SBA 7(a) Loans in Washington, Oregon and Idaho

·         Equipment purchases (machinery, business vehicles)

·         Permanent working capital

·         Inventory

·         Business expansion

·         Business purchase/acquisition (100% change in ownership)

·         Real estate purchase

·         Land acquisition and real estate construction

·         Real estate improvements

·         Refinance of existing business debt

·         Startup costs (case-by-case basis)

AMOUNTS

·         Minimum- $10,000

·         Maximum – $5 Million

MATURITY

·         Inventory or working capital- Typically structured at 7 years but not to exceed a maximum of 10 years

·         Equipment, fixtures, or furniture- Typically structured at 7 years but not to exceed a maximum of 10 years, it may not exceed the economic useful life.

·         Real Estate, including acquisition, rehabilitation, renovation, or construction- Up to 25 years plus any interest period to reasonably complete the construction or improvements

·         7(a) Refinancing- Must coincide with the remaining useful life of the assets being refinanced or use of proceeds chart

·     Variable Rates – based on Prime Rate based on dollar amount of loan and term

·     Fully-Amortized over life of loan (No Balloon)

·     Pre-Payment Penalty- Under $350,000- None, Over $350,000- 5,3,1%

·     SBA Guaranty Fee- $25,000-$150,000- 2% $150,001 to $700,000- 3%, $700,001- $5Mill- 3.5% (SBA changes SBA fees from time to time)

·     Lender may charge up to $2500 packaging fee.

WHO QUALIFIES

·            Must be for profit and meet size standards

·            Good Character and credit management

·            Must be an eligible type of business

BENEFITS FOR BORROWERS

·            Long term financing

·            Improved Cash flow

·            Fixed Maturity

·            No balloons

·            No prepayment penalty under 15 years and $350,000