Conventional

SBA 504 Loan Specifications  

SBA 7(a) Loan Specifications 

Purpose:

Acquisition, Refinance, Expansion, Construction/Renovation, Machinery and Equipment, Working Capital, and Recapitalization

Acquisition, Expansion, or Construction/Renovation of Commercial Real Estate and/or Machinery and Equipment

Acquisition, Refinance, Expansion, Construction/ Renovation, Machinery and Equipment, Inventory, and Working Capital

Loan Amount:

$150,000 - $6,000,000

1^st Mortgage (50%): $100,000 - $4,500,000
2^nd Mortgage (40%): $80,000 - $3,600,000

 $150,000 - $5,000,000

Interest Rate:

Fixed and Variable Rates available

^st Mortgage (Conventional Permanent):
Fixed and Variable Rates avaiable

2^nd Mortgage (SBA):
Fixed Rates: Determined by SBA at Closing

Interim Mortgage (Conventional Bridge):
Fixed and Variable Rates available

Floating Rate up to 2.75% over Wall Street Journal Prime

Term:

5-20 Years with Amortization Periods of 5-25 Years

First & Second Mortgages: Up to 20 years

Up to 25 Years, Fully Amortized

Fee:

1% Commitment Fee

First Mortgage: 1.5% Commitment Fee
Interim Mortgage: 1.0% Commitment Fee

One-Time SBA Guarantee Fee

Diversity:

*Nationwide to a variety of industries (restrictions may apply)

Mid-Atlantic Region

Nationwide to a variety of industries (Restrictions may apply)

Prepayment Penalty:

No Prepayment Penalties

First Mortgage: No prepayment penalties
Second Mortgage: Declining for ½ of term

No Prepayment penalty for loans with maturities of less than 15 Years | For loans with maturities of 15 years or more, a prepayment penalty of 5% in year 1, 3% in year 2, 1% in year 3, and 0% from year 4 to maturity of loan.

Collateral Position:

Lien position on commercial or residential real estate and/or secondary collateral up to a maximum Loan-to-Value of 80%)

Lien position on commercial or residential real estate and/or secondary collateral)

Lien position on commercial or residential real estate, UCC filings on all business assets, and/or secondary collateral)

Recourse:

Full guarantee of all Principals with 20% or more ownership

Full guarantee of all Principals with 20% or more ownership

Full Guarantee of All Principals who have 20% or more ownership

Debt Service Ratio:

Minimum 1.25X

Minimum 1.25X

Minimum 1.25X

Financial Data:

Business: 3 full years of historical business tax returns and interim financial statements for current year | One year of projections for existing business or 3 years of month-over-month projections for start-up businesses | Current Debt Schedule of the Borrower
Personal: 3 full years of historical personal tax returns | Current Personal Financial Statement of Principals with 20% or more ownership | Signed Credit Authorization of Principals with 20% or more ownership

Business: 3 full years of historical business tax returns and interim financial statements for current year | One year of projections for existing business or 3 years of month-over-month projections for start-up businesses | Current Debt Schedule of the Borrower
Personal: 3 full years of historical personal tax returns | Current Personal Financial Statement of Principals with 20% or more ownership | Signed Credit Authorization of Principals with 20% or more ownership

Business: 3 full years of historical business tax returns and interim financial statements for current year | One year of projections for existing business or 3 years of month-over-month projections for start-up businesses | Current Debt Schedule of the Borrower
Personal: 3 full years of historical personal tax returns | Current Personal Financial Statement of Principals with 20% or more ownership | Signed Credit Authorization of Principals with 20% or more ownership

3^rd Party Reports:

Appraisal and Environmental Study

Appraisal and Environmental Study

Appraisal and Environmental Study