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Use of Proceeds:

Up to 90% financing for the purchase of land and/or building.
Up to 80% financing for the purchase of machinery and equipment.
Up to 90% financing for the expansion of an existing facility.
Can refinance 100% of existing debt under certain conditions.
Up to 80% financing for the purchase of an existing business.
Can finance working capital and closing costs in conjunction with the above.

Eligible Businesses:

Operating, for profit Corporations, Limited Liability Corporations, Partnerships. Or Sole Proprietorships.
Business in existence for minimum of two years.

Target Loan Size:

Minimum loan of $150,000.
Maximum loan of $2,000,000.
Loans above $2,000,000 will be looked at using the SBA's "piggy back" loan program.
The maximum loan amount under the "piggy Back" program is $3,500,000.

Loan Structure:

Up to 25 year financing for real estate acquisitions, real estate refinances land purchases or construction loan take-outs.
Up to 10 year financing for the purchase of an existing business.
Up to 10 year financing for the purchase of machinery and equipment.
Up to 7 year financing on working capital, and closing costs.

Interest Rates:

Loans will be priced on a variable basis, tied to the New York Prime Rate and will adjust quarterly.
Minimum pricing will be at New York Prime + 1.50%
Maximum pricing will be at New York Prime + 2.75%

Qualifying Criteria:

Owner must be actively involved in the business operations.
Business must have adequate debt service coverage based on historical earnings.
Business must have an adequate debt to worth based on the adjustments to the pro forma balance sheet using the benefits of the new loan.
Borrower's business must occupy no less than 51% of an existing building and no less than 67% of the "to be built" facility.
Alter Ego Ownership of the company's real estate is allowed.
Credit score of 660 or higher.
Experience in the type of business you are attempting to acquire.
At least 20% down from money on hand (there are exceptions).

Collateral:

No unsecured loans are available under this program.
Goodwill is considered to be an asset when a business is being purchased.
If the SBA loan is under-collateralized based on the SBA Liquidation values, the guarantor may be required to collateralized his/her primary residence by utilizing a 2nd or 3rd mortgage.

Fees:

The SBA does not allow the Bank to charge the borrower points on a 7A guaranteed loan, unless it involves a construction loan. The SBA charges a fee, which is based on the size of the loan guarantee.
The bank will charge a packaging fee of $1,500 on all loans.

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