SBA Loans

History

The Small Business Administration (SBA) was proposed by President Dwight Eisenhower and later established by Congress on July 30, 1953. Its main purpose was to, "aid, counsel, assist and protect, insofar as is possible, the interest of small business concerns." Most small businesses during this time had not been able to get the financing and credit needed to keep up with all of the advances in technology. Over the past 53 years, the SBA has become the largest single financial backer of U.S. businesses in the nation. New SBA programs continue to emerge including minority small business programs, micro loans, etc. helping small businesses of every kind to continue to grow and thrive.

The SBA understands that each business has unique financial requirements which most conventional lenders can not help them with. SBA loan terms offer the necessary flexibility to help with theses unique requirements and still allow the business owners to get the financing they need.

Who is Eligible for an SBA Loan?

The SBA allows any small business that is independently owned and operated and is not dominant in its field to apply for an SBA loan.

Main Loan Programs:

SBA 7a Loan
Tpye of Loan: Variable rate
Max Loan: $2,000,000
Index: Low New York Prime
Spread: 0% - 2.75%
Amort. / Due: 25 years fully amortized
Occupancy: 51% + owner occupiedGuarantee: Buyer and all 20% + owners$ Down: 10% - 20%
Prepay Penalty: 5%, 3%, 1% for years 1-3*
Assumable: Yes
Time to Fund: 4 - 6 weeks
Job Requirement: None
* You may pay down 25% of principal per year without a penalty

SBA 504 Loan
Type of Loan: Fixed rate
Conventional 1st: 50% of loan value
SBA 2nd Debenture: 40% of loan value
Interest Rate: Varies
Amort. / Due: Conventional varies, 20 years on SBA second
Occupancy: 51% + owner occupied
Guarantee: Buyer and all 20% + owners
$ Down: 10% - 20%
Prepay Penalty: Yes
Assumable: Yes
Time to Fund: 8 - 12 weeks
Job Requirement: One per $35,000 of debenture
* You may pay down 25% of principal per year without a penalty

What Can SBA Loans Be Used For:

Working Capital 7 Years
Equipment Financing 10 Years
Business Acquisition 10 Years
Inventory Financing 10 Years
Real Estate Acquisition 25 Years
Real Estate Construction 25 Years

How to Apply

The application process is very simple. If you wish to apply for an SBA loan go to www.usmortgageaid.com and fill out an application so we can connect you with a commercial mortgage lender that fits your needs. Most brokers / lenders will require that you provide the following information:

* Personal Financial Statement
* Business / Personal Tax Returns for the last 3 years

For more information regarding commercial loans and residential loans go to www.usmortgageaid.com and get up to 4 FREE Quotes for your financing needs today!

About the Author

Chad Pitt who specializes in Orange County home loan advisement, and is also a commercial mortgage lender. His company Us Mortgage Aid, is located and serving people nationwide.

Recommended Loan and Refinance Service: uslso.com
 

Recommended Loan and Refinance Service: uslso.com