SBA 7(A) Program

The SBA’s 7(a) loan gives small- to medium-sized businesses, established entrepreneurs, and professionals access to other resources for additional capital. The only difference between this type of financing and conventional financing is the government guarantee, which can be up to 75% of the loan amount.

BORROW UP TO $5 MILLION*

Under this SBA 7(a) program, the maximum loan size is $5 million.

TERMS AND RATES OF SBA 7(A) LOANS

  • The terms range from seven to 25 years, depending on how you intend to use the funds.
  • Rates are variable, and usually don’t exceed 2.75% over low New York Prime for loans over $50,000.

YOUR SMALL BUSINESS CAN USE A SBA 7(A) LOAN FOR:

  • Working Capital
  • Inventory
  • Business Acquisitions
  • Equipment
  • Real Estate
  • Debt Refinancing

SBA 504 Program

FINANCE YOUR COMMERCIAL BUILDING
 
The SBA’s 504 Loan Program allows you, the business owner, to purchase an owner-occupied industrial, commercial building or fixed assets at below-market interest rates with as little as a 10% down payment. The loan proceeds may be used to purchase or remodel an existing building or to construct a new facility.
 
BORROW UP TO 90%*
 
Your Business can borrow up to 90% of the project cost or appraised value of the property, whichever is less.
 
TYPICAL SBA 504 LOAN STRUCTURING
 
  • Financing for the first 50% of costs: The bank provides a First Trust Deed (TD) loan for 50% of the project cost.
  • Financing for the next 40% of costs: Certified Development Corporation (CDC)/SBA provides a second TD loan for 40% of the project cost. While the CDC/SBA audits funding for its loan from the sale of a debenture, the bank provides an interim loan for the amount of the CDC/SBA Second TD loan.
  • Financing for the final 10% of project costs: The borrower provides 10% of the total project cost.
TERMS, RATES, AND FEES FOR SBA 504 LOANS
 
  • Bank portion of your Small Business’s SBA 504 loan can have a 10- to 25-year maturity, with an amortization period of up to 25 years at the current market rate.
  • The CDC/SBA loan will be fully amortized over a 25-year term. The interest rate is fixed and based on the rate of the sold debenture. A declining prepayment penalty applies.
APPLYING IS SIMPLE
 
When applying for an SBA loan – as with any loan – you are asked to fill out a standard application and provide specific documentation. We will work with your accountant, and do all of the analysis, packaging, and interface with the CDC/SBA for you.
 
APPROVAL TURNAROUND – 30 TO 60 DAYS
 
A typical SBA 504 loan undergoes two approval processes. PCF reviews the application. If the bank approves it, the application is then submitted to the CDC for approval and the accompanying SBA approval. The complete procedure from application submission to disbursement of funds takes approximately 30 to 60 days, depending on the complexity of the loan.
 
At PCF, we serve our clients with promptness and expertise. We not only believe an SBA loan is a great source of funding for small businesses, but we put that belief into action. We’re extremely knowledgeable in the field, and try to match our clients’ financial needs to the most appropriate program available.

SBA EXPRESS Program

SBA EXPRESS LOAN: GOVERNMENT GUARANTEE UP TO 50%
 
The SBAExpress Program offers lines of credit as well as term loans. Like the SBA 7(a) Program, an SBAExpress loan gives small- to medium-sized businesses, established entrepreneurs, and professionals access to other resources for additional capital. The only difference between this type of financing and conventional financing is the government guarantee – which can be up to 50% of the loan amount.
 
YOUR SMALL BUSINESS CAN BENEFIT FROM SBA EXPRESS PROGRAM WITH:
  • Lines of credit.
  • Term loans with longer amortizations.
  • Lower equity investment requirements.BORROW UP TO $350,000*
  • Under the SBAExpress Loan Program, your Small Business can obtain a maximum loan size of $350,000.
TERMS AND RATES FOR SBA EXPRESS LOANS
 
Lines of Credit: Terms of 1 to 7 years
 
TERM LOANS:
  • Working Capital and Inventory: 7 years
  • Equipment: 10 years
  • Real Estate: 25 years
  • Interest Rate: Variable rate based on prime.
YOUR SMALL BUSINESS CAN USE AN SBA EXPRESS FOR:
 
  • Working Capital
  • Inventory
  • Business Acquisitions
  • Equipment
  • Real Estate
  • Debt Refinancing

USDA Business and Industry Guaranteed Loan Program

  1. Providing financing solutions across the country to business owners with maximum loan amounts up to $25 million in rural areas including cities and towns with a population less than 50,000. The USDA B&I Loan Program may provide businesses that qualify with a higher loan amount and longer repayment terms. Maximum term:
    • Up to 7 years for working capital.
    • Up to 15 years for machinery and equipment (or useful life).
    • Up to 30 years for commercial real estate (or useful life).

    Appraisals:

    • All collateral must secure the entire loan and Borrower Equity requirements must be met.
    • Bank ordered appraisal reports prepared by qualified appraisers are required on all property that will serve as collateral.

    Borrower equity required:

    • Minimum of 10% tangible balance sheet equity required for existing businesses.
    • Minimum of 20% tangible balance sheet equity required for start-up businesses.
    • Equity is calculated from GAAP compliant financial statements.
    • Feasibility studies may be required.

    Typical loan purposes include:

    • Business and industrial acquisitions, construction, conversion, repair, expansion, modernization or development costs.
    • Purchase equipment, machinery, or supplies.
    • Start-up costs and working capital.
    • Processing and marketing facilities.
    • Pollution control and abatement.

    Eligible borrower categories may include:

    • Individuals, corporations, cooperatives, partnerships and other legal entities.
    • Public or private.
    • For-profit or non-profit.

    Eligible industries may include, but are not limited to:

    • Assisted Living
    • Auto Repair
    • Franchises
    • Gas Stations
    • Hotels
    • Insurance Agents
    • Investment Advisors
    • Medical & Dental
    • Office Buildings1
    • Professional Services
    • Skilled Nursing
    • Quick Lube