Small Banking Administration (SBA) Loans
The Small Business Administration (SBA) has created a program of government-guaranteed loans designed to help give small businesses that may not otherwise qualify for credit get the funds they need. SBA loans make it possible to qualify and provide more flexible terms than conventional loan options, letting you preserve working capital for other expenses.Qualifying for a SBA loan is easier than qualifying for other loans. First, the SBA allows higher loan-to-value ratios. Depending on your loan request, you may be able to borrow up to 100% of your financing needs. Secondly, we can potentially offer longer finance terms with different payment options. This may be especially advantageous if your business is growing rapidly.SBA loans can help growing businesses purchase or renovate real estate, acquire fixed assets such as heavy machinery or specialized equipment, or supply working capital for ongoing financing needs.
| SBA Express | SBA 7(a) Term Loan | SBA 504 Term Loan | SBA Patriot Express | |
|---|---|---|---|---|
| Loan or Line of Credit? | Line of Credit or Loan | Loan | Loan | Line of Credit or Loan |
| This solution offers: | A streamlined loan application process to access funding for working capital to purchase land, buildings, equipment and inventory. | Longer terms on loans to fund working capital, business start-up, business acquisition and real estate. | Longer term financing loans for businesses to purchase commercial real estate or to expand their existing operations, help the local economy and create jobs; to longer term financing loans for businesses to purchase commercial real estate or to purchase machinery/equipment, help the local economy and create jobs. | A streamlined loan application process to access funding for working capital to purchase land, buildings, equipment and inventory for veterans who are starting or growing their businesses. |
| Best for: | For-profit businesses in a variety of industries. |
For-profit businesses in a variety of industries, including those that are new, in start-up mode or recently acquired.
To be eligible for the 7(a) loan program a business cannot have a tangible net worth that exceeds $15 million and an average net income of greater than $5 million over the past two years. |
To be eligible for the 504 loan program a business cannot have a net worth that exceeds $15 million and an average net income of greater than $5 million over the past two years. | Veterans and members of the U.S. military community who want to establish or expand small businesses. |
| Credit amount: | $5,000 to $350,000 | SBA Loan guarantee cannot exceed $3,750,000. Loan ceiling is $5 million. | $150,000 to $6,000,000 Maximum SBA Loan $5 million for public policy (Up to $5,500,000 for small manufacturers). | Up to $500,000. |
| Rate: |
Loans and Lines of credit less than or equal to $50,000: NY Prime + 6.5%.
Loans and Lines of credit greater than $50,000: NY Prime + 4.5%. |
Fixed or Variable.
Loan Term less than 7 years: NY Prime + 2.25%. Loan Term greater than or equal to 7 years: NY Prime + 2.75%. |
Hometown National Loan: Fixed or variable rate, negotiated between Bank and borrower.
SBA Loan: Below market fixed interest payment. Loan rate set when debenture is sold. |
Fixed or Variable.
Loan Term less than 7 years: NY Prime + 2.25%. Loan Term greater than or equal to 7 years: NY Prime + 2.75%. |
Interested in a SBA Loan?
Contact us or visit your local branch.