SBA Loans
SBA financing provides some of the best financing terms for small businesses. An outline of basic eligibility criteria and a general description of the two main SBA programs (7A & 504) appears below:
Basic Eligibility for SBA Programs
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Must be a for profit business located in the United States
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Must be at least 51% owned and controlled by persons who are U.S. citizens or permanent residents.
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Must be classified as a small business under SBA guidelines.
The SBA 7A Program
An SBA 7A loan offers rates that are tied to the Prime Rate and terms of 10-years (25 if real estate is involved). These loans can be used for any of the following purposes:
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Debt consolidation
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Business acquisition/partner buyout
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Working capital including inventory and supplies
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Real estate acquisition/renovation---must be occupied by the business.
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Franchise startup
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Leasehold improvements
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Mixed-use -- will qualify for 25-year term if at least 51% real estate-based
The SBA 504 Program
An SBA 504 loan offers rates tied to Treasury Rates and terms of 25-years. These loans can be used for any of the following purposes:
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Land and building acquisition (should be owner occupied with limited exceptions).
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Construction and building renovation
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Purchase of machinery and equipment
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Debt refinance related to real estate or equipment
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Professional fees, furniture and fixtures, and other project expenses
Why Use Allen Capital Funding for your SBA?
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Half the battle with getting an SBA loan approved is submitting it to a lender that has a track record of documented interest in the type of loan being requested. ACF understands each lender’s credit box and will only submit where you have the best possibility for approval.
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ACF assists with the supporting documentation that frames the merits of your application and also works hard to show how any deficiencies in your application can be mitigated.
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In the event of a denial with one lender, ACF gets feedback from that lender, regroups and endeavors to submit elsewhere.
