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Small Business Loans | SBA

Small Business Loans

If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.

To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.

SBA Application Checklist

SBA is not the only source for small-business loans. State and local economic-development agencies – and numerous nonprofit organizations – provide low-interest loans to small business owners who may not qualify for traditional commercial loans.

When it comes to applying for these loans, the good news is that most of these other lenders require the same kinds of information. Of course, each loan program has specific forms you need to fill out. But for the most part, you’ll need to submit the same types of documentation. So it’s a good idea to gather what you’ll need before you even start the application process.

Application Form

Forms vary by program and lending institution, but they all ask for the same information. You should be prepared to answer the following questions. It’s a good idea to have this information prepared before you fill out the application:

    • Why are you applying for this loan?
    • How will the loan proceeds be used?
    • What assets need to be purchased, and who are your suppliers?
    • What other business debt do you have, and who are your creditors?
    • Who are the members of your management team?
    • Personal Background

Either as part of the loan application or as a separate document, you will likely need to provide some personal background information, including previous addresses, names used, criminal record, educational background, etc.

The SBA Loan Application Checklist provides a listing of forms and documents you and your lender will need to create a loan package to submit to SBA.

10% Down Payment for Owner Occupied Property Industrial Bldg, Warehouse, Medical, Office

  • Amount: $5,000,000 max
  • Down Payment: 10%
  • Term: 25 years
  • Rate: Prime rate plus margin
  • DCR: 1.20
  • Pre-pay: 5-3-1
  • 51% Owner-Occupied
  • Some restrictions may apply
  • Rates & fees are subject to change
  • Appraisal and Phase I report required
  • Recourse
  • Personal guarantee
  • Three year financial

Type of business:

-Pharmacy
-Dry Cleaner
-Liquor Store
-Market
-Coin Laundry
-Manufacturer
-Medical Practice
-Subway
-Taco bell
-El Pollo loco
-Jack in the box
-Carl's Junior
-Arby's
-Pizza man
-ARCO
-Mobil 
-Chevron
-Union 76
-Texaco
-Valero
-Shell

One approval, one closing, one payment per month

SBA Program

•    Purchase land or buildings
•    Construct or renovate facilities
•    Provide working capital
•    Purchase machinery, equipment, fixtures
•    Purchase inventory

 Commercial Real Estate & SBA

SBAThe Small Business Administration was created in 1953 upon the passing of The Small Business Act of July 30th 1953. The SBA’s mission is to “aid, counsel, assist and protect small businesses”.

Small Business lending provides unique products that can be offered to existing and potential customers by mitigating the risk associated with providing longer term financing to small businesses.

By using SBA Complete outsourcing services, your lending institution can offer these products with peace of mind that the documentation and servicing is performed correctly.

If you already are have put together your own internal Small Business Loan department, it may make sense to have SBA Complete “on your team” for ongoing technical assistance or on the spot consulting services (training, review, improvement of efficiencies).


The SBA 7(a) Program is a guaranteed program, where the lending institution makes the loan, but SBA steps in with the payment of their guaranteed portion if the loan defaults. It is used to make term loans for most any type of financing needed by a for-profit operating business. For the fiscal year end 2011 the SBA approved 53,729 loans for 2,727 financial institutions. The gross loan approvals were $19.7 billion and the guaranteed amount was $15.4 billion.

SBA are available from commercial banks and lenders as part of a City Capital Realty program offered by the Small Business Administration. These Federal loans are very appealing to small business owners because they offer excellent terms. SBA for instance, generally require much smaller down payments than traditional real estate finance from commercial lenders.

Small Business Loan are usually used to finance commercial real estate property. SBA 7(A) program require a 10% down payment and offer lower interest rates than traditional conventional loans. In addition, you may be able to borrow up to five million dollars depending on a variety of different circumstances.

Small Business Loan popular among small business owners. The most common SBA are the 7(a) and the 504 loan packages; both deal with commercial real estate investments owner occupied businesses. One of the best ways to ensure you get financing from the SBA is to work with an experienced officer. City Capital Realty knows the ins and outs of the SBA program and is the best resource for ensuring you get the funds in a timely fashion.

Eligibility for Small Business Loan

•    An applicant business must operate for profit
•    A business loan applicant must have reasonable owner equity to invest
•    A business must be able to meet all its debt payments, not just its loan payments
•    A business must operate in the United States or its possession
•    Personal guarantees by all business owners (20% or greater) are required
•    Have net worth no greater than $15 million and net profit after taxes below $5 million in the last two operating years
•    Business owner(s) must have acceptable personal credit
•    Be organized as a sole proprietorship, corporation, partnership or limited-liability corporation (LLC)
•    Business must be owner-operated
•    A business must operate in the United States or its possessions

 

7(a) SBA program

SBAPurpose:

For purchase of Gas Station, Car Wash, Franchise Restaurant, Liquor Store, Dry Cleaner, Pharmacy, Medical Practice, Grocery Market, Coin Laundry.

Brand name gas station : ARCO , Chevron, Texaco, Mobil / Exxon, Union 76, Valero , Shell,

Collateral:

  • SBA business only (without property)
  • UCC filing: On all business and personal assets until loan is secured 100%
  • Size $200,000 to $5,000,000
  • Index: Wall street journal prime rate plus a margin
  • LTV: Up to 65% financing for qualifying transactions
  • DCR: Minimum 1.20
  • Recourse: Personal guarantee by all principals on SBA
  • Pre-payment: None
  • Occupancy Requirement: 100% must be owner occupied
  • Pre-approval:Will be determined upon receiving of appropriate documents:There year business and personal tax returns, including personal financial Statements, application, escrow instruction.

    All financing is subject to credit approval, other restriction may apply. Qualification requires owners to be U.S. citizens or permanent resident.

    A 7(a) guaranteed loan is actually a lender approved and funded loan by participant qualified lender, guaranteed by SBA, and subject to regulations, policies, procedures and eligibility requirements.
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