SBA and USDA Lending 1/28/2014. Benefits of SBA Financing. Small Business Administration and United State Department of Agriculture

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "SBA and USDA Lending 1/28/2014. Benefits of SBA Financing. Small Business Administration and United State Department of Agriculture"

Transcription

1 SBA and USDA Lending Small Business Administration and United State Department of Agriculture Work in Partnership with Banks Encourage Banks to Lend to Businesses by Guaranteeing loans to reduce Lender Risk 54,107 SBA loans totaling $29.5 billion funded FYE 9/30/13 Benefits of SBA Financing Longer terms of up to 10 years for Non Real Estate and 25 years for Real Estate No Balloon Payments Competitive Interest Rates Low Down Payments Lower Collateral Requirements Loans Are Assumable 1

2 Available SBA Loan Programs 7(a) Loans 504 Loans Express Program CAPLine Program Allowable SBA Use of Funds Real Estate Purchase Building Construction Equipment Purchase Debt Refinancing Inventory Franchise Purchase Leasehold Improvements Business Acquisition Partner Buyout General Business Expansion Working Capital Payroll Advertising Start Up Costs 7(a) Loans Bank loans money SBA guarantees up to 85% of the loan amount. Bank loans up to $5,000,000 with guaranteed loan amount of up to $3,750,000 Use for commercial real estate purchase, construction, improvements, debt refinance, equipment purchase, working capital, start up, business expansion 2

3 7(a) Loans Terms and Fees Non Real Estate Use up to 10 year term Real Estate Use up to 25 year term Blended Maturity for Multiple Purpose Loan Fully Amortized with no Balloon or Call Declining 3 year Pre Payment Fee for loans with terms of 15 years or longer Typically Adjustable Rates Prime + Margin SBA Guarantee fee % of guaranteed portion SBA Loan Eligibility Must be for profit business Must be a small business less than $15 million tangible net worth & $5 million in average after tax net income for last 2 years (business and affiliates combined) Must be an active rather than passive business For Real Estate must be 51% owner occupied for existing building and 60% for new construction All owners of 20% or more of business must provide a full guaranty (individuals and entities) 504 Loan Program Real Estate Purchase/Construction and FF&E with 10+ year life Two loans made in partnership with bank and a Certified Development Corporation (CDC) Typically a 50 / 40 / 10 Loan; Bank 50% 1 st lien & CDC 2 nd lien Borrower Equity typically 10% (additional 5% for special purpose property, additional 5% for start up) Typical Maximum of $5 million on CDC loan, resulting in typical maximum project size of $12.5 million Bank can loan more than 50% of project for larger projects Cannot include inventory or working capital (can be financed through companion 7(a) loan 3

4 504 Terms and Fees 1st lien note terms and rate determined by lender minimum term of 10 years for real estate and 7 years for equipment 2 nd lien CDC/SBA note 20 year fixed rate note for real estate and 10 year fixed rate note for equipment Prepayment fee 2 nd lien note declining fee for half of note term Fee on first lien note determined by lender Fee on second lien note is approximately 2.25% of note amount and is added to the note SBA Express Loans Similar to 7(a) program but greater flexibility Program maximum total loan amount of $350,000 Loans can be term loans or lines of credit SBA typically guarantees 50% rather than 75% so guarantee fee is lower Banks can use their closing documents rather than SBA documents Working Capital CapLine Loans Revolving line of credit for working capital Maximum loan amount of $5,000,000 Typically one year renewable notes up to 10 year total Typically made against a borrowing base of accounts receivable inventory 80% of eligible receivables and 50% of inventory Typically monitored monthly Fees consistent with 7(a) program Rates may be variable or fixed Typically consistent with conventional asset based lines of credit 4

5 USDA Loan Program Financing for businesses located in rural areas Rural area is defined as any area not within the boundaries of a city or town with more than 50,000 inhabitants and the urbanized area contiguous and adjacent to such, as defined by the U.S. Bureau of the Census using the latest decennial census of the U.S. Eligibility Map at Business does not have to be a small business Business can be profit or non profit Passive and investment businesses are eligible (ex. Apartments) Collateral must typically be sufficient to secure loan USDA Program Benefits Terms up to 30 years for Real Estate Use No Balloon Payments Large loan size up to $10 million in a single loan and multiple loans can be made for same project to loan more than $10 million Flexible personal guaranty requirements (may be limited rather than full) Low equity requirements minimum 10% tangible balance sheet equity for existing businesses and 20% for new businesses Types of SBA Lenders Preferred (PLP)or Non Preferred PLP Lenders have the authority to approve loans on behalf of the SBA Every SBA lender must follow SBA requirements but lenders may have their own additional requirements and types of SBA loans and terms offered vary by lender Large banks typically have segregated SBA departments that do not work with conventional loan officers. SBA departments at smaller banks may work in partnership with conventional lenders to structure financing packages that may include a combination of SBA and conventional loans to meet the needs of borrowers. 5

6 Combination Loan Example #1 Borrower: Manufacturing company that had acquired another business under an inventory consignment agreement and lease of real estate and equipment 18 months prior to loan request. As part of acquisition, seller provided $1.5 million LOC with a borrowing base of inventory and A/R Financing Request: Borrower wanted to exercise purchase option on real estate and equipment for $1 million, $500,000 was needed for building improvements, possible need for additional equipment purchase, possible refinancing of seller line of credit (1) $1.4 million 504 loan for real estate acquisition and improvements ( 90 percent financing with 10% borrower down payment) (2) $1,800,000 SBA 7(a) 10 year term loan to pay off seller line of credit and purchase new equipment ( no cash down from borrower) (3) $1,000,000 conventional line of credit to provide new funds for A/R and inventory financing Combination Loan Example #2 Borrower: Furniture design business/showroom and art framing business. Borrower had acquired business out of bankruptcy three years prior to loan request and had leased building with a purchase option. Company had little balance sheet equity but considerable value in inventory acquired at a discount. Borrower had made $1,000,000 in leasehold improvements to building. Financing Request: $5.5 million for building acquisition and a line of credit to allow borrower to accept large corporate jobs. Borrower had an offer from a large bank of a $5 million SBA 7(a)a term loan for building acquisition (maximum 7(a) loan size) with no line of credit offer. (1) $5.5 million for building acquisition in the form of 2 pari passu loans $4.3 million SBA 7(a) loan and $1.2 million conventional loan loans share the collateral with a pro rata first lien position (2) $700,000 SBA CAPLine line of credit secured by inventory Combination Loan Example #3 Borrower: 30 yr old service company providing maintenance services to office buildings. Agreement to buy out 50% partner for $8 million. Business value mostly intangible and based on cash flow. Financing Request: $6 million in financing: $5 million for partner buyout, $500,000 for refinancing of existing business debt, $500,000 in the form of a new line of credit. The seller would carry a note for $3 million. Loan officer proposed conventional financing in the form of a $5.5 million 5 yr term loan and a $500,000 line of credit. The chief credit officer reviewed the proposal and due to the lack of collateral suggested SBA financing. (1) $5 million 7(a) 7 to 10 year term loan for partner buy out (2) $1,000,000 conventional line of credit with $500,000 used for debt refinancing and $500,000 in new funds ( secured by first lien on A/R) 6

7 Combination Loan Example #4 Borrower: Manufacturing and service company providing water treatment systems and services to schools, hospitals, office buildings. Existing bank customer with $2 million LOC that was fully advanced and not revolving. The lack of availability on LOC was restricting company growth. Financing Request: Company needed additional line of credit availability to finance growth. LOC had been utilized for permanent working capital rather than for just short term financing of A/R and inventory. The company had no term debt. The borrower asked the loan officer for suggestions on financing options. (1) $1,500,000 7(a) 10 yr term loan to pay down line of credit, leaving $500,000 balance on LOC (2) Existing LOC modified and reduced to $1,500,000, resulting in $1,000,000 in additional availability (LOC retained a first lien on A/R and inventory and SBA loan secured by FF&E with minimal value and second lien on A/R and inventory subject to conventional LOC) USDA Loan Examples $28 million Marina acquisition $20 million USDA guaranteed loan; Five owners each providing a limited personal guaranty of 20% of loan amount Chemical Plant $30 million USDA loan for refinancing of term debt, terming out of line of credit and financing of plant improvements; $9 million conventional line of credit for A/R and inventory financing; full personal guaranty of 100% owner $4.4 million acquisition of 3 apartments near a university $3.5 million USDA loan; No personal guaranties 7

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business

GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL and SunTrust Bank Present: How To Utilize The SBA Loan Programs To Improve Cash Flow And Grow Your Business GrowFL Webinar Series Date: March 5, 2012 Presented by: Hetal Engineer, SunTrust VP hetal.engineer@suntrust.com

More information

Credit Connections Leveraging Resources to Strengthen Deals. U.S. Small Business Administration

Credit Connections Leveraging Resources to Strengthen Deals. U.S. Small Business Administration Credit Connections Leveraging Resources to Strengthen Deals U.S. Small Business Administration 1 Lenders Benefits of SBA Loans SBA s Guaranty reduces a Lender s Risk Helps lenders make loans with longer

More information

W i n t r u s t B a n k

W i n t r u s t B a n k W i n t r u s t B a n k 1 WHO ARE WE Wintrust Financial is a financial services holding company We provide traditional community banking services, commercial banking, wealth management, commercial insurance

More information

SBA L SBA endi ding Program Overview

SBA L SBA endi ding Program Overview SBA Lending Program Overview SBA Loans The U.S. Small Business Administration (SBA) offers numerous loan programs to assist small businesses. The SBA is primarily a guarantor of loans made by banks and

More information

SunTrust Your SBA Lending Partner

SunTrust Your SBA Lending Partner SunTrust Your SBA Lending Partner Presented by: Eric Hicklin All credit subject to SBA and SunTrust criteria. 2009 SunTrust Banks, Inc. SunTrust is a federally registered service mark of SunTrust Banks,

More information

Graduate School of Colorado SBA lending Presentation

Graduate School of Colorado SBA lending Presentation Graduate School of Colorado SBA lending Presentation SBA lending course summary The course will provide an overview and comparison of SBA 7a, SBA 504 and USDA Business & Industry (B&I) loan programs. SBA

More information

August 16, 2011. CBNA Commercial Banking SBA Loan Programs

August 16, 2011. CBNA Commercial Banking SBA Loan Programs August 16, 2011 CBNA Commercial Banking SBA Loan Programs Table of Contents Topics Pages What is the SBA? 2 Program Benefits 3-4 SBA 7A Loan 5-7 SBA 504 8-11 Application Requirements 12 SBA Loan Process

More information

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help

GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL and SunTrust Bank Present: Business Acquisitions and Partner Buyouts How SBA Loans can be leveraged to help GrowFL Webinar Series Date: September 4, 2012 Presented by: Hetal Engineer, SunTrust VP

More information

USDA Rural Development Business Programs

USDA Rural Development Business Programs USDA Rural Development Business Programs Business Programs Business & Industry Guaranteed Loans Revolving Loan Fund Programs Energy Programs (REAP) Rural Business Development Grant (RBDG) Eligible Locations

More information

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS February 14, 2012 Terrence K. McHugh President Commercial Alliance 1 Business Lending in Credit Unions 1998 regulation limits business lending in

More information

SBA 504 Loan Program FACT SHEET

SBA 504 Loan Program FACT SHEET SBA 504 Loan Program FACT SHEET The Oakland County Business Finance Corporation (OCBFC) was certified under the Small Business Administration's (SBA) Certified Development Company program in September

More information

Small Business Programs and Resources

Small Business Programs and Resources Small Business Programs and Resources Start-Up Business Weak Collateral Longer Repayment Terms Unfamiliar Industry Achieve community economic development through job creation and retention by providing

More information

SBA Lending. MCUL Lending Conference. What does a guaranty mean to you?

SBA Lending. MCUL Lending Conference. What does a guaranty mean to you? SBA Lending MCUL Lending Conference What does a guaranty mean to you? What will be covered Benefits of SBA SBA Loan Programs 7(a) Lending Parameters Determining Eligibility Credit Considerations Use of

More information

NAVIGATING TODAY S CREDIT JUNGLE ALTERNATIVES

NAVIGATING TODAY S CREDIT JUNGLE ALTERNATIVES NAVIGATING TODAY S CREDIT JUNGLE AN OVERVIEW OF SBA FINANCING ALTERNATIVES November, 2011 Timothy D. Dixon Head of Small Business Administration (W) 216-514-5431 timothy.dixon@citizensbanking.com 1 Discussion

More information

SBA 504 Non Bank Business Model. Presented by Sok Cordell

SBA 504 Non Bank Business Model. Presented by Sok Cordell SBA 504 Non Bank Business Model Presented by Sok Cordell CH Capital Partners LLC (SBA Non Bank Lending Program) The information contained in this presentation has been obtained from sources believed to

More information

Debt Refinancing Under the 7(a) Program. Lynn G. Ozer Executive Vice President Government Guaranteed Lending

Debt Refinancing Under the 7(a) Program. Lynn G. Ozer Executive Vice President Government Guaranteed Lending Debt Refinancing Under the 7(a) Program Lynn G. Ozer Executive Vice President Government Guaranteed Lending Debt Refinancing SBA-guaranteed loan proceeds may not be used to refinance debt originally used

More information

Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates

Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates Entrepreneur Academy: SBA 504 & 7(a) Loan Programs & Updates Wendy J. Jeffers Sr. Lending Officer: SBA Programs wjeffers@sbacsav.com Mobile: 912.398.3090 or 888.287.2137 In full operation since September

More information

Financing Downtown Businesses

Financing Downtown Businesses Financing Downtown Businesses Presented by: David Kircher 1 Wisconsin Business Development Finance Corporation Certified Development Company Authorized to work with SBA 504 Program Fixed Asset Financing

More information

2030 Districts. Project. Financing. Tookit. Small Business Association. Financing

2030 Districts. Project. Financing. Tookit. Small Business Association. Financing 2030 Districts Project Financing Tookit Small Business Association Financing Project Financing Toolkit Small Business Association Financing (SBA) The Small Business Association s (SBA) core programs offer

More information

A Guide to Federal, State and Regional Loan and Grant Programs for Agribusiness

A Guide to Federal, State and Regional Loan and Grant Programs for Agribusiness Illinois Office of Associate Director April 2004 Environmental 1021 North Grand Avenue East Protection Agency Springfield, IL 62706 Governor Rod Blagojevich Director Renee Cipriano A Guide to Federal,

More information

Overview of SBA Loan Programs

Overview of SBA Loan Programs Overview of SBA Loan Programs U.S. Small Business Administration San Francisco District Office 455 Market Street, Suite 600 San Francisco, CA 94105 (415)744-6820 SBA Loan Programs The Big 3 SBA Microloan

More information

www.development.ohio.gov

www.development.ohio.gov Minority Business Development Division Joseph Brooks (614) 466-5065 joseph.brooks@development.ohio.gov www.development.ohio.gov The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

More information

SBA 504 Loan Program Lender s Guide

SBA 504 Loan Program Lender s Guide Eligible Use of Proceeds: Land acquisition and improvements New construction Purchase of existing building(s) Renovations to existing building(s) Purchase of Machinery and Equipment (minimum of 10 years

More information

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW

SCORE. Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW SCORE Counselors to America s Small Business SMALL BUSINESS START-UP FINANCING OVERVIEW One key to a successful business start-up and expansion is your ability to obtain and secure appropriate financing.

More information

Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio.

Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio. Minority Business Development Division Allen McConnell, Manger (614) 752-4833 Allen.McConnell@development.ohio.gov www.development.ohio.gov The State of Ohio is an Equal Opportunity Employer and Provider

More information

USDA Business & Industry (B&I) Guaranteed Loan Program

USDA Business & Industry (B&I) Guaranteed Loan Program USDA Business & Industry (B&I) Guaranteed Loan Program B&I Program To Create And Maintain Employment And Improve Economic And Environmental Climate In Rural Communities Administered By The Rural Business

More information

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing

The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing Commercial Lenders The FFCFC 504 Loan Program: A Unique Alternative for Small Business Fixed Asset Financing The FFCFC 504 Loan Program is designed to help small business owners expand through the purchase

More information

Business. Loan Processing

Business. Loan Processing Business Loan Processing Business and Industry Guaranteed Loan Program USDA Rural Business-Cooperative Service www.rurdev.usda.gov/rbs Business and Industry Guaranteed Loan Program Improve, develop, or

More information

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #:

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #: LOAN APPLICATION Name of Business (Legal Name): Business Phone: Federal Tax ID #: Fax: Principals Name: Phone: Social Security #: Type of Business Sole Proprietorship Corporation Partnership Date Established

More information

504 Loan Program. First Mortgage Lender Training

504 Loan Program. First Mortgage Lender Training 504 Loan Program First Mortgage Lender Training SBA programs are suited to businesses in various stages of development S T A R T U P Access to Capital 7a SCORE SBDC Management Assistant Programs Incentive

More information

ILLINOIS BUSINESS FINANCING MATRIX

ILLINOIS BUSINESS FINANCING MATRIX A Guide of Federal, State and Regional Loan Incentive and Grant s for Business and Economic TERM RATE FEES 7(a) Loan Guaranty The s primary loan program Business start ups or expansion; construction of

More information

Understanding Loans and Other Programs Available for Certified Minority Business Enterprises

Understanding Loans and Other Programs Available for Certified Minority Business Enterprises Understanding Loans and Other Programs Available for Certified Minority Business Enterprises Presented by Allen McConnell, Manager Minority Business Development Division Slide 1 Access to Financial Assistance

More information

LYON RURAL ELECTRIC COOPERATIVE ECONOMIC DEVELOPMENT REVOLVING LOAN FUND APPLICATION. Name of Business: Address: City: Business contact person:

LYON RURAL ELECTRIC COOPERATIVE ECONOMIC DEVELOPMENT REVOLVING LOAN FUND APPLICATION. Name of Business: Address: City: Business contact person: LYON RURAL ELECTRIC COOPERATIVE ECONOMIC DEVELOPMENT REVOLVING LOAN FUND APPLICATION I. BASIC INFORMATION Name of Business: Address: City: Business contact person: Social Security #: Zip Code: (if business

More information

Business and Industry Guaranteed Loan

Business and Industry Guaranteed Loan Business and Industry Guaranteed Loan The B & I Guaranteed Program is Lender- Driven: The USDA guarantees the loan rather than lending directly. A commercial lender requests the B & I Guarantee, and if

More information

APPLICATION FORMAT SOUTHEAST MISSOURI REGIONAL PLANNING AND ECONOMICAL DEVELOPMENT COMMISSION REVOLVING LOAN FUND PROGRAM

APPLICATION FORMAT SOUTHEAST MISSOURI REGIONAL PLANNING AND ECONOMICAL DEVELOPMENT COMMISSION REVOLVING LOAN FUND PROGRAM APPLICATION FORMAT SOUTHEAST MISSOURI REGIONAL PLANNING AND ECONOMICAL DEVELOPMENT COMMISSION REVOLVING LOAN FUND PROGRAM SECTION 1 Loan Application. SECTION 2 Information on business to be assisted-past

More information

Government Guaranteed Business Lending

Government Guaranteed Business Lending Government Guaranteed Business Lending Ideally suited to the mission of CU s to satisfy their members business loan needs Herb White, VP of Lending, Hudson Valley FCU Margaret Gilbert, Managing Director,

More information

An Introduction to the SBA 7(a) and 504 Loan Programs

An Introduction to the SBA 7(a) and 504 Loan Programs An Introduction to the SBA 7(a) and 504 Loan Programs Edward W. Ahart, Esq. Thomas L. Hofstetter, Esq. 220 Park Avenue Florham Park, NJ 07932 (973) 539-1000 Partner at Schenck Price Smith & King, LLC in

More information

SMALL BUSINESS JOBS ACT:

SMALL BUSINESS JOBS ACT: SMALL BUSINESS JOBS ACT: HIGHER MAXIMUM LOAN SIZES, REVISED SIZE STANDARDS What advantages does the Small Business Jobs Act bring to companies in Alabama? SBA Express: SBA Express loan limits have been

More information

ILLINOIS BUSINESS FINANCING MATRIX. A Guide for Federal, State and Regional Loan Incentive and Grant Programs for Business and Economic Development

ILLINOIS BUSINESS FINANCING MATRIX. A Guide for Federal, State and Regional Loan Incentive and Grant Programs for Business and Economic Development A Guide for Federal, State and Regional Loan Incentive and Grant s for Business and Economic PROGRAM TERM RATE FEES 7(a) Loan Guaranty The s primary loan program Business start ups or expansion; construction

More information

BUSINESS AND INDUSTRY (B&I) LOAN GUARANTEE

BUSINESS AND INDUSTRY (B&I) LOAN GUARANTEE Rural Development Business & Cooperative Programs www.rurdev.usda.gov/ma Southern New England State Office 451 West Street, Suite 2 Amherst, MA 01002 Phone: 413-253-4300 Fax: 413-253-4347 Norwich Area

More information

CDA BLF LOAN APPLICATION

CDA BLF LOAN APPLICATION CDA BLF LOAN APPLICATION Name of of Business (Legal Name): Address: City, State, Zip: Business Phone // Fax: Federal Tax ID#: Principals Principal 1 Principal 2 Name: Address: City, State, Zip: Phone:

More information

U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals. ACEEE May 12, 2014

U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals. ACEEE May 12, 2014 U.S. Small Business Administration 504 Loan Program Energy Public Policy Goals ACEEE May 12, 2014 1 What is the 504 Loan Program? The SBA 504 Loan program is a powerful economic development loan program

More information

U.S. SMALL BUSINESS ADMINISTRATION. Craig Jordan. Lead Lender Relations Specialist

U.S. SMALL BUSINESS ADMINISTRATION. Craig Jordan. Lead Lender Relations Specialist U.S. SMALL BUSINESS ADMINISTRATION Craig Jordan Lead Lender Relations Specialist James Pipper International Trade Officer GUARANTEED LENDING PROGRAMS UPDATE U.S. Government Export Financing Programs How

More information

LENDERS SUMMARY OF 504 RULES

LENDERS SUMMARY OF 504 RULES LENDERS SUMMARY OF 504 RULES Eligibility applies to Nine areas 1. Size 2. Credit Not Available Elsewhere 3. Personal Resources of the Borrower 4. Use of Proceeds 5. Types of Businesses 6. Job Criteria(Economic

More information

SBA Finance Options. Fourth National Rural Grocery Summit June 9 10, 2014

SBA Finance Options. Fourth National Rural Grocery Summit June 9 10, 2014 SBA Finance Options Fourth National Rural Grocery Summit June 9 10, 2014 SBA What it is/what it does Federal government agency created in 1953 Purpose to help potential and existing small businesses start,

More information

USDA RURAL DEVELOPMENT. Objective. RBS Business and Industry Guaranteed Loan Program. What do we do? Who are we? RURAL DEVELOPMENT

USDA RURAL DEVELOPMENT. Objective. RBS Business and Industry Guaranteed Loan Program. What do we do? Who are we? RURAL DEVELOPMENT RURAL DEVELOPMENT Creating New Opportunities for Rural America USDA RURAL DEVELOPMENT RBS - Rural Business-Cooperative Service RHS - Rural Housing Service RUS - Rural Utilities Service Visit us at www.rurdev.usda.gov/ca

More information

SURVEY OF ECONOMIC DEVELOPMENT PROGRAMS IN MICHIGAN

SURVEY OF ECONOMIC DEVELOPMENT PROGRAMS IN MICHIGAN Citizens Research Council of Michigan SURVEY OF ECONOMIC DEVELOPMENT PROGRAMS IN MICHIGAN 2ND EDITION June 2007 Repor ort 347 CITIZENS RESEARCH COUNCIL OF MICHIGAN MAIN OFFICE 38777 West Six Mile Road,

More information

Applying for a Business Loan A Cardinal Bank Lender s View. Components of an Application Package

Applying for a Business Loan A Cardinal Bank Lender s View. Components of an Application Package Applying for a Business Loan A Cardinal Bank Lender s View By James N. Estep, AVP, Business Lending Contents Loan Interview Expectations Types of Business Loans Preferred Business Attributes Components

More information

SBA 504 Loan Program. Jobs, Communities

SBA 504 Loan Program. Jobs, Communities SBA 504 Loan Program Growing Small Businesses, Jobs, Communities What is 504? Economic Development Financing Tool Financesfixed assets for healthy, expanding businesses Low down payment to preserve cash

More information

DEBT REFINANCE APPLICATIONS. How to Avoid Screenouts 2010 NADCO

DEBT REFINANCE APPLICATIONS. How to Avoid Screenouts 2010 NADCO DEBT REFINANCE APPLICATIONS How to Avoid Screenouts 2010 NADCO Topics to be Covered Why revisit debt refinancing Amount of debt that can be refinanced Debt refinancing requirements Documentation to be

More information

Congress Heights Community Training & Development Corporation. Microloan Launch April 11, 2009 10:00am

Congress Heights Community Training & Development Corporation. Microloan Launch April 11, 2009 10:00am Congress Heights Community Training & Development Corporation Microloan Launch April 11, 2009 10:00am Today s Agenda Overview of Project Purpose Target Businesses The Microloan Program Terms Credit and

More information

Contract Financing for the Contractor

Contract Financing for the Contractor a Contract Financing for the Contractor SBA s Contract CAPLines Program A Presentation For The Contractor SBA has a Loan Guaranty Program To help Contractors Obtain Financing for Contract Work Its Called

More information

SBA 504 Loans An Important Economic Development Tool for Community Lenders

SBA 504 Loans An Important Economic Development Tool for Community Lenders SBA 504 Loans An Important Economic Development Tool for Community Lenders A vital source of financing for your business customers. 2010 NADCO Presenters today Mindy Murray RMI, Jefferson City, MO Mike

More information

SBA 7(a) Government. Guaranteed Loan Program

SBA 7(a) Government. Guaranteed Loan Program SBA 7(a) Government Guaranteed Loan Program SBA Overview The U.S. Small Business Administration (SBA) Was Created By Congress In 1953 To Assist And Counsel Small Business Growth And Prosperity, Thereby

More information

Why is SBA So Concerned About Debt Refinancing?

Why is SBA So Concerned About Debt Refinancing? welcome Why is SBA So Concerned About Debt Refinancing? Primary reason: credit elsewhere mandate in SBA s legislation No financial assistance shall be extended pursuant to this subsection if the applicant

More information

SBA Express Loan Program. www.sba.gov/for-lenders

SBA Express Loan Program. www.sba.gov/for-lenders SBA Express Loan Program SESSION WILL COVER History Lender eligibility issues Program parameters Loan processing Loan closing Practical uses Program Designed to: Increase lender participation Increase

More information

MEDC Capital Services Team. Leveraging Private Capital to Increase Lending Activity in Michigan

MEDC Capital Services Team. Leveraging Private Capital to Increase Lending Activity in Michigan MEDC Capital Services Team Leveraging Private Capital to Increase Lending Activity in Michigan MBGF Program Michigan Business Growth Fund Helping diversify and strengthen Michigan businesses Two programs,

More information

USDA RURAL DEVELOPMENT

USDA RURAL DEVELOPMENT Leroy J. Debes of U.S. Department of Agriculture - Rural Development Business and Economic Development Loans -- Loan Guarantees -- Grants LeRoy J. Debes, Area Specialist 509-924-7350 Ext. 115 leroy.debes@wa.usda.gov

More information

#1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition?

#1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition? Responses to On-Line Questions from SBA 504 Teleseminar #1 Q: How are we assured that Zion's does not share their/our portfolio information with the competition? A: We operate entirely independent from

More information

- Welcome to AdvisorLoans

- Welcome to AdvisorLoans - Welcome to AdvisorLoans AdvsorLoans provides turnkey financing solu6ons in every facet of lending, including SBA. Our expert team is well versed in SBA programs and works in this specialty daily to insure

More information

Financing Options for Your Small Business Guide

Financing Options for Your Small Business Guide Financing Options for Your Small Business Guide PROVIDED BY THE ANGELO STATE UNIVERSITY SMALL BUSINESS DEVELOPMENT CENTER Revised May 2011 This guide neither intends nor offers specific financial advice.

More information

WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM

WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM Wells County Economic Development has developed a revolving loan fund program through a grant from the United States Department

More information

ARC LOAN PROGRAM. Office of Small Business & Entrepreneurship and SBA

ARC LOAN PROGRAM. Office of Small Business & Entrepreneurship and SBA ARC LOAN PROGRAM Office of Small Business & Entrepreneurship and SBA 1 Timeline June 8 th : Regulation, Procedural Guidance and Forms Released Week of June 8 th : Lender Training June 15 th : SBA Begins

More information

SBA 101 - Introduction to SBA Lending. WPASGL 2013 Quality Circle April 11, 2013

SBA 101 - Introduction to SBA Lending. WPASGL 2013 Quality Circle April 11, 2013 SBA 101 - Introduction to SBA Lending WPASGL 2013 Quality Circle April 11, 2013 PURPOSE OF SBA FINANCIAL ASSISTANCE The purpose of SBA financial assistance is not to encourage banks to make bad loans.

More information

-SBA Financing- New Opportunities for Green Businesses & Sustainability Entrepreneurs

-SBA Financing- New Opportunities for Green Businesses & Sustainability Entrepreneurs -SBA Financing- New Opportunities for Green Businesses & Sustainability Entrepreneurs David Tiller Public Information Officer U.S. Small Business Administration-TN District Office Nashville, TN 615-736-7176

More information

AVAILABLE ASSISTANCE TO BUSINESSES

AVAILABLE ASSISTANCE TO BUSINESSES AVAILABLE ASSISTANCE TO BUSINESSES The Arlington EDA is pleased to offer local businesses access to the following incentives and information resources. TAX INCREMENT FINANCING Tax increment financing is

More information

Copyright 2015, NAGGL, Inc. - Do Not Copy/Distribute 1

Copyright 2015, NAGGL, Inc. - Do Not Copy/Distribute 1 About this PowerPoint... These slides are provided as a reference for conference attendees While the conference breakout session covers the same topics, the live presentation is a lender-to-lender discussion

More information

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst OLR RESEARCH REPORT February 19, 2013 2013-R-0054 ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS By: Michelle Kirby, Associate Analyst You asked for an analysis of state small business loan guarantee

More information

BUSINESS LOAN APPLICATION

BUSINESS LOAN APPLICATION BUSINESS LOAN APPLICATION Thank you for your decision in obtaining a commercial loan from our business service division. Please complete the following information as accurately as possible so we may better

More information

SBA Business Loan Programs

SBA Business Loan Programs SBA Business Loan Programs Horizon Certified Development Company Horizon Certified Development Company Incorporated in 1982 as Hamilton County Development Co., Inc. (HCDC) HCDC is a Certified Development

More information

he lll provide you With equipment Rick Nebraska and has goals since 1983. entrant. all your (602) 553-7814

he lll provide you With equipment Rick Nebraska and has goals since 1983. entrant. all your (602) 553-7814 Rick Berkheimer Arizonaa Bank & Trust welcomed Rick Berkheimer as Senior Vice President and Commercial Banker in March, 2010. Prior to joiningg AB&T, Berkheimer served as Market President and for Irwin

More information

SBA Guaranty Loan Options for Small Businesses

SBA Guaranty Loan Options for Small Businesses SBA Guaranty Loan Options for Small Businesses W. Lewis Burger Lender Relations Specialist Georgia District Office Atlanta, GA (404) 331-0100 Ext 304 W.Burger@SBA.gov SBA Loan Guaranties- Understanding

More information

SBA Lending - Introduction

SBA Lending - Introduction SBA Lending - Introduction Facilitated by: Jim Kahler - Texans Credit Union Dale Donnell SBA Consulting, LLC Perry Espie US Small Business Administration American Recovery and Reinvestment Act 90% guaranty

More information

WHAT IS A REAL (504) LOAN?

WHAT IS A REAL (504) LOAN? WHAT IS A REAL (504) LOAN? The Real Estate Advantage Loan (also known as a REAL or 504 Loan) is a 10% down, fixed-rate, long-term loan designed to expand capital access, filling a market gap in long-term

More information

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets. MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease

More information

Accounts Payable Accounts Receivable Amortization Annual Interest Rate Annual Percentage Rate Attorney Fees Bridge Financing

Accounts Payable Accounts Receivable Amortization Annual Interest Rate Annual Percentage Rate Attorney Fees Bridge Financing Accounts Payable Accounts payable are business debts that must be paid off within a relatively short period of time, as opposed to long term debt such as mortgage loans and equipment loans. Accounts payable

More information

Commercial Real Estate. Financing Programs. The SBA Adv. www.sba.gov/ma. www.sba.gov. Programs and services to help you start, grow and succeed

Commercial Real Estate. Financing Programs. The SBA Adv. www.sba.gov/ma. www.sba.gov. Programs and services to help you start, grow and succeed Commercial Real Estate Programs and services to help you start, grow and succeed Financing Programs The SBA Adv /ma Programs and services to help you start, grow and succeed We are the SBA History: Part

More information

Business Loan Programs

Business Loan Programs THE FINANCING DESK January-14 Business Loan Programs SBA 7(a) SBA 504 For all owner occupied Businesses For all owner occupied Businesses a) Purchase, Refinance, Rehab, Construction, Working Capital, a)

More information

LENDING GUIDELINES AND TERM SHEETS FOR:

LENDING GUIDELINES AND TERM SHEETS FOR: LENDING GUIDELINES AND TERM SHEETS FOR: THE OHIO AFFORDABLE HOUSING LOAN FUND THE OHIO PRESERVATION LOAN FUND THE OCFC PERMANENT LOAN PRODUCT For information, please contact:, 614.224.8446 (p) 614.224.8452

More information

Alternative Financing for Small Businesses - IBANYS. June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation

Alternative Financing for Small Businesses - IBANYS. June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation Alternative Financing for Small Businesses - IBANYS June, 2015 Jim Conroy, Senior Vice President New York Business Development Corporation 1 About NYBDC NYBDC was formed in 1955 and is owned by banks Approximately

More information

Wright County Enterprise Loan Fund Policies and Procedures

Wright County Enterprise Loan Fund Policies and Procedures Wright County Enterprise Loan Fund Policies and Procedures Established 1993 Revised December 1998 Revised December 2002 Revised in 2004 & approved by commissioners January 2005 1 I. OVERVIEW The purpose

More information

LISC Small Business Loan Fund

LISC Small Business Loan Fund LISC Small Business Loan Fund P R E S E N T E D BY: K EN ROSENTHAL CDC S M A L L B U S I N E S S F I NA N C E Kevin Boes LISC N e w M a r ke t s S u p p o r t C o m p a ny LISC Small Business Loan Fund

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

CITY OF MONTGOMERY REVOLVING LOAN FUND APPLICATION. Name of Business: Address: City: Zip Code: Business Contact Person: Telephone Number:

CITY OF MONTGOMERY REVOLVING LOAN FUND APPLICATION. Name of Business: Address: City: Zip Code: Business Contact Person: Telephone Number: I. GENERAL INFORMATION Name of Business: Address: City: Zip Code: Business Contact Person: Telephone Number: Social Security: Other contacts or application assistance providers: Telephone: Type of Business:

More information

The SBA 504 Loan Program. Financing the Owner Occupied Property

The SBA 504 Loan Program. Financing the Owner Occupied Property The SBA 504 Loan Program Financing the Owner Occupied Property SBA 504 Overview PURPOSE: provide FIXED RATE, long-term, below- market,, subordinated financing to owner- occupied small businesses promote

More information

Commercial Real Estate Comparison Pricing Summary

Commercial Real Estate Comparison Pricing Summary Wells Fargo Bank, N.A. Small Business Administration Lending Commercial Real Estate Comparison Pricing Summary Prepared For: Darrin Boyd Property Address: 6809 Corporate Drive Indianpolis, IN As of Date:

More information

Rural Business Enterprise Loan Program (RBE)

Rural Business Enterprise Loan Program (RBE) Courthouse PO Box 607 Carlton, MN 55718 Rural Business Enterprise Loan Program (RBE) Mailing Address: Carlton County Economic Development Office PO Box 607 Carlton, MN 55718 (218) 384-9597 or (218)384-9564

More information

U.S. Small Business Administration. Programs and Services

U.S. Small Business Administration. Programs and Services U.S. Small Business Administration Programs and Services U.S. Small Business Administration Established in 1953 Independent federal government agency District and branch offices nationwide Website: www.sba.gov

More information

Working Capital and Contract Caplines Program. Caplines 2.0: New and Improved

Working Capital and Contract Caplines Program. Caplines 2.0: New and Improved Working Capital and Contract Caplines Program Caplines 2.0: New and Improved Topics for Today s Discussion Structural Changes Key Features for Working Capital Caplines Key Features for Contract Caplines

More information

SBA ONE. SBA ONE Processing Methods. Effective January 1, 2014. SOP 50 10 5(F) - Application Changes. Standard 7(a) Guaranty, CLP & PLP

SBA ONE. SBA ONE Processing Methods. Effective January 1, 2014. SOP 50 10 5(F) - Application Changes. Standard 7(a) Guaranty, CLP & PLP SBA ONE Effective January 1, 2014 SOP 50 10 5(F) - Application Changes 1 SBA ONE Processing Methods Standard 7(a) Guaranty, CLP & PLP Small Loans up to and including $350,000 (All Processed Like Small

More information

SBA Programs to Help You Start & Grow Your Small Business

SBA Programs to Help You Start & Grow Your Small Business SBA Programs to Help You Start & Grow Your Small Business U.S. Small Business Administration 6501 Sylvan Road, Suite 100 Citrus Heights, CA 95610 916-735-1700 www.sba.gov 08?11 BUSINESS LOANS & THE SBA

More information

Q&A for Small Business Owners

Q&A for Small Business Owners Q&A for Small Business Owners What did the Obama Administration announce today? The Treasury Department will commit up to $15 billion to help unlock the secondary markets for small business loans. By purchasing

More information

Rural Development. Interagency Lender Training September 2014

Rural Development. Interagency Lender Training September 2014 Rural Development Interagency Lender Training September 2014 Business and Industry Guaranteed Loan The B & I Guaranteed Program is Lender- Driven: The USDA guarantees the loan rather than lending directly.

More information

Revolving Loan Fund for Industrial Development Summary *

Revolving Loan Fund for Industrial Development Summary * Owatonna Economic Development Authority (EDA) City of Owatonna Revolving Loan Fund for Industrial Development Summary * Program Purpose: How It Works: Project Eligibility: Minimum Requirements: Use of

More information

Financial support at the Speed of Business

Financial support at the Speed of Business Commercial Business and Real Estate Consultants Financial support at the Speed of Business SBA 504 LOAN PROGRAM For smarter Commercial Financing of: Real Estate Buildings Mix use properties Machinery Equipment

More information

U.S. Small Business Administration Programs & Services. Frank Alvarado, Sr. Area Manager Tanisha Velasquez, LRS/AO SBA Connecticut District Office

U.S. Small Business Administration Programs & Services. Frank Alvarado, Sr. Area Manager Tanisha Velasquez, LRS/AO SBA Connecticut District Office U.S. Small Business Administration Programs & Services Frank Alvarado, Sr. Area Manager Tanisha Velasquez, LRS/AO SBA Connecticut District Office The SBA Mission Economic Development Maintenance of a Strong

More information

LOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS

LOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS LOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS FRESNO SERVICING CENTER 2719 N. AIR FRESNO DR., STE 107 FRESNO, CA 93727 (559) 487-5650 LITTLE ROCK SERVICING CENTER 2120 RIVERFRONT

More information

Swift County Loan Program Guidelines and Application

Swift County Loan Program Guidelines and Application Swift County Rural Development Authority 1228 Atlantic Ave Benson MN 56215 Swift County Loan Program Guidelines and Application Swift County RDA 1228 Atlantic Ave Benson MN 56215 320-842-4769 rda@co.swift.mn.us

More information

SBA assists small businesses in three main areas: CAPITAL through our loan programs

SBA assists small businesses in three main areas: CAPITAL through our loan programs SBA assists small businesses in three main areas: CAPITAL through our loan programs CONTRACTS through government contracting certification and business development programs COUNSELING/TRAINING through

More information

GROWING. FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL

GROWING. FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL GROWING FINANCIAL PARTNERSHIPS Discover the Difference with DLC Expert Financial Loan Programs Provided through EQUIS CAPITAL FINANCE COMMERCIAL Acquisition Term Bridge Permanent Short Term Mezzanine Acquisition

More information