2. Slide 2
For internal use only.
SBA Loans
The U.S. Small Business
Administration (SBA) offers
numerous loan programs to assist
small businesses.
The SBA guaranty DOES NOT make bad loans good!
The SBA is primarily a guarantor of loans made
by banks and non-bank lenders and does not
offer loans directly to small businesses.
3. Slide 3
For internal use only.
SBA Loan Benefits
For Borrowers:
Longer terms
Lower equity requirements
Lower debt service coverage requirements
Less restrictive collateral parameters
4. Slide 4
For internal use only.
SBA Loan Uses
Purchase owner-occupied real estate
Construction and expansion of business premises
Leasehold improvements
Purchase machinery and equipment, furniture and
fixtures
Business acquisition
Working capital / inventory purchase
5. Slide 5
For internal use only.
7(a) Loans
Overview
Financing available for a variety of general business
purposes including:
— working capital, machinery and equipment, furniture
and fixtures, land and building (including purchase,
renovation and new construction), leasehold
improvements and debt refinancing (under special
conditions)
CUSTOMERS: Start-up and existing for-profit small
businesses that are owner-operated.
Equity requirements generally range between 10%-30%.
6. Slide 6
For internal use only.
7(a) Loans
Terms & Conditions
Terms
Real Estate: - up to 25 years
Machinery & Equipment – up to 10 years
Working Capital – up to 10 years
Business Acquisitions – up to 10 years
Interest Rates
Loan > $250,000, Term 7 to 25 years: Maximum rate = Wall Street Journal
Prime Rate + 2.75%
Adjusts quarterly with any change in WSJ Prime
Variable rates
Loan Amount
Maximum: $5Million
Typically looking for loans of $250,000 or more.
7. Slide 7
For internal use only.
504 Loans
Overview
Long-term, fixed-rate financing for the acquisition or debt refinance
of real estate, machinery or equipment. Loan does NOT finance
working capital or inventory.
Typical projects include a loan secured from a lender with a senior
lien for no less than 50% of the project cost, a loan secured from a
Certified Development Company (CDC) with a junior lien covering up
to 40 percent of the total cost, and a contribution of at least 10
percent equity from the borrower.
Target Customers: Small businesses requiring “brick and mortar”
financing/refinancing.
8. Slide 8
For internal use only.
Available for R/E and equipment financing/refinancing
Start-ups or existing businesses
Floating and fixed rate options available on the 1st
Deed
of Trust loan - finances 50% of total project cost
Fixed rate on the CDC 2nd lien 504 loan (for term of 20
years) – finances up to 40% of total project cost
Minimum10% equity from borrower +
*5% additional for start-ups
*5% additional for single purpose buildings
504 Loans
Overview
9. Slide 9
For internal use only.
Advantages – borrower:
Provides growing companies with permanent
fixed asset financing
Lower equity injection requirements conserve
applicant’s operating capital
20-yr fixed rate financing on CDC 2nd
lien note
Long term fully amortizing maturities
Up to 90% financing available
504 Loans
Overview
10. Slide 10
For internal use only.
Business Acquisitions
Loans to professionals: Doctors, Dentists, Veterinarians
Hotels
Pet Hotels/Boarding Facilities
Child Care Facilities
Real Estate Financing
Franchise Restaurants
Gas Stations/Convenience Stores
Car Washes
General Automotive
Grocery Stores
Service Companies
Manufacturers & Wholesalers
Good SBA Loan Prospects
11. Slide 11
For internal use only.
Linda Amador-Stephens
Vice President
Integrity Bank
4040 Washington Drive
Houston, Texas 77007
Office: 832-454-1154
E-mail: lstephens@ibanktx.com
