Small Business Administration (SBA) Lending
SBA loan programs are valuable tools for financing the purchase and expansion of your business. At Beacon Bank, we offer all the SBA programs and can assist you in determining which program matches your financing requirements.
7(a) Loan Guaranty Program
The 7(a) Loan Guaranty Program is one of SBA's primary lending programs. It provides small businesses financing up to $1 million with longer repayment terms. Repayment ability from the cash flow of the business is a primary consideration in the SBA loan decision process, but management quality, collateral, and owner's equity contribution are also important considerations.
Low Doc Program
Like the 7(a) Loan Guaranty Program, the Low Doc Program provides small businesses with access to financing with flexible terms. Simplified application requirements include a one-page form and quicker response time from the SBA. Loan amounts range from $50,000 to $150,000.
504 Certified Development Company Loan Program
The 504 Loan Program provides long-term, fixed rate financing for major capital expenditures. This program is typically used to fund projects such as land and building acquisition or improvements or to purchase machinery and equipment. Under this program, Beacon Bank typically provides 50% of the financing requirements, the SBA provides 40% and the business owner provides 10% equity. An important feature of the 504 program is 20 year fixed-rate financing with a maturity up to 20 years on the SBA portion.
Loans made under this program generally follow the SBA standards for size, use of proceeds, type of business and availability of funds. The maximum loan amount is $350,000.
For more information regarding SBA guidelines and application procedures, contact a Business Banker or visit http://www.sba.gov