projects are secured by a 1st Deed of Trust/Mortgage on commercial real estate, meeting the SBA qualifications, having a maximum Loan to Value of 90%, depending on property type.
Maximum Loan Amount
Standard Project Structure
• 75% to 90% LTV
• 10% to 25% Equity Injection
• Multi-Purpose Real Estate – Up to 90% LTV
• Limited or Special Purpose Real Estate – Up to 80% LTV
Maturity and Amortization*
• Real Estate – Up to 25 years
• Business Acquisition – Up to 10 years
• Equipment Acquisition – Up to 10 years
• Debt Refinancing – 7 to 10 years
• Permanent Working Capital – Up to 7 years
*(Blended maturity and amortization will be applied depending on final structure as determined by SBA guidelines)
Eligible Property Types
• Office: Professional, Condominium, Medical, Dental, Veterinarian, and Mixed-Use.
• Industrial: Land Development, Heavy and Light Manufacturing, Warehouses & Flex/R&D
• Retail/Shopping Center: General
• Special Use: Assisted Living Facilities, Senior Housing, Funeral Homes, Day Care Facilities, Gas Stations, Restaurants, Hotels/Motels, Auto Care, Software Companies, Data Storage, Franchises and many more.
SBA 7(a) Eligible Use of Proceeds
• To purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities.
• To acquire equipment, machinery, furniture, fixtures, supplies, or materials.
• For long-term working capital, including the payment of accounts payable and or for the purchase of inventory.
• To refinance existing business debt not already structured with reasonable terms and conditions.
• For short-term working capital needs, including seasonal financing, export production, construction financing, and for financing against existing inventory and receivable under special conditions.
• To purchase an existing business.
Rate Option / Fees
Interest rates are generally adjustable a margin no greater than 1.75-2.50%. based loans, tied to the Wallstreet Journal Prime Index rate. We are able to leverage our banking relationships to your benefit so we can get help our clients get the best rates in the industry. Maturities up to 25 years are available based on use of loan proceeds.
The subject property must maintain a minimum of 51% occupancy (60% for new construction).
We provide Nationwide Lending in all industries