SBA Loans

Description of the SBA Loan Program

 

       SBA Guaranteed Loan Program - 7A

SOURCE: 
From Lending Institutions.. SBA Guaranteed

ELIGIBILITY: 
For-Profit Businesses (Some Exceptions)

RATE: 
Less Than 7 Years = 2.25%max + NY Prime Rate More than 7 Years = 2.75 max + NY Prime Rate Under $50,000 Loan, Lender May Charge an Extra Point

COLLATERAL: 
Personal Guarantee by Owners. Lien on Business or PersonalAssets if needed.

AMOUNT: 
SBA Guarantee = 85%-90% up to $500,000 Usual Minimum is $50,000

FEES
2% of Guaranteed Portion

OTHER: 
SBA Usually Requires owner to inject 1/3 to 1/2 Cash and/or Assets if a New Business

OTHER: 
Pamphlet "Business Loans From the SBA". Attend SCORE Seminars. See your SBA Authorized Banker for Specific Requirements