A general overview of the newly expanded guidelines for SBA financing that the current administration now offers. Learn how to qualify your business for SBA government guaranteed financing.

1. How to Expand or Start a Business
with SBA Government Guaranteed
Financing
Presented by: Mortgage West
Lane Adler, Broker
Telephone: (818)-882-LEND (5363)
http//www.mortgagagewest.net

2. SBA Business Financing
 Small Business Administration
 Benefits of SBA Financing
 Types of Loans Available
 Allowable Use of Funds
 Underwriting and Eligibility Issues
 Other Financing Options
 How to Apply
 Questions and Answers

3. Small Business Administration
 Works in Partnership with the Bank
 Encourage Banks to Lend to Business by
Guaranteeing the Loan
 Old Myths vs. New Process
 Small Business Development Centers
 Promote and Support Business Expansion
 Established 1954
 www.sba.gov

4. Mortgage West
Real Estate Financing
 We Have Access to the Small Business Loan Exchange With 100 +
Banking Partners available to you and Funding in all 50 states.
 Our Managing and Regional Directors Have 30+ Years Experience
in Many Areas of Financing, Including Commercial and Residential.
 Our Goal: To Help Small Businesses to Increase Their Income and
Save Money Through Government Guaranteed Financing.

5. Benefits of SBA Financing
#1 Benefit; Access to Capital
 Longer terms 7 to 25 Years
 Competitive Interest Rates
 Easier Qualifying Guidelines
 Lower Payments
 Start up and Established Business’ OK
 Low Down Payment, 10% to 30%
 Can be Assumable, SBA Approval

6. Available Loan Programs
 7(a) Loans
 Patriot Express
 504 Loans

7. Allowable Use of Funds
 Start up Costs  Business Acquisition
 Hard and Soft Costs  Partner Buyout
 Working Capital  General Business
 Real Estate Purchase Expansion
 Equipment  Machinery
 Franchise Purchase  Inventory
 Refinance Existing  Payroll
Debt  Advertising

8. 7(a) Loans
 Bank loans money, SBA guarantees up to 75% of
the loan amount. (Currently 90%)
 Loans up to $2,000,000, guaranteed loan amount is
$1,500,000
 Use for commercial real estate purchase,
construction, improvements, debt refinance,
equipment purchase, working capital, business
expansion, revolving line of credit

9. 7(a) Loans Terms and Fees
 Minimum of 7 years; depends on lease
 Equipment, 10 -15 years
 Real Estate up to 25 Years
 Fully Amortized, no Balloon or Call
 Declining Pre Payment Penalty 5,3,1
 Adjustable Rates, Prime + Margin or
LIBOR + 3 + Margin
 SBA Guarantee fee to 2 - 3.5% (Currently Waived)
 Form 159 Packaging Fee, $2,500
 Other Third Party Fees

10. 7(a) Eligibility
 Must be for profit and legal
 Must be a small business; < $8 million net
assets & < $3 million average revenue
 For Real Estate must be 51% owner
occupied, 60% new construction
 Not a Felon
 Citizen or Permanent Resident Alien

11. What’s Not Eligible
 100% Gaming, less than 20% of Revenue
 All Lending Companies
 Pawn Shops
 Adult Business’
 Apartment Complexes
 Pure Investment Properties
 Mini Storage

12. Patriot Express
 Same as 7(a) but for Veterans
 Maximum Loan to $500,000
 SBA Guarantee up to 85%
 Fixed Term or Revolving Line of Credit
 Disabled Vets, Current or Widowed Spouse,
 Reservists and National Guard
 51% Ownership

13. 504 Loan Program
 Real Estate Purchase or Construction and
Expensive Equipment with 10 year Life+
 Minimum is $250,000
 Maximum Project Cost $8MM
 50,40,10 Loan
 Bank Lends 50%,SBA/CDC Lends 40%
 Borrower Invest 10%
 Must be Owner Occupied Property

14. 504 Eligibility
 Same as 7(a) +
 No more than $8MM in net assets
 Fixed 1st 5 years, Adjustable based on Index
Flexibility- 3/1, 5/1 25 year amortization
 Fixed 2nd 20 year Term
 Prepayment Penalty on Both Loans

15. 6 C’s of Underwriting
 Credit
 Capital
 Collateral
 Cash Flow
 Capacity
 Character
 The Probability of Success.

16. Loan Package Components
 Business Plan
 Tax Returns
 Financial Statements
 Use of Proceeds
 Statement of Equity
 Credit Reports
 Supporting Documents

17. Other Factors
 Time in Business
 Owners Cash Investment
 Success of Industry
 Resumes of Key Employees
 Location Lease
 A Bigger Package is Better
 Compensating Factors

18. Eligibility
 Restaurants? Yes
 Start up Business? Yes
 Equipment Purchase? Yes
 Practice Expansion, Partner Buyout? Yes
 Land Purchase and Construction? Yes
 Permanent Resident Alien? Yes
 Working Capital? Yes
 Real Estate Purchase? Yes

19. Financing Options
 SBA Loans $150,000 to $8 Million
 SBA Revolving Lines of Credit $350,000
 Commercial Real Estate Loans $52 Million

20. How to Obtain Financing
 Initial SBA Eligibility Consultation
 Review Retainer Fee Agreement & Form 159
 Complete Preliminary Application
 Letter of Intent Issued
 Complete SBA Application
 Submit Documentation to Lender
 Funding within 45 Days
 Funds Received – Wire or Check

21. Questions and Answers
1. Complete SBA Compliance Agreement
2. Schedule Appointment for SBA Eligibility Consultation
Contact
Lane Adler
Telephone: (818)-882-9205
email: sba@mortgagewest