Nationwide SBA 7(a) Loans

Our National Non-Bank Preferred SBA Lender Can Say “Yes”
When Your Local Banker Says “No”

In today’s credit market, even banks that can process SBA loans are not funding these loan requests. Large banks have too many bad loans on their books or need to increase their cash reserves. This may also be true for many community and regional banks.

However, as my articles indicate in the section Tips & Advice To Borrowing Money, there are a number of community banks very active in SBA lending. One caveat to getting an SBA loan through a local community bank is they tend to fund small balance loans under $300,000.

If your loan amount request is under $300,000, then a community bank should be a good choice. If you need to borrower more than $300,000 and up to $2 million, then we are here to help you with our nationwide SBA lender.

Overview of the SBA 7(a) Loan Guaranty Program

This is the primary SBA business loan program to help small businesses obtain a loan when they might not be eligible for business loans through normal lending channels. It is a very flexible program for a variety of general business purposes. Loan funds can be used for:

• Real Estate, Machinery & Equipment Purchases
• Construction: Expansion Improvements
• Permanent Working Capital support of Account Receivables and Inventory
• Buying a business or franchise
• Refinance of business debt (under special conditions)

There is a Franchise Registry that lists names of franchise systems that have already gone through a review process by the U.S. Small Business Administration. What that means for you, the buyer, is a faster approval and funding process.

Loan applications for franchises on the Franchise Registry can be reviewed and processed more efficiently and quickly by SBA and its lenders because the respective franchise agreements do not need to be reviewed in each individual franchisee situation.

This is because, through the Registry process, the SBA has already reviewed the franchise agreement and has determined that there are no unacceptable control provisions by the franchisor over its franchisees.

• The maximum loan amount is $2 million. The SBA will now guarantee up to 90-percent of each 7(a) loan made by private-sector lenders. This is an increase from the normal 75-percent to 85-percent guarantee.

• Fixed and variable rates available.

• Loan maturity is up to 7 years for working capital.

• Loan maturity is up to 10 years for machinery and equipment.

• Loan maturity is up to 25 years for fixed assets.

• SBA charges an annual servicing fee of about .50% on the amount guaranteed. It also charges a sliding-scale fee on new loans, ranging from 1% to 3.5% of the guaranteed portion of the loan amount.

• Minimum borrower equity of 10% (SBA expects lien on residence if business collateral coverage is less than 1:1 and if equity is 25%)

FYI: Terms are subject to change.

Certified Lenders and Preferred Lenders Will Get Your SBA Loan Approved and Funded Faster

While most banks, as well as certain commercial finance companies, offer SBA loans, there are two specialized categories you should know about, namely, Certified Lenders and Preferred Lenders.

Both of these types of lenders have entered into contractual relationships with the SBA and officially participated in the Certified Lender/Partner Lender Programs (CLP/PLP).

About 850 lenders qualify for the Certified Lender Program representing about 4% of all SBA business-loan guarantees. Since the certified bank does much of the SBA’s work, the agency offers quick turn times of 3 business days for processing the completed application.

About 450 lenders qualify for the Preferred Lender Program representing about 21% of the SBA loans. Preferred lenders have full lending authority and as a result can offer 1-day turn times on completed applications.

How To Apply for an SBA 7(a) Loan Now

The minimum loan amount is $250,000 for your project.

We work with a non-bank, SBA preferred-status, lender to get you approved and funded quickly.

Their application process is super convenient – meaning one of their SBA specialists will conduct an initial phone interview with you to make sure an SBA 7(a) loan is the right match for your project.

You will be asked to provide documentation on the business, income documentation and tax returns.

Next, the specialist will fill out the loan application for you with their specialized software program. This takes the hassle out of the loan process for you as well as eliminate mistakes.

If you are ready to apply for an SBA loan, Click Here Now To Send Us An Email and we will get you set up to speak directly with our SBA lender.