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Guaranteed Lending |
SBA 7(a) Program Most for-profit small businesses are eligible for a Small Business Administration (SBA) guaranteed loan. These include manufacturers, wholesalers, retailers, service businesses, business and medical professionals, as well as franchises. There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments. SBA 7(A) loans range in size from $250,000 to $2 million. Terms vary, depending upon use:
Proceeds can be used for a variety of purposes, iincluding:
Construction Loans. Funds can be used to cover both construction costs and certain soft costs associated with your project. They include land acquisition, building construction or improvements, professional fees, real estate appraisal, title work, searches, surveys, lender fees and SBA guarantee fees. SBA 504 Program The Small Business Association (“SBA”) 504 Program was designed as a long-term financing tool to assist the private sector in the financing of long-term assets such as real estate. This unique program offers growing businesses a long-term fixed rate loan coupled with a variable rate loan. Typically, the fixed rate portion will represent 40% of the total facility with a lender providing 50% and the 10% balance in the form of equity from the borrower. The SBA fixed rate portion of the facility has a maximum limit of $4 million (for small manufacturers) and terms can be up to 20 years. The rate is tied to an increment above the current U.S. Treasury rate for 5- and 10-year maturities. SBA 504 funds may have a variety of uses:
Examples of qualifying small businesses
Waypoint’s team of experienced professionals working with your local community Development Corporation (CDC) can provide you with an attractive solution to your long-term capital requirements. |
