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SBA Loan Programs and Information, HCDC Lending, sba loan.#Sba #loan


sba loan

Sba loan

Pogo Play

$1,230,000 Project Cost

$447,000 HCDC Debenture

Third-Party Lending Partner: Fifth Third Bank

Sba loan

The Roehr Agency

$1,787,018 Project Cost

$737,000 HCDC Debenture

Third-Party Lending Partner: CBank

Sba loan

Sunrise Treatment Center

$790,000 Project Cost

$328,000 HCDC Debenture

Third-Party Lending Partner: Huntington National Bank

SBA 504 Loans

Sba loan

Skyline Fairfield

$1,450,250 Project Cost

$602,000 HCDC Debenture

Third-Party Lending Partner: MainSource (Now First Financial) Bank

Sba loan

Dubwerx

$1,245,897 Project Cost

$518,000 HCDC Debenture

Third-Party Lending Partner: Republic Bank

Sba loan

Houdini’s Room Escape

$811,000 Project Cost

$297,000 HCDC Debenture

Third-Party Lending Partner: Spring Valley Bank

A Powerful Financing Tool

The U.S. Small Business Administration (SBA) 504 loan program provides small and medium-size businesses with long-term, low, fixed-rate financing for owner-occupied commercial real estate and heavy machinery projects. The inspiration behind the SBA 504 loan is to promote business investment and job creation by providing access to low down payment financing, so that small businesses can preserve cash to operate their business.

How does the SBA 504 Loan work?

The SBA 504 loan packages two loans together, one from HCDC and one from a private lending partner, such as a commercial bank or credit union. The structure of the loan is typically 50/40/10.

The lending partner makes a commercial loan typically 50% of the total project costs and holds a first mortgage.

HCDC provides a subordinated, fixed-interest rate, long-term loan for up to 40% of project cost up to $5 million ($5.5 million in special cases).

The borrower typically provides an equity injection of as little as 10% of the project cost.

Immediate and Long-Term Benefits for Small Businesses:

  • Borrower often needs only 10% down leaving more cash to run your business.
  • Low fixed-rate financing for the 504 portion of the loan- you don t have to worry about the prime lending rate going up for the 504 portion of the loan.
  • Long-term financing for 10 and 20 years- longer loan terms makes the monthly payments lower.
  • Minimize collateral risk with a first lien position and typically a 50% loan-to-value ratio.
  • Smaller banks can work on larger projects while bigger banks can limit exposure to certain industries.
  • Assist more customers by leveraging lending capacity across more borrowers.
  • Leverage the guarantee by the SBA to help customer who otherwise would not meet lending standards.
  • HCDC’s SBA Loan Experts will handle all the application paperwork, processing and review required by the SBA.
  • Provides Community Reinvestment Act credit.

Who Is Eligible for the 504 Loan Program?

  • For-profit corporations, partnerships and proprietorships.
  • Businesses whose net worth does not exceed $15,000,000.
  • Net profits must average less than $5,000,000 during the previous two years.

What Is Eligible for the 504 Loan Program?

  • Financing for land acquisition.
  • Financing for building acquisition or construction.
  • Financing for renovation or expansion.
  • Financing for machinery and equipment with a useful life of 10 years or more.
  • “Soft” costs for appraisals, general surveying, architectural work and installation.

Applicants Involved in the Following are Ineligible:

  • Speculative lending or investments.
  • Non-profit institutions.
  • Rental property held primarily for sale or investment.
  • Businesses appealing to sexual nature or prurient interests.

SBA Loan Rates – Current Interest Rates and How They Work, sba loan.#Sba #loan


Sba loan

Sba loan

SBA Loan Rates Current Interest Rates and How They Work

There are three primary types of SBA loans: SBA 7A Loans, SBA Express Loans, and CDC/504 Loans. SBA 7A loans and SBA Express loans can be used for a wide variety of purposes, including growth capital and refinancing. CDC/504 loans, on the other hand, are specifically for the purchase of fixed assets like real estate and heavy machinery.

November 2017 Maximum interest rates on SBA 7A Loans range from 6.5 % to 9 %. Full Table

November 2017 Maximum interest rates for the CDC portion of CDC/504 Loans currently range from 4.08% to 4.43% including fees. Full Table

Before reading further, make sure you are qualified. Though there are exceptions, and startups are sometimes eligible, there are five general requirements for getting an SBA loan:

  • In business at least 2 years
  • Personal credit score is 680+ (check your score for free here)
  • Seeking at least $30,000
  • At least $50,000 in revenues for the past 12 months
  • Business is profitable

Sound like you? We recommend applying with SmartBiz. They are the best company we have found at providing quick turnarounds on SBA loan approvals, and you can find out how much you qualify for in 5 minutes.

Current SBA (7A) Loan Interest Rates and Explanation

The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 6.5% 9%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on SBA 7A loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

Maximum Interest Rates on SBA 7A Loans for November 2017

Detailed SBA 7(a) Interest Rate Explanation* Please note SBA 7A Express loans carry a higher interest rate for similar size amounts and terms than the standard 7A loans above. We recommend avoiding SBA Express loans as firms like SmartBiz can provide approval for the standard 7A with similar turnaround times.

As the table above shows, the maximum interest rate on SBA 7(a) loans is based on three factors:

  1. A base rate (one of the following publicly available interest rate measures): Prime Rate, LIBOR (one month) + 3.0%, or SBA Peg Rate
  2. The term of the loan: Less than 7 years or greater than 7 years. For example, 3 and 5 year loans would all fall into the same category of under 7 years.
  3. The size of the loan: Under $25,000, $25,000 to $49,999, and over $50,000. For example, loans of $30,000 and $45,000 will fall under the same category.

As the table shows, loans longer than 7 years have a maximum interest rate which is half a percent higher than similar size loans that are for terms that are less than 7 years.

Loans for more than $50,000 have 1% lower maximum interest rates than loans between $25,000 and $49,999 when taken for similar terms. Similarly, loans for $25,000 to $49,999 have 1% lower maximum interest rates than loans for less than $25,000.

Fixed vs. Variable SBA Interest Rates

7A loans can have a fixed or variable interest rate. With a fixed rate loan, the loan interest rate remains constant throughout the life of the loan. With a variable rate loan, the loan’s interest rate can change (often referred to as a reset) at regular intervals, such as quarterly or monthly.

With variable rate SBA 7A loans, the rate is reset based on one of three publicly available market interest rate numbers, plus a fixed percentage. The interest rate must always be at or below the maximum interest rate set by the SBA. For smaller size SBA loans (for example those under $500,000), banks tend to offer only variable rate loans, with interest rates at or close to the maximum allowable by the SBA.

The Base Rate And Interest Rate Resets

Banks can choose one of three market interest rate measures as their base rate. These are the prime rate, LIBOR + 3.0%, or the SBA peg rate. While there are small differences between these rates, they tend to track each other very closely. The Prime Rate is the one that s most commonly used.

Rates as of November 1, 2017:

  • Prime Rate: 4.25% (source: WSJ)
  • LIBOR (one month) + 3.0%: 4.24% (source: Bankrate)
  • SBA PEG Rate: 2.625% (source: National Association of Government Guaranteed Lenders)

These rates can go up or down based on market conditions. Currently, they are at decade low levels. Over the last 10 years, the Prime Rate has been as high as 8.3%.

With a variable rate SBA 7A Loan, as market interest rates rise so will the rate on the loan. Let’s take the example of a 10-year loan for $50,000 with interest rates rising by 2%.

The maximum interest rate on the loan currently would be 7.75%, with a monthly payment of $600 per month. With a 2% rise in interest rates upon the interest rate reset, the rate would be 9.75%, with a monthly payment of $654 (this would be the monthly increase for a newly issued loan. If the loan was older, the increase in monthly payment would be lower).

Interest Rates Are Not The Only Costs To Borrowing Money: APR/APY

When taking a loan, there is often an origination fee. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs. However, the origination fee is not directly based on costs and is arbitrarily set by the financial institution. An origination fee of 4% is not unusual. The fee is typically taken “off the top”. For example, a borrower taking a $50,000 SBA loan with a 4% origination fee would only receive $48,000.

SBA 7(a) loans also have a guarantee fee. Initially, the lender pays this fee to the SBA, but it s almost always passed on to the borrower at closing. Currently, the SBA has waived fees for loans under $150,000. Above that, the fee typically ranges from 3 % to 3.5 % of the guaranteed portion of the loan. The exact percentage depends on the size of the loan and the length of the loan. For example, if a borrower takes a $250,000 10-year 7a loan, the SBA may guarantee 75 % of that, or $187,500. 3 percent of that amount, or $5,625, is the guarantee fee that will be charged to the borrower. For more info, click here.

The true cost of borrowing money (interest rate + fees) is often called the APY (Annual Percentage Yield) or APR (Annual Percentage Rate). On a ten year SBA loan, the effect of fees can create an APR or APY that is around 1% higher than the loan’s interest rate. The shorter the loan the bigger the impact that fees will have on the APY/APR.

What size SBA loan could you qualify for? Apply with SmartBiz and get an estimate in minutes.

November 2017 SBA Loan Rates On Real CDC / 504 Loans

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 3.83% to 4.56%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on CDC/504 loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

While a 7A SBA Loan can be used to purchase real estate, a Real CDC / 504 Loan will tend to provide borrowers with tremendous interest rate savings. A CDC / 504 loan is composed of two loans:

  1. A loan from a financial institution (bank) for typically 50% of the price of the property, equipment, and building upgrades.
  2. A loan from a Certified Development Company (a non-profit) for 40% of the price.

The remaining 10 % is a down payment from the borrower. The interest rates on the bank portion of the loan are not set by the SBA. However, the interest rates on these loans tend to be very low, currently in the mid-single digits. Because the bank loan is senior to the CDC loan and the loan is backed by real-estate, there is a low risk that the bank will not be able to get back the money it loans. The low-risk is reflected in the low-interest rates.

The maximum interest rate on the CDC portion of the loan is set by the SBA.

If you re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan. We recommend working with Liberty SBF for SBA 504 loans. If you have credit score is above 680 (check here for free), you ve been in business 4+ years, are profitable, and need more than $1,000,000, speak with Liberty SBF today.

If you need a commercial real estate loan of $500,000 $5,000,000, another option is a 7(a) loan with a 25-year repayment term. If you have a credit score above 680 (check here for free), you ve been in business 3+ years, are profitable, and will occupy at least 51% of the space, get prequalified in minutes with SmartBiz.


SBA Default and Disaster Loans, Small Business Community, sba loans.#Sba #loans


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2 ОтветыПоследний ответ: 26.12.2011 18:23, автор: JasonTees.com

Sba loans Sba loans

Every time my phone rings, I take a quick glance at my caller ID to see what state the call is coming from. I am almost always excited to find out about the callers situation, and how I might be able to help. But there is one exception: when the call comes from Louisiana. Do I dislike the state of Louisina? No, of course not. But I do tend to sigh when I get a call from the Big Easy, and the reason is simple: many SBA disaster loans were issued after Hurricane Katrina to Louisiana residence.

In a nutshell, SBA disaster loans are really, really, really, really, really difficult to settle. And this is why I don t like getting calls from Louisiana. I get 2 to 3 calls per week from someone with a disaster loan who is struggling to pay them, and in most cases I turn those people away. Believe me, I d love to help, but disaster loans tend to not to be conducive to settlements for a few reasons:

  1. Disaster Loans Are Almost Always Secured With Homes. In cases where your home has equity in it that is sufficient to cover your debt, there is no chance that the SBA will settle the debt. The logic is simple: if they can foreclose on you and get all their money back, there is no reason to settle.
  2. Disaster Loan Terms are Generous To Begin With. Most SBA disaster loans are offer very low interest rates over a long period of time (usually 30 years), so when things go wrong, there is not much that can be done to help. If your payment is $150 per month, and you are struggling to make that payment, it s likely that payment at any level would be onerous.
  3. Disaster Loans Are Typically Issued To Individuals. As a result of going to people who had scarce resources to begin with, asking a person to raise a material sum of cash to settle a disaster loan is always a tall order. If you owe $30,000 and can t afford a $300 per month payment, it s likely that you don t have access to enough cash to make a lump sum settlement offer. In other words, since most disaster loan borrowers have limited financial resources, the chances of raising enough of lump sum to settle are limited as well.
  4. The Powers That Be Are Arbitrary. More than any other area of the SBA, I ve found that the SBA Disaster Loan folks rely less on the facts and more on arbitrary thresholds. Unlike the SBA business loan settlements, which heavily consider a person s financial situation, the Disaster Loan people basically say we don t care that you can only afford $1,000, we want you to pay $10,000 . For this reason alone, many disaster loans never have a chance to settle.

SBA Financing – Ameris Bank, sba loan requirements.#Sba #loan #requirements


SBA Financing

Over half a century ago, Congress created the Small Business Administration (SBA) to offer small businesses financing options and funding to start and grow their company. Ameris Bank has a team of SBA lenders with many years of experience, ready to provide financing options to qualifying businesses. Our small business financing options provide flexible terms to improve repayment ability and preserve working capital.

  • SBA Preferred Lender
  • Terms as long as 25 years
  • Fast loan processing, competitive loan rates, and one-on-one service
  • As low as 10% equity requirements
  • Small business financing options include: real estate loans, franchise lending, business acquisitions, equipment loans and working capital and inventory loans

Popular SBA Lending Solutions

Sba loan requirements

Financing Options

Ameris Bank SBA Financing offers an array of products designed for the needs of small businesses of all sizes, across numerous industries. Learn More

Sba loan requirements

Frequently Asked Questions

When researching SBA financing options, you may have questions. We’ve compiled a list of answers to frequently asked questions for quick reference. Learn More

Sba loan requirements

Apply Now

You can expedite the application process by completing our SBA online form. Once submitted, a member of our SBA team will contact you directly. Learn More

Tools Resources

Sba loan requirements

Calculators

Sba loan requirements

Starting a Business

Sba loan requirements

Fraud Prevention

Sba loan requirements

Growing a Business

Sba loan requirements

Cybersecurity

Sba loan requirements

ID Theft Fraud Prevention

Sba loan requirements

Funding a Business

Sba loan requirements


What Is A 504 Loan? National Association of Development Companies (NADCO), sba loan requirements.#Sba #loan #requirements


sba loan requirements

Sba loan requirements

OWN YOUR BUSINESS, OWN YOUR LIFE

Sba loan requirements

VALUE

Sba loan requirements

LOW DOWN PAYMENT

Sba loan requirements

GOVERNMENT BACKED

Sba loan requirements

LOW FEES

Sba loan requirements

LONG TERM FINANCING

Sba loan requirements

COMPETITIVE INTEREST RATES

Sba loan requirements

FIXED RATE

Sba loan requirements

FLEXIBILITY

Sba loan requirements

ELIGIBILITY

For a more in-depth Top 10 List that compares the SBA 504 loan to the 7(a), please view For Lenders: Top Ten Reasons to Use the 504.

Loan Structure

Sba loan requirements

Am I Eligible?

Eligible Uses

  • Acquisition of vacant land
  • Building construction
  • Acquisition of existing buildings
  • Major renovations and/or additions to exisiting building
  • Marine facility acquisition, including fishing vessels and commercial boats
  • Purchases of capital equipment, including heavy machinery
  • Associated costs such as title and insurance, legal fees, appraisals, environmental reports, architects fees, surveys, equipment installation, points on bridge loans, furniture and fixtures, etc.

Sba loan requirements

Above Photo – Jenny’s Floral in Custer, SD. SBA 504 loan provided by Black Hills Community Econ. Development, Inc., Rapid City, SD

Note Loan funds may not be used for working capital, mortgage broker fees, bridge loans during the construction period, business inventory, rolling stock (i.e. trucks) or refinancing of existing debt of the business.

Eligible Companies

Companies consistent with the following criteria are eligible:

  • Franchise businesses are eligible and, if listed in the franchise industry, may qualify for expedited loan approval
  • Legal entity – corporation, partnership, sole proprietor, limited liability company
  • Located in the United States
  • Net worth under $15 million and net profits under $5 million
  • Participation by another lender who finances up to 50 percent of project costs
  • Economic development goals must be achieved through the project financing
  • Owner-user of the project being financed must occupy at least 51 percent of the property for an existing building or 60 percent of a newly constructed building. Two or more unrelated small businesses can receive an SBA 504 loan if they combine to meet occupancy requirements.

Companies consistent with the following criteria are NOT eligible:

  • A not-for-profit (exception for sheltered workshops)
  • Engaged in lending; a passive holder of real estate and/or personal property; a life insurance company – however an insurance agency is eligible)
  • Located in a foreign country or owned by aliens who do not have legal permanent resident status
  • Has restriction on patronage
  • Is a government-owned entity (exception for Native American tribes)
  • Engaged in promoting religion
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Engaged in loan packaging
  • Owned by persons of poor character
  • Equity interest by lender, CDC or associates in applicant concern
  • Provides prurient sexual material
  • Has previously defaulted on a federal loan
  • Engaged in political or lobbying activities
  • Speculative businesses

Eligible Projects

Most growing businesses are adding staff as they expand and look for larger facilities.

There is no limit to the total project cost, however, a CDC can lend you up to 40 percent of the project cost with a dollar cap of $5,000,000 depending on the type of project.

CDCs can exceed $5,000,000 and go as high as $5,500,000 of 504 financing for eligible manufacturing projects and for projects that incorporate energy saving technologies for sustainable design.

Manufacturing & Energy Efficient Projects

  • Eligible manufacturing projects
  • Projects Incorporating energy saving technologies for sustainable design
  • Projects that generate renewable energy like solar, wind or geothermal
  • Small businesses wishing to purchase, construct or retro-fit facilities incorporating energy saving technologies that result in a 10 percent decrease in energy consumption.

Want More Information?

For more information, view a PDF presentation on the SBA 504 loan by right clicking the following image and downloading the file:

Sba loan requirements


SBA Loan Rates – Current Interest Rates and How They Work, sba loan requirements.#Sba #loan #requirements


Sba loan requirements

Sba loan requirements

SBA Loan Rates Current Interest Rates and How They Work

There are three primary types of SBA loans: SBA 7A Loans, SBA Express Loans, and CDC/504 Loans. SBA 7A loans and SBA Express loans can be used for a wide variety of purposes, including growth capital and refinancing. CDC/504 loans, on the other hand, are specifically for the purchase of fixed assets like real estate and heavy machinery.

November 2017 Maximum interest rates on SBA 7A Loans range from 6.5 % to 9 %. Full Table

November 2017 Maximum interest rates for the CDC portion of CDC/504 Loans currently range from 4.08% to 4.43% including fees. Full Table

Before reading further, make sure you are qualified. Though there are exceptions, and startups are sometimes eligible, there are five general requirements for getting an SBA loan:

  • In business at least 2 years
  • Personal credit score is 680+ (check your score for free here)
  • Seeking at least $30,000
  • At least $50,000 in revenues for the past 12 months
  • Business is profitable

Sound like you? We recommend applying with SmartBiz. They are the best company we have found at providing quick turnarounds on SBA loan approvals, and you can find out how much you qualify for in 5 minutes.

Current SBA (7A) Loan Interest Rates and Explanation

The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 6.5% 9%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on SBA 7A loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

Maximum Interest Rates on SBA 7A Loans for November 2017

Detailed SBA 7(a) Interest Rate Explanation* Please note SBA 7A Express loans carry a higher interest rate for similar size amounts and terms than the standard 7A loans above. We recommend avoiding SBA Express loans as firms like SmartBiz can provide approval for the standard 7A with similar turnaround times.

As the table above shows, the maximum interest rate on SBA 7(a) loans is based on three factors:

  1. A base rate (one of the following publicly available interest rate measures): Prime Rate, LIBOR (one month) + 3.0%, or SBA Peg Rate
  2. The term of the loan: Less than 7 years or greater than 7 years. For example, 3 and 5 year loans would all fall into the same category of under 7 years.
  3. The size of the loan: Under $25,000, $25,000 to $49,999, and over $50,000. For example, loans of $30,000 and $45,000 will fall under the same category.

As the table shows, loans longer than 7 years have a maximum interest rate which is half a percent higher than similar size loans that are for terms that are less than 7 years.

Loans for more than $50,000 have 1% lower maximum interest rates than loans between $25,000 and $49,999 when taken for similar terms. Similarly, loans for $25,000 to $49,999 have 1% lower maximum interest rates than loans for less than $25,000.

Fixed vs. Variable SBA Interest Rates

7A loans can have a fixed or variable interest rate. With a fixed rate loan, the loan interest rate remains constant throughout the life of the loan. With a variable rate loan, the loan’s interest rate can change (often referred to as a reset) at regular intervals, such as quarterly or monthly.

With variable rate SBA 7A loans, the rate is reset based on one of three publicly available market interest rate numbers, plus a fixed percentage. The interest rate must always be at or below the maximum interest rate set by the SBA. For smaller size SBA loans (for example those under $500,000), banks tend to offer only variable rate loans, with interest rates at or close to the maximum allowable by the SBA.

The Base Rate And Interest Rate Resets

Banks can choose one of three market interest rate measures as their base rate. These are the prime rate, LIBOR + 3.0%, or the SBA peg rate. While there are small differences between these rates, they tend to track each other very closely. The Prime Rate is the one that s most commonly used.

Rates as of November 1, 2017:

  • Prime Rate: 4.25% (source: WSJ)
  • LIBOR (one month) + 3.0%: 4.24% (source: Bankrate)
  • SBA PEG Rate: 2.625% (source: National Association of Government Guaranteed Lenders)

These rates can go up or down based on market conditions. Currently, they are at decade low levels. Over the last 10 years, the Prime Rate has been as high as 8.3%.

With a variable rate SBA 7A Loan, as market interest rates rise so will the rate on the loan. Let’s take the example of a 10-year loan for $50,000 with interest rates rising by 2%.

The maximum interest rate on the loan currently would be 7.75%, with a monthly payment of $600 per month. With a 2% rise in interest rates upon the interest rate reset, the rate would be 9.75%, with a monthly payment of $654 (this would be the monthly increase for a newly issued loan. If the loan was older, the increase in monthly payment would be lower).

Interest Rates Are Not The Only Costs To Borrowing Money: APR/APY

When taking a loan, there is often an origination fee. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs. However, the origination fee is not directly based on costs and is arbitrarily set by the financial institution. An origination fee of 4% is not unusual. The fee is typically taken “off the top”. For example, a borrower taking a $50,000 SBA loan with a 4% origination fee would only receive $48,000.

SBA 7(a) loans also have a guarantee fee. Initially, the lender pays this fee to the SBA, but it s almost always passed on to the borrower at closing. Currently, the SBA has waived fees for loans under $150,000. Above that, the fee typically ranges from 3 % to 3.5 % of the guaranteed portion of the loan. The exact percentage depends on the size of the loan and the length of the loan. For example, if a borrower takes a $250,000 10-year 7a loan, the SBA may guarantee 75 % of that, or $187,500. 3 percent of that amount, or $5,625, is the guarantee fee that will be charged to the borrower. For more info, click here.

The true cost of borrowing money (interest rate + fees) is often called the APY (Annual Percentage Yield) or APR (Annual Percentage Rate). On a ten year SBA loan, the effect of fees can create an APR or APY that is around 1% higher than the loan’s interest rate. The shorter the loan the bigger the impact that fees will have on the APY/APR.

What size SBA loan could you qualify for? Apply with SmartBiz and get an estimate in minutes.

November 2017 SBA Loan Rates On Real CDC / 504 Loans

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 3.83% to 4.56%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on CDC/504 loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

While a 7A SBA Loan can be used to purchase real estate, a Real CDC / 504 Loan will tend to provide borrowers with tremendous interest rate savings. A CDC / 504 loan is composed of two loans:

  1. A loan from a financial institution (bank) for typically 50% of the price of the property, equipment, and building upgrades.
  2. A loan from a Certified Development Company (a non-profit) for 40% of the price.

The remaining 10 % is a down payment from the borrower. The interest rates on the bank portion of the loan are not set by the SBA. However, the interest rates on these loans tend to be very low, currently in the mid-single digits. Because the bank loan is senior to the CDC loan and the loan is backed by real-estate, there is a low risk that the bank will not be able to get back the money it loans. The low-risk is reflected in the low-interest rates.

The maximum interest rate on the CDC portion of the loan is set by the SBA.

If you re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan. We recommend working with Liberty SBF for SBA 504 loans. If you have credit score is above 680 (check here for free), you ve been in business 4+ years, are profitable, and need more than $1,000,000, speak with Liberty SBF today.

If you need a commercial real estate loan of $500,000 $5,000,000, another option is a 7(a) loan with a 25-year repayment term. If you have a credit score above 680 (check here for free), you ve been in business 3+ years, are profitable, and will occupy at least 51% of the space, get prequalified in minutes with SmartBiz.


SBA Loan Rates – Current Interest Rates and How They Work, sba loan rates.#Sba #loan #rates


Sba loan rates

Sba loan rates

SBA Loan Rates Current Interest Rates and How They Work

There are three primary types of SBA loans: SBA 7A Loans, SBA Express Loans, and CDC/504 Loans. SBA 7A loans and SBA Express loans can be used for a wide variety of purposes, including growth capital and refinancing. CDC/504 loans, on the other hand, are specifically for the purchase of fixed assets like real estate and heavy machinery.

November 2017 Maximum interest rates on SBA 7A Loans range from 6.5 % to 9 %. Full Table

November 2017 Maximum interest rates for the CDC portion of CDC/504 Loans currently range from 4.08% to 4.43% including fees. Full Table

Before reading further, make sure you are qualified. Though there are exceptions, and startups are sometimes eligible, there are five general requirements for getting an SBA loan:

  • In business at least 2 years
  • Personal credit score is 680+ (check your score for free here)
  • Seeking at least $30,000
  • At least $50,000 in revenues for the past 12 months
  • Business is profitable

Sound like you? We recommend applying with SmartBiz. They are the best company we have found at providing quick turnarounds on SBA loan approvals, and you can find out how much you qualify for in 5 minutes.

Current SBA (7A) Loan Interest Rates and Explanation

The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 6.5% 9%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on SBA 7A loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

Maximum Interest Rates on SBA 7A Loans for November 2017

Detailed SBA 7(a) Interest Rate Explanation* Please note SBA 7A Express loans carry a higher interest rate for similar size amounts and terms than the standard 7A loans above. We recommend avoiding SBA Express loans as firms like SmartBiz can provide approval for the standard 7A with similar turnaround times.

As the table above shows, the maximum interest rate on SBA 7(a) loans is based on three factors:

  1. A base rate (one of the following publicly available interest rate measures): Prime Rate, LIBOR (one month) + 3.0%, or SBA Peg Rate
  2. The term of the loan: Less than 7 years or greater than 7 years. For example, 3 and 5 year loans would all fall into the same category of under 7 years.
  3. The size of the loan: Under $25,000, $25,000 to $49,999, and over $50,000. For example, loans of $30,000 and $45,000 will fall under the same category.

As the table shows, loans longer than 7 years have a maximum interest rate which is half a percent higher than similar size loans that are for terms that are less than 7 years.

Loans for more than $50,000 have 1% lower maximum interest rates than loans between $25,000 and $49,999 when taken for similar terms. Similarly, loans for $25,000 to $49,999 have 1% lower maximum interest rates than loans for less than $25,000.

Fixed vs. Variable SBA Interest Rates

7A loans can have a fixed or variable interest rate. With a fixed rate loan, the loan interest rate remains constant throughout the life of the loan. With a variable rate loan, the loan’s interest rate can change (often referred to as a reset) at regular intervals, such as quarterly or monthly.

With variable rate SBA 7A loans, the rate is reset based on one of three publicly available market interest rate numbers, plus a fixed percentage. The interest rate must always be at or below the maximum interest rate set by the SBA. For smaller size SBA loans (for example those under $500,000), banks tend to offer only variable rate loans, with interest rates at or close to the maximum allowable by the SBA.

The Base Rate And Interest Rate Resets

Banks can choose one of three market interest rate measures as their base rate. These are the prime rate, LIBOR + 3.0%, or the SBA peg rate. While there are small differences between these rates, they tend to track each other very closely. The Prime Rate is the one that s most commonly used.

Rates as of November 1, 2017:

  • Prime Rate: 4.25% (source: WSJ)
  • LIBOR (one month) + 3.0%: 4.24% (source: Bankrate)
  • SBA PEG Rate: 2.625% (source: National Association of Government Guaranteed Lenders)

These rates can go up or down based on market conditions. Currently, they are at decade low levels. Over the last 10 years, the Prime Rate has been as high as 8.3%.

With a variable rate SBA 7A Loan, as market interest rates rise so will the rate on the loan. Let’s take the example of a 10-year loan for $50,000 with interest rates rising by 2%.

The maximum interest rate on the loan currently would be 7.75%, with a monthly payment of $600 per month. With a 2% rise in interest rates upon the interest rate reset, the rate would be 9.75%, with a monthly payment of $654 (this would be the monthly increase for a newly issued loan. If the loan was older, the increase in monthly payment would be lower).

Interest Rates Are Not The Only Costs To Borrowing Money: APR/APY

When taking a loan, there is often an origination fee. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs. However, the origination fee is not directly based on costs and is arbitrarily set by the financial institution. An origination fee of 4% is not unusual. The fee is typically taken “off the top”. For example, a borrower taking a $50,000 SBA loan with a 4% origination fee would only receive $48,000.

SBA 7(a) loans also have a guarantee fee. Initially, the lender pays this fee to the SBA, but it s almost always passed on to the borrower at closing. Currently, the SBA has waived fees for loans under $150,000. Above that, the fee typically ranges from 3 % to 3.5 % of the guaranteed portion of the loan. The exact percentage depends on the size of the loan and the length of the loan. For example, if a borrower takes a $250,000 10-year 7a loan, the SBA may guarantee 75 % of that, or $187,500. 3 percent of that amount, or $5,625, is the guarantee fee that will be charged to the borrower. For more info, click here.

The true cost of borrowing money (interest rate + fees) is often called the APY (Annual Percentage Yield) or APR (Annual Percentage Rate). On a ten year SBA loan, the effect of fees can create an APR or APY that is around 1% higher than the loan’s interest rate. The shorter the loan the bigger the impact that fees will have on the APY/APR.

What size SBA loan could you qualify for? Apply with SmartBiz and get an estimate in minutes.

November 2017 SBA Loan Rates On Real CDC / 504 Loans

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 3.83% to 4.56%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on CDC/504 loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

While a 7A SBA Loan can be used to purchase real estate, a Real CDC / 504 Loan will tend to provide borrowers with tremendous interest rate savings. A CDC / 504 loan is composed of two loans:

  1. A loan from a financial institution (bank) for typically 50% of the price of the property, equipment, and building upgrades.
  2. A loan from a Certified Development Company (a non-profit) for 40% of the price.

The remaining 10 % is a down payment from the borrower. The interest rates on the bank portion of the loan are not set by the SBA. However, the interest rates on these loans tend to be very low, currently in the mid-single digits. Because the bank loan is senior to the CDC loan and the loan is backed by real-estate, there is a low risk that the bank will not be able to get back the money it loans. The low-risk is reflected in the low-interest rates.

The maximum interest rate on the CDC portion of the loan is set by the SBA.

If you re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan. We recommend working with Liberty SBF for SBA 504 loans. If you have credit score is above 680 (check here for free), you ve been in business 4+ years, are profitable, and need more than $1,000,000, speak with Liberty SBF today.

If you need a commercial real estate loan of $500,000 $5,000,000, another option is a 7(a) loan with a 25-year repayment term. If you have a credit score above 680 (check here for free), you ve been in business 3+ years, are profitable, and will occupy at least 51% of the space, get prequalified in minutes with SmartBiz.


SBA Loan Rates – Current Interest Rates and How They Work, sba loan.#Sba #loan


Sba loan

Sba loan

SBA Loan Rates Current Interest Rates and How They Work

There are three primary types of SBA loans: SBA 7A Loans, SBA Express Loans, and CDC/504 Loans. SBA 7A loans and SBA Express loans can be used for a wide variety of purposes, including growth capital and refinancing. CDC/504 loans, on the other hand, are specifically for the purchase of fixed assets like real estate and heavy machinery.

November 2017 Maximum interest rates on SBA 7A Loans range from 6.5 % to 9 %. Full Table

November 2017 Maximum interest rates for the CDC portion of CDC/504 Loans currently range from 4.08% to 4.43% including fees. Full Table

Before reading further, make sure you are qualified. Though there are exceptions, and startups are sometimes eligible, there are five general requirements for getting an SBA loan:

  • In business at least 2 years
  • Personal credit score is 680+ (check your score for free here)
  • Seeking at least $30,000
  • At least $50,000 in revenues for the past 12 months
  • Business is profitable

Sound like you? We recommend applying with SmartBiz. They are the best company we have found at providing quick turnarounds on SBA loan approvals, and you can find out how much you qualify for in 5 minutes.

Current SBA (7A) Loan Interest Rates and Explanation

The Small Business Administration (SBA) sets the maximum interest rates that banks can charge on 7A loans. The current maximum interest rate ranges from 6.5% 9%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on SBA 7A loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

Maximum Interest Rates on SBA 7A Loans for November 2017

Detailed SBA 7(a) Interest Rate Explanation* Please note SBA 7A Express loans carry a higher interest rate for similar size amounts and terms than the standard 7A loans above. We recommend avoiding SBA Express loans as firms like SmartBiz can provide approval for the standard 7A with similar turnaround times.

As the table above shows, the maximum interest rate on SBA 7(a) loans is based on three factors:

  1. A base rate (one of the following publicly available interest rate measures): Prime Rate, LIBOR (one month) + 3.0%, or SBA Peg Rate
  2. The term of the loan: Less than 7 years or greater than 7 years. For example, 3 and 5 year loans would all fall into the same category of under 7 years.
  3. The size of the loan: Under $25,000, $25,000 to $49,999, and over $50,000. For example, loans of $30,000 and $45,000 will fall under the same category.

As the table shows, loans longer than 7 years have a maximum interest rate which is half a percent higher than similar size loans that are for terms that are less than 7 years.

Loans for more than $50,000 have 1% lower maximum interest rates than loans between $25,000 and $49,999 when taken for similar terms. Similarly, loans for $25,000 to $49,999 have 1% lower maximum interest rates than loans for less than $25,000.

Fixed vs. Variable SBA Interest Rates

7A loans can have a fixed or variable interest rate. With a fixed rate loan, the loan interest rate remains constant throughout the life of the loan. With a variable rate loan, the loan’s interest rate can change (often referred to as a reset) at regular intervals, such as quarterly or monthly.

With variable rate SBA 7A loans, the rate is reset based on one of three publicly available market interest rate numbers, plus a fixed percentage. The interest rate must always be at or below the maximum interest rate set by the SBA. For smaller size SBA loans (for example those under $500,000), banks tend to offer only variable rate loans, with interest rates at or close to the maximum allowable by the SBA.

The Base Rate And Interest Rate Resets

Banks can choose one of three market interest rate measures as their base rate. These are the prime rate, LIBOR + 3.0%, or the SBA peg rate. While there are small differences between these rates, they tend to track each other very closely. The Prime Rate is the one that s most commonly used.

Rates as of November 1, 2017:

  • Prime Rate: 4.25% (source: WSJ)
  • LIBOR (one month) + 3.0%: 4.24% (source: Bankrate)
  • SBA PEG Rate: 2.625% (source: National Association of Government Guaranteed Lenders)

These rates can go up or down based on market conditions. Currently, they are at decade low levels. Over the last 10 years, the Prime Rate has been as high as 8.3%.

With a variable rate SBA 7A Loan, as market interest rates rise so will the rate on the loan. Let’s take the example of a 10-year loan for $50,000 with interest rates rising by 2%.

The maximum interest rate on the loan currently would be 7.75%, with a monthly payment of $600 per month. With a 2% rise in interest rates upon the interest rate reset, the rate would be 9.75%, with a monthly payment of $654 (this would be the monthly increase for a newly issued loan. If the loan was older, the increase in monthly payment would be lower).

Interest Rates Are Not The Only Costs To Borrowing Money: APR/APY

When taking a loan, there is often an origination fee. This fee supposedly covers the costs of the bank or financial institution of making the loan, including marketing costs. However, the origination fee is not directly based on costs and is arbitrarily set by the financial institution. An origination fee of 4% is not unusual. The fee is typically taken “off the top”. For example, a borrower taking a $50,000 SBA loan with a 4% origination fee would only receive $48,000.

SBA 7(a) loans also have a guarantee fee. Initially, the lender pays this fee to the SBA, but it s almost always passed on to the borrower at closing. Currently, the SBA has waived fees for loans under $150,000. Above that, the fee typically ranges from 3 % to 3.5 % of the guaranteed portion of the loan. The exact percentage depends on the size of the loan and the length of the loan. For example, if a borrower takes a $250,000 10-year 7a loan, the SBA may guarantee 75 % of that, or $187,500. 3 percent of that amount, or $5,625, is the guarantee fee that will be charged to the borrower. For more info, click here.

The true cost of borrowing money (interest rate + fees) is often called the APY (Annual Percentage Yield) or APR (Annual Percentage Rate). On a ten year SBA loan, the effect of fees can create an APR or APY that is around 1% higher than the loan’s interest rate. The shorter the loan the bigger the impact that fees will have on the APY/APR.

What size SBA loan could you qualify for? Apply with SmartBiz and get an estimate in minutes.

November 2017 SBA Loan Rates On Real CDC / 504 Loans

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 3.83% to 4.56%, depending on the size of the loan and the amount being borrowed.

The maximum interest rates on CDC/504 loans are also based on market interest rates. As market interest rates change, so will the maximum interest rates on these loans.

While a 7A SBA Loan can be used to purchase real estate, a Real CDC / 504 Loan will tend to provide borrowers with tremendous interest rate savings. A CDC / 504 loan is composed of two loans:

  1. A loan from a financial institution (bank) for typically 50% of the price of the property, equipment, and building upgrades.
  2. A loan from a Certified Development Company (a non-profit) for 40% of the price.

The remaining 10 % is a down payment from the borrower. The interest rates on the bank portion of the loan are not set by the SBA. However, the interest rates on these loans tend to be very low, currently in the mid-single digits. Because the bank loan is senior to the CDC loan and the loan is backed by real-estate, there is a low risk that the bank will not be able to get back the money it loans. The low-risk is reflected in the low-interest rates.

The maximum interest rate on the CDC portion of the loan is set by the SBA.

If you re in the market for commercial real estate and will occupy at least 51% of the space, you may be a good candidate for an SBA 504 loan. We recommend working with Liberty SBF for SBA 504 loans. If you have credit score is above 680 (check here for free), you ve been in business 4+ years, are profitable, and need more than $1,000,000, speak with Liberty SBF today.

If you need a commercial real estate loan of $500,000 $5,000,000, another option is a 7(a) loan with a 25-year repayment term. If you have a credit score above 680 (check here for free), you ve been in business 3+ years, are profitable, and will occupy at least 51% of the space, get prequalified in minutes with SmartBiz.


SBA Loan Programs and Information, HCDC Lending, sba loan.#Sba #loan


sba loan

Sba loan

Pogo Play

$1,230,000 Project Cost

$447,000 HCDC Debenture

Third-Party Lending Partner: Fifth Third Bank

Sba loan

The Roehr Agency

$1,787,018 Project Cost

$737,000 HCDC Debenture

Third-Party Lending Partner: CBank

Sba loan

Sunrise Treatment Center

$790,000 Project Cost

$328,000 HCDC Debenture

Third-Party Lending Partner: Huntington National Bank

SBA 504 Loans

Sba loan

Skyline Fairfield

$1,450,250 Project Cost

$602,000 HCDC Debenture

Third-Party Lending Partner: MainSource (Now First Financial) Bank

Sba loan

Dubwerx

$1,245,897 Project Cost

$518,000 HCDC Debenture

Third-Party Lending Partner: Republic Bank

Sba loan

Houdini’s Room Escape

$811,000 Project Cost

$297,000 HCDC Debenture

Third-Party Lending Partner: Spring Valley Bank

A Powerful Financing Tool

The U.S. Small Business Administration (SBA) 504 loan program provides small and medium-size businesses with long-term, low, fixed-rate financing for owner-occupied commercial real estate and heavy machinery projects. The inspiration behind the SBA 504 loan is to promote business investment and job creation by providing access to low down payment financing, so that small businesses can preserve cash to operate their business.

How does the SBA 504 Loan work?

The SBA 504 loan packages two loans together, one from HCDC and one from a private lending partner, such as a commercial bank or credit union. The structure of the loan is typically 50/40/10.

The lending partner makes a commercial loan typically 50% of the total project costs and holds a first mortgage.

HCDC provides a subordinated, fixed-interest rate, long-term loan for up to 40% of project cost up to $5 million ($5.5 million in special cases).

The borrower typically provides an equity injection of as little as 10% of the project cost.

Immediate and Long-Term Benefits for Small Businesses:

  • Borrower often needs only 10% down leaving more cash to run your business.
  • Low fixed-rate financing for the 504 portion of the loan- you don t have to worry about the prime lending rate going up for the 504 portion of the loan.
  • Long-term financing for 10 and 20 years- longer loan terms makes the monthly payments lower.
  • Minimize collateral risk with a first lien position and typically a 50% loan-to-value ratio.
  • Smaller banks can work on larger projects while bigger banks can limit exposure to certain industries.
  • Assist more customers by leveraging lending capacity across more borrowers.
  • Leverage the guarantee by the SBA to help customer who otherwise would not meet lending standards.
  • HCDC’s SBA Loan Experts will handle all the application paperwork, processing and review required by the SBA.
  • Provides Community Reinvestment Act credit.

Who Is Eligible for the 504 Loan Program?

  • For-profit corporations, partnerships and proprietorships.
  • Businesses whose net worth does not exceed $15,000,000.
  • Net profits must average less than $5,000,000 during the previous two years.

What Is Eligible for the 504 Loan Program?

  • Financing for land acquisition.
  • Financing for building acquisition or construction.
  • Financing for renovation or expansion.
  • Financing for machinery and equipment with a useful life of 10 years or more.
  • “Soft” costs for appraisals, general surveying, architectural work and installation.

Applicants Involved in the Following are Ineligible:

  • Speculative lending or investments.
  • Non-profit institutions.
  • Rental property held primarily for sale or investment.
  • Businesses appealing to sexual nature or prurient interests.

SBA Loans, St, sba loans.#Sba #loans


Small Business Administration (SBA) Loans

Sba loansFirst Home Bank is a Nationwide Preferred Small Business Lender.

Sba loansFirst Home Bank is a Nationwide Preferred Small Business Lender specializing in small business loans across a wide array of industries for business acquisitions, commercial real estate and equipment financing and working capital.

Backed by the federal government, SBA loans serve businesses that might not otherwise meet conventional loan requirements. We are dedicated to growing businesses in the greater Tampa Bay area and across the nation by offering flexible lending options and customized terms to fit your needs.

With several SBA loan options, we can help provide access to the financial support you need to start a new business or expand an existing one!

Small Loan Advantage Program 7(a) Loans

The SBA 7(a) loan program provides loans from $50,000 to $5 million to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs.

SBA 504 Loan Program

The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and budding. First Home Bank offers the SBA 504 Loan Program to businesses located in the greater Tampa Bay area.

SBA International Trade Loan (ITL) Program

The SBA International Loan Program provides growing businesses in a position to expand existing export markets or develop new export markets, or small businesses that have been adversely affected by international trade to improve their competitive position.

US Department of Agriculture (USDA) Business and Industry (B I) Loan Program

The USDA B I Loan Program is designed to help create and maintain employment and improve the economic and environmental climate in rural communities.

If you re looking for longer repayment terms, a lower down payment, debt refinancing, or working capital an SBA Loan may be the perfect solution for you.

  • Longer repayment terms (up to 25 years for owner occupied real estate fully amortizing)
  • Financing from $50,000 to $5,000,000 in capital
  • Down payments as low as 10%
  • No pre-payment penalties for loans with maturities less than 15 years
  • No balloon payments
  • Flexible collateral structure

*All loans are subject to credit approval procedures and credit standards.

Sba loans