Our team of experts has strong knowledge of all SBA lending products and a proven ability to successfully work with the Small Business Administration to obtain funding approvals for our customers. Meet the team.
SBA loan programs provide a government guaranty which reduces the risk on the bank allowing for easier access to capital. SBA loans provide a variety of potential benefits, including:
- Lower Down Payments
- Longer Repayment Terms
- No Balloon Payments
- Competitive Interest Rates
SBA 7(a) loans provide borrowers with loan amounts up to $5 million. SBA 7(a) loans may be used for the following purposes:
- Purchase Owner Occupied Real Estate
- Improve or Construct Owner Occupied Real Estate
- Purchase New Equipment
- Leasehold Improvements
- Business Acquisition
- Business Expansion
- Refinance Existing Debt
- Purchase Inventory, Materials, Supplies
- Provide Working Capital for business operating expenses
Why choose an SBA 7(a) loan?
- The loan allows for lower down payments compared to conventional loans so businesses can keep more cash on hand for operations.
- The loan has longer repayment terms, allowing a 10 year term for most purposes however if real estate is involved, the term can be up to 25 years.
- The loan allows for a variety of uses within the same loan. For example, if the business is looking to purchase a building to move to versus renting their space, the loan can be a term of up to 25 years and include funds for improvements, equipment, moving costs, all closing costs and other qualified business expenses.
- The loan allows for more flexible collateral requirements than conventional loans where generally a 1:1 collateral coverage is required.
- There is no balloon payment or renewal requirements, so the business is not required to pay additional fees throughout the term of the loan or be subject to a renewal approval.
SBA Express Lines of Credit is a program within the SBA 7(a) loan program that provides businesses with quicker access to funds. Loan amounts are up to $500,000 and terms are up to 10 years. This product has a revolving feature allowing for interest only for a portion of the term, then the balance is termed out at the end of the revolving period for the remaining term of the loan.
SBA 7(a) loans are subject to the approval, program requirements (including business size standards), and terms and conditions of both the SBA and CIBM Bank.
SBA 504 loan program provides borrowers with one of the most attractive financing solutions available. What makes a 504 loan so great?
- Low, long-term interest rates, fixed for either 10, 20, or 25 years
- Long term loan maturities and payment amortizations of 10, 20, or 25 years. Borrowers can avoid refinancing risks such as the deterioration of property values.
- Lower down payments, often only 10%. In most cases, borrowers receive a 90% advance rate, which helps preserve working capital. Special use properties and startups require additional down payments.
- May include soft costs, such as furniture, fixtures, and closing costs, including third-party fees, in your total project cost.
- Can be used to fund the purchase, construction, or renovation of commercial real estate and/or the purchase of machinery and equipment.
- Can be used to refinance existing debt on real estate and/or equipment.
How does an SBA 504 loan work?
- CIBM provides a first mortgage (or lien) loan for 50% of your total project cost.
- The CDC provides an SBA 504 loan (as a second mortgage or lien) for 40% of the total project cost.
- The Borrower provides a down payment which is typically as low as 10% of the total project cost.
SBA 504 loans are made in conjunction with both the SBA and a local Community Development Corporation (CDC). SBA 504 loans are subject to the approval, program requirements, and terms and conditions of the SBA, CDC, and CIBM Bank.