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SBA COMMERCIAL LOANS
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Applying for and acquiring a SBA loan for your commercial property shouldn't be a complex process. At CL&I, we specialize in helping you get you SBA loan quickly and painlessly. CL&I has experience in funding a variety of SBA commercial property loan types and often requires a minimum of $500,000 to be considered. As long as you are intending to occupy a majority of the commercial property you are applying for, an SBA loan may be your best option.
How does a SBA loan work? As a United State's government agency, the Small Business Administration makes it a focus to help business owners such as yourself grow and succeed in order to boost the economy and well-being of your local economy.
If you own a small business, have fewer than 500 employees, and tend to occupy the commercial building you are seeking a commercial loan for, an SBA loan is a great way to get commercial financing at a lower interest rate and for longer terms, if needs.
SBA loan rates and terms help businesses grow without the added financial strain of more expensive loan terms, yet give you the loan flexibility you would typically search for in typical commercial loans.
CL&I uses this lending program on many loans. SBA loans are perfect for many borrowers and their situations. SBA loans are only for commercial real estate properties where the borrower will owner-occupy at least 51% of square footage of the building.
There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments
SBA loans can be used for property acquisitions, expansions, or rate & term refinances. Typically, SBA rates are adjustable and tied to the Prime rate. The maximum LTV on an SBA loan is 90% with a 10% down payment. However, some property types or loan sizes will not qualify for 90% LTV, in which case the borrower may need a 20-30% down payment. One of the major strengths of an SBA loan is that we can use the borrowers future income projections when we underwrite the loan. This allows a borrower to buy a property that has a weaker historical income and turn it around. Commercial loans take 30-90 days. However, in some hard money circumstances a loan can close in less than 30 days.
CL&I is a nationally recognized company helping entrepreneurs achieve their business goals. We have been designated as a Preferred Broker company by SBA lenders to have loans processed more quickly and efficiently than many others.
Who is Eligible for an SBA Loan?
Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses.
Loan Qualifications
Retail and service businesses with sales (3-year average) not exceeding $6
million to $20 million, depending on the industry
Wholesale businesses with employees up to 100 regardless of sales volume
Manufacturers with employees up to 500 depending on the industry, regardless
of sales volume
SBA 7(A) Loan Size $150,000 to $2.0 million
Loan Fees
Loan packaging fee: $750 to $2,000
Fee is based on loan size, it is collected at the time of loan submission;
refunded if declined by credit
SBA guaranty fee: 1.70% to 2.60% of the loan amount
Fee can be financed in the loan
Use of Proceeds
Commercial real estate (purchases, construction, or refinance)
Leasehold improvements
Business expansions
Machinery, equipment, furniture or fixtures
Business acquisition
Working capital (offered in conjunction with some of the above)
Start-ups (ALL Franchises, Motels, Restaurants Gas Stations and C-Stores)
SBA EXPRESS LOANS
Typical Use of Proceeds
usually used for financing short term assets or working capital needs
Loan Amounts
Loans up to $350,000
Rate Structure
Rates adjust quarterly, indexed off the Wall Street Journal Prime rate.
Typical Loan Amortization
Up to 7 years, fully amortized.
SBA 504 Loan Program
Loan Purpose: Real estate and fixed asset purchase including business acquisition, business expansion, construction, partner buyout, start-ups, turn-around, and machinery and equipment.
Program is available nationwide to a variety of industries.
The SBA 504 program is an excellent long term finance option specially designed for the purchase of long term assets such as owner-user commercial real estate or heavy machinery and equipment.
Other Credits Considerations
Business must have adequate historic cash flow to cover the proposed debt
Business debt to net worth must meet industry averages
Borrowers must be actively involved in the day-to-day operation of the business
Satisfactory personal credit histories are required for all principles and guarantors
No past bankruptcies or felony arrests
Contact us today about our SBA Loan Programs and other services.
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