The SBA 7(a) Loan can provide full solutions to your business financing needs.
Objectives
Proceeds can be used for a wide variety of business purposes, including the purchase of owner-occupied real estate, leasehold improvements, equipment, working capital, business acquisition, partner buyouts, and business startup expenses. It can also be used to refinance existing business debt that was used for any of these purposes. In many cases, different uses of proceeds can be accomplished all in one loan, which simplifies the loan process for the borrower and usually results in lower monthly payments than other financing products on the market.
Terms
Typical loan terms range from 10 – 25 years and are fully amortizing, so there are no balloon payments. Depending on the use of proceeds, financing may range from 70% to 100% of Total Project Cost. SBA 7(a) Loans have a maximum amount of $5 Million with no minimum amounts. Typically at FNB Small Business Finance, we consider loan requests from $350,000 up to $5,000,000. To be eligible for this type of loan, a business must be for-profit and fall within a size limit of having a tangible net worth of less than $15 Million and have had an average profit of less than $5 Million in the last two years.
The SBA requires that all available collateral be taken to support an SBA 7(a) loan, however, if the loan is not fully collateralized the SBA will still support the loan based on other underwriting requirements.
Pre-Application Checklist:
Documents to have available for a call with our team:
- Outline of proposed transaction including costs
- Three years tax returns on current and/or target business
- Interim Financial Statements on current and/or target business
- Personal Financial Statements on all current and/or potential owners over 20%
- Three years personal tax returns on all current and/or potential owners over 20%
