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Current SBA Loan Rates

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For many small-business borrowers, government-backed loans are the holy grail. SBA loan interest rates are some of the most competitive among lenders.

So keeping up on the Small Business Administration’s terms and rates is part of a smart approach to finding a business loan. The 7(a) loan is the SBA’s most popular product and offers a flexible sum of cash for a variety of uses, including managing daily operations, purchasing new products and refinancing high-interest loans. Business borrowers also find low-cost financing for land and other major purchases with SBA 504 loans.

The SBA sets interest rate guidelines for lenders, which helps keep small-business owners borrowing costs low.

Here’s a breakdown of SBA business loan terms and rates, including interest and fees.

SBA loan rates

SBA 7(A) LOAN TERMS:

  • 7(a) loans do not have a minimum loan amount and max out at $5 million. The average SBA loan was around $374,000 in 2015.
  • The SBA guarantees 85% of your loan if it’s less than $150,000 and 75% if it’s more than $150,000. However, it limits guarantees to $3.75 million.
  • SBA loans aren’t easy to qualify for. Read up on the qualifications for SBA loans to make sure they’re right for you.

SBA 7(A) INTEREST RATES:

7(A) LOANS REPAID IN LESS THAN 7 YEARS

*The prime rate, hiked on Dec. 17, 2015, is 3.5%.

Example: The maximum interest rate for an SBA loan of $25,000 or less, paid in less than seven years, is 7.75%.

But interest rates make up only part of your expenses. Your APR reflects your true cost of borrowing, including your interest rate and all fees associated with the loan.

How SBA loan rates are set. Interest rates for SBA 7(a) loans are the daily prime rate, which changes based on actions taken by the Federal Reserve, plus a lender spread. The spread is negotiated between the borrower and the lender, and can result in either fixed or variable interest rates. However, the SBA caps the maximum spread lenders can charge based on the size and maturity of the loan.

A lender providing an SBA loan may also calculate interest rates using the one-month London Interbank Offered Rate plus 3% or the SBA’s optional peg rate instead of the daily prime rate.

GUARANTY FEES

7(a) loan guaranty fees are based on the loan amount and maturity date and apply only to the guaranteed portion of the loan. Lenders are required to pay the SBA the guaranty fee, but some pass the expense on to you. However, the SBA limits the maximum amount you will be charged.

You ll pay no guaranty fee if your loan is less than $150,000. If it s more than $150,000 and matures in less than a year, you’ll see a 0.25% guaranty fee.

If your loan is for more than $150,000 and takes more than a year to mature, you’ll be charged based on a three-tier system:

  • 3% on loans of between $150,000 and $700,000
  • 3.5% on loans of between $701,000 and $1 million
  • 3.75% on loans of more than $1 million

CDC/504 loans

Business borrowers looking to buy land, buildings or major equipment with long-term, fixed-rate financing can apply for SBA 504 loans. These loans are partially funded by certified development companies, nonprofit organizations focused on community economic development. The loans require collateral, typically the assets that are being financed, as well as personal guarantees from the principal borrowers.

504/CDC SBA LOAN TERMS

  • 504 loans are available in 10- or 20-year terms: As of March 2016, 10-year term loans had an effective interest rate of 4.33% and 20-year term loans had an effective interest rate of 4.55%.
  • Fee percentages are fixed but reset every five years based on principal, often resulting in a lower payment for the borrower.
  • The minimum loan amount is $50,000; the maximum is $5.5 million.

How 504 loan rates are set: Small-business owners seeking a 504 loan are on the hook for a down payment of at least 10% of the cost of the project. A traditional lender, such as a bank, puts up 50% of the loan, and a certified development company puts up as much as 40%. The SBA guarantees 100% of the CDC portion of the loan.

SBA 504 loan terms are primarily made up of the following:

  • The Treasury bond rate: Loans with 10-year terms are priced based on the five-year Treasury bond, while loans with 20-year terms are based on the 10-year Treasury bond.
  • A guaranty fee that is paid to the SBA.
  • A servicing fee that is paid to the CDC.
  • A fee paid to the central servicing agent.

When applying, you ll be quoted an effective interest rate, which is the sum of those three fees and the Treasury bond rate. However, you ll also pay a one-time fee of 2.15% to the SBA, as well as some additional fees, meaning your total cost of borrowing (or annual percentage rate) will be slightly higher than your effective rate.

The bottom line on SBA loan rates

SBA loans give you the best interest rates, though the application process can be complicated and time-consuming. If you find yourself in need of money fast, numerous online lenders can help you get the capital you need. However, they have less favorable APRs.

Find and compare small-business loans

If SBA loans aren t the right fit, compare other small-business loans to meet your needs and goals using our tool. We gauged lender trustworthiness, market scope and user experience, among other factors, and filtered lenders by categories that include your revenue and how long you’ve been in business.

To get more information about funding options and compare them for your small business, visit NerdWallet’s small-business loans page. For free, personalized answers to questions about financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page.

This post has been updated. It was originally published Jan. 8, 2016.

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SBA Loan Rates – 504 and 7a Loan Rates #business #magazines

#sba loan rates

#

SBA 504 Loan Rate – 4.08% Effective Rate*

SBA 504 Rates for the August 2016

The 504 loan rate (effective rate) for 20 year commercial real estate loans is 4.08% * The effective rate is inclusive of all servicing fees. (Some lenders do not advertise the all inclusive rate, so you may see the rate advertised slightly lower in some areas of the country).

The 504 program consists of 2 loans:

  1. first mortgage for approx 50% of the project cost
  • 504 second mortgage guaranteed by the SBA (this is the rate referenced above).
  • SBA 7a Loan Rates

    SBA 7a rates can be either fixed or variable.

    The 25 year fixed rate is very competitive and never adjusts. These loans are available if the majority of the loan proceeds are used for commercial real estate. The underwriting can be a little tougher than for a variable rate, but this is a phenomenal opportunity to lock in great low rates for the long term if you qualify.

    Variable rates are typicallyPrime + a margin not to exceed 2.75% , The margin is set by the lender based on their cost of funds and the quality of the loan. Most lenders will offer something between Prime + 1.25% and Prime + 2.75%. 7a loans can also be based on the one month LIBOR rate.

    Please contact us at 1-800-414-5285 for more information about the possibility of a fixed rate

    10 Year Loans for Business Acquisitions

    The SBA 7a is also a great solution for business acquisitions as well as refinancing of business debt or partner buyouts and the rates can be fixed or variable for up to 10 years.

    504 Loan Rates


    First Mortgage Rates:
    Currently range from high 3% range to as much as 6.5% depending on loan size, term, property type and strength of transaction and are typically amortized for 20 to 25 years and in some cases as long as 30 years.

    First mortgage rates and terms will vary depending on the type and size of the loan with the 5 year fixed rate/25 year amortization being the most common. After the initial 5 years the loan could adjust as frequently as monthly or as infrequently as every 5 years depending on the lender.


    August 2016 504 Mortgage Rate: 4.08%*
    – fixed for 20 years.


    The combination of the 2 loans and the fact that the second mortgage is always permanently fixed make for very attractive 504 loan terms.

    SBA 504 Equipment Loans are typically 10 years and can be anywhere from .25 to 1.5% lower than commercial real estate transactions .

    SBA 504 Refinance Rates may be slightly higher and multi-purpose property rates are typically lower than single or special use properties like hotels or self storage properties.

    New Fixed Rate Option for 504 First Mortgage

    There is also a low rate SBA fixed rate option available for multi-use properties and some special use/single purpose properties for the first mortgage portion of the 504 program. The loan is fixed for the entire term of the 25 year first mortgage.


    The rates for this program are very competitive and when combined with the low rate second mortgage it makes for very attractive fully fixed long term rates.
    (The rate for the first mortgage will vary depending on loan size, prepayment penalty, etc).

    Again, this program is a true fixed rate that will never adjust . so while the rate may be higher than the 5 year fixed and other options, this loan is the better choice if you intend to own your property for the long haul.


    Please contact us for more information about this program: 1-800-414-5285

    504 Loan Payment Example

    Here is an example of loan amounts and payments for a $1.5 million transaction with 10% down and a 1st mortgage rate of 4.8%:

    Down Payment/Equity Injection. $150,000

    First Mortgage: $750,000

    Second Mortgage: $600,000

    The payments would be as follows:

    First Mortgage: $4384.43

    Second Mortgage: $3661.22

    Total of Payments. $8045.65

    The 504 offers a low monthly payment with the least cash out of pocket and it compares very favorably with most any other commercial loan program. It is available for purchase, refinance, construction or renovation of owner occupied (owner-user) commercial property.


    Please contact us at 1-800-414-5285 to find out how the SBA 504 or 7a could help your business.

    Please note: the SBA does not make loans directly and interest rates are set by the lenders who make the loans.

    * Rate includes fees to SBA, CDC and central servicing agent. (Rates change monthly).





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    SBA Business Course – Palo Alto Software #personal #business #cards

    #sba business plan

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    SBA Course

    In this webinar for the U.S. Small Business Administration, business planning expert Tim Berry helps entrepreneurs and small businesses better understand how to create a business plan.

    SBA s participation in this co-sponsorship is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity.

    All SBA programs, services and cosponsored activities are extended to the public on a nondiscriminatory basis.

    Use this form to request the certificate of completion after finishing the course.

    Reasonable arrangements for persons with disabilities will be made if requested at least two weeks in advance. You can contact our customer care team to make such a request.

    Co-sponsorship Authorization ##: 05-6010-71

    This website may contain hypertext links to information and websites created and maintained by other public and private entities. This information and these links are not owned or sponsored by the U.S. Small Business Administration and are provided for the user s convenience. The Federal Government or SBA is not responsible for the content, accuracy, relevance, timeliness or completeness of any websites or information that may be accessed from this site. Furthermore, the inclusion of such links does not constitute or imply an endorsement by the Federal Government or SBA of any organizations or company, or its opinions, products, or services. Please use caution and use your best judgment when considering a product, service or opinion offered by a linked website.

    Have issues? Our Specialist Line can help.

    Just 26.36/month

    Get into the intricacies of Business Plan Pro with one of our gurus.

    We ll serve up a heap of Business Plan help just for you. Sign up today!

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    SBA Lending › BBCN Bank #fast #business #loans

    #sba financing

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    SBA Lending

    SBA 7(a) Loans

    If you’re looking to purchase inventory, equipment and machinery, an existing business or commercial property, 7(a) loans offer the longest terms available to repay the loan.

    • Loan terms from 7 to 10 years for business purposes
    • Loan terms up to 25 years for owner-occupied commercial real estate property
    • $50,000 to $5 million in available financing
    • Quick pre-approval and decision process

    Benefits

    • SBA PLP Lender
    • Quick decision making process
    • Experience in helping small businesses succeed

    SBA 504 Loans

    Under this program, BBCN Bank provides 1st Deed financing and the Certified Development Company (CDC) provides 2nd Deed financing for commercial property purchases. What makes these loans so advantageous is that business owners only need to contribute as little as 10% equity into a project.

    • Loan terms up to 10 years with amortization schedule, from 20 to 25 years (1st Deed)/ from 20 years (2nd Deed)
    • For purchase of commercial property (51% owner occupied) or hotel/motel
    • $500,000 to $15 million in available financing
    • Up to 90% financing (90% LTV)

    Benefits

    • SBA PLP Lender
    • Quick decision making process
    • Experience in helping small businesses succeed

    SBA Express Loans

    The SBA Express program gives small business borrowers an accelerated turnaround time for SBA’s review.

    • Loan amounts up to $350,000
    • Quick pre-approval and decision process
    • Financing for a variety of business purposes
    • Ease cash flow with extended repayment terms

    Benefits

    • SBA PLP Lender
    • Quick decision making process
    • Experience in helping small businesses succeed

    SBA Working Capital Program (EWCP)

    As trade financing specialists, BBCN Bank’s SBA and Commercial Lending teams can provide a better understanding of SBA’s export lending programs, and are able to guide you through the process every step of the way. The benefits of an EWCP loan include:

    • Financing for suppliers, inventory or production of export goods
    • Ideal for export working capital during long payment cycles
    • Allows exporter to extend more liberal global sales terms
    • Low fees and quick processing times

    Benefits

    • SBA PLP Lender
    • Quick decision making process
    • Experience in helping small businesses succeed

    See how BBCN Bank can make a difference for your company with an SBA loan.

    Note: PLP = Preferred Lenders Program





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    Wells Fargo is America’s top SBA lender for small businesses in 2015 #business #cards #designs

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    Wells Fargo is America’s top SBA lender for small businesses in 2015

    U.S. Small Business Administration data shows Wells Fargo approved more SBA 7(a) loan dollars and units than any other lender for 2015 federal fiscal year

    SAN FRANCISCO, Oct. 12, 2015

    Wells Fargo Company (NYSE: WFC) approved more SBA 7(a) loans and dollars for America’s small businesses than any other lender in federal fiscal year 2015 (October 2014 – September 2015), according to recently released U.S. Small Business Administration (SBA) data. During the year, Wells Fargo approved 7,254 SBA 7(a) loans totaling more than $1.9 billion nationwide – an increase of 79 percent in loans and 18 percent in dollars to small businesses compared to the same period a year ago.

    “It’s rewarding to know that every SBA loan we approve is helping more American small business owners succeed financially and grow their businesses,” said Donna Serres, head of Wells Fargo’s SBA Lending Division.

    “At Wells Fargo, we are proud of our year-over-year growth in the number of SBA loans we have extended as it shows we are meeting the credit needs of even more business owners, particularly smaller, newer businesses and diverse-owned businesses,” said Marc Bernstein, head of Wells Fargo Business Direct, which focuses on making small business loans under $100,000.

    In Orlando, Fla. one business that received an SBA 7(a) loan through Wells Fargo was The Fighter Law Firm. An active military veteran, business owner Thomas Feiter had been renting space for his law firm for several years. The SBA loan provided financing for his firm to purchase and improve an existing office building.

    “While I was deployed in the Middle East as part of my military duties, I dreamed of returning home and owning a place for my business,” said Feiter. “Working with Wells Fargo helped me realize that dream and also gave me the opportunity to complete additional improvements to the business, which has yielded greater revenues.”

    Wells Fargo is the No.1 SBA 7(a) lender in dollars in 13 states – Arizona, California, Colorado, Connecticut, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, South Carolina, South Dakota and Texas – and the No. 1 SBA 7(a) lender in number of loans (units) in 16 states – Alaska, Arizona, California, Colorado, Florida, Georgia, Minnesota, Montana, North Carolina, Nebraska, Nevada, New Mexico, South Carolina, South Dakota, Virginia and Wyoming.

    “SBA Lending is an important part of Wells Fargo’s support for small businesses because it gives us the ability to provide essential financing for small business customers who may not be able to obtain a conventional loan,” said Serres. “Whether we’re extending an SBA 7(a) loan or referring a business to a lender in the SBA’s Community Advantage Loan program, we want to do everything we can to meet the financial needs of more small businesses in every market and help them propel our economy forward.”

    Wells Fargo recently established referral relationships with more than 20 nonprofits and other lenders in cities across the country participating in the SBA’s Community Advantage program. Participants in the SBA’s program specialize in providing hands-on guidance to small businesses and offering credit to qualifying businesses in underserved markets. The referral network is one part of Wells Fargo’s four-point plan to help diverse-owned small businesses become credit-ready, access credit and achieve financial success.

    In addition to being the nation’s No. 1 SBA lender, Wells Fargo is America’s No. 1 lender to small businesses in low-and-moderate-income neighborhoods for both loans under $100,000 and under $1 million lending categories, according to the most recent Community Reinvestment Act (CRA) data (2002-2014 CRA data).

    About Wells Fargo

    Wells Fargo Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories .

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    SBA Loans #business #plan #example

    #sba loans

    #

    If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.

    To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.

    The SBA Loan Application Checklist provides a listing of forms and documents you and your lender will need to create a loan package to submit to SBA.

    The following are direct links to information about commonly requested SBA programs:

    Starting and Expanding Businesses

    Gives 7(a) loans to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs. Borrowers must apply through a participating lender institution.

    Provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

    Offers very small loans to start-up, newly established or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $50,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

    Disaster Loans

    Provide financial assistance to victims of disasters or to individuals in a declared disaster area. You may be eligible for this type of loan even if you don’t own a business.

    Assist small businesses, small agricultural cooperatives and nonprofit organizations as they recover from economic losses resulting from physical disaster or an agricultural production disaster.

    Export Assistance Loans

    Provide exporters and lenders with a streamlined method of obtaining financing for loans and lines of credit up to $500,000. Lenders use their own credit decision process and loan documentation; exporters get access to their funds faster. SBA provides an expedited eligibility review with a response in less than 24 hours.

    Offers loans targeted at businesses that are able to generate export sales but need additional working capital to support these opportunities.

    Gives term loans that are designed for businesses that plan to start/continue exporting or those that that have been adversely affected by competition from imports. The proceeds of the loan must enable the borrower to be in a better position to compete.

    Veteran and Military Community Loans

    Offers funds to eligible small businesses to meet ordinary and necessary operating expenses that could have been met, but are unable to meet, because an essential employee was “called-up” to active duty in their role as a military reservist.

    Special Purpose Loans

    Help small businesses meet their short-term and cyclical working-capital needs through the SBA umbrella program called CAPLines.

    Provides financing to eligible small businesses for the planning, design or installation of a pollution control facility.

    CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA ). To be eligible, a business must reside in a county noted as being negatively affected by NAFTA, based on job losses and the unemployment rate of the county.





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    SBA Loan Rates – 504 and 7a Loan Rates #printable #business #cards

    #sba loan rates

    #

    SBA 504 Loan Rate – 4.08% Effective Rate*

    SBA 504 Rates for the August 2016

    The 504 loan rate (effective rate) for 20 year commercial real estate loans is 4.08% * The effective rate is inclusive of all servicing fees. (Some lenders do not advertise the all inclusive rate, so you may see the rate advertised slightly lower in some areas of the country).

    The 504 program consists of 2 loans:

    1. first mortgage for approx 50% of the project cost
  • 504 second mortgage guaranteed by the SBA (this is the rate referenced above).
  • SBA 7a Loan Rates

    SBA 7a rates can be either fixed or variable.

    The 25 year fixed rate is very competitive and never adjusts. These loans are available if the majority of the loan proceeds are used for commercial real estate. The underwriting can be a little tougher than for a variable rate, but this is a phenomenal opportunity to lock in great low rates for the long term if you qualify.

    Variable rates are typicallyPrime + a margin not to exceed 2.75% , The margin is set by the lender based on their cost of funds and the quality of the loan. Most lenders will offer something between Prime + 1.25% and Prime + 2.75%. 7a loans can also be based on the one month LIBOR rate.

    Please contact us at 1-800-414-5285 for more information about the possibility of a fixed rate

    10 Year Loans for Business Acquisitions

    The SBA 7a is also a great solution for business acquisitions as well as refinancing of business debt or partner buyouts and the rates can be fixed or variable for up to 10 years.

    504 Loan Rates


    First Mortgage Rates:
    Currently range from high 3% range to as much as 6.5% depending on loan size, term, property type and strength of transaction and are typically amortized for 20 to 25 years and in some cases as long as 30 years.

    First mortgage rates and terms will vary depending on the type and size of the loan with the 5 year fixed rate/25 year amortization being the most common. After the initial 5 years the loan could adjust as frequently as monthly or as infrequently as every 5 years depending on the lender.


    August 2016 504 Mortgage Rate: 4.08%*
    – fixed for 20 years.


    The combination of the 2 loans and the fact that the second mortgage is always permanently fixed make for very attractive 504 loan terms.

    SBA 504 Equipment Loans are typically 10 years and can be anywhere from .25 to 1.5% lower than commercial real estate transactions .

    SBA 504 Refinance Rates may be slightly higher and multi-purpose property rates are typically lower than single or special use properties like hotels or self storage properties.

    New Fixed Rate Option for 504 First Mortgage

    There is also a low rate SBA fixed rate option available for multi-use properties and some special use/single purpose properties for the first mortgage portion of the 504 program. The loan is fixed for the entire term of the 25 year first mortgage.


    The rates for this program are very competitive and when combined with the low rate second mortgage it makes for very attractive fully fixed long term rates.
    (The rate for the first mortgage will vary depending on loan size, prepayment penalty, etc).

    Again, this program is a true fixed rate that will never adjust . so while the rate may be higher than the 5 year fixed and other options, this loan is the better choice if you intend to own your property for the long haul.


    Please contact us for more information about this program: 1-800-414-5285

    504 Loan Payment Example

    Here is an example of loan amounts and payments for a $1.5 million transaction with 10% down and a 1st mortgage rate of 4.8%:

    Down Payment/Equity Injection. $150,000

    First Mortgage: $750,000

    Second Mortgage: $600,000

    The payments would be as follows:

    First Mortgage: $4384.43

    Second Mortgage: $3661.22

    Total of Payments. $8045.65

    The 504 offers a low monthly payment with the least cash out of pocket and it compares very favorably with most any other commercial loan program. It is available for purchase, refinance, construction or renovation of owner occupied (owner-user) commercial property.


    Please contact us at 1-800-414-5285 to find out how the SBA 504 or 7a could help your business.

    Please note: the SBA does not make loans directly and interest rates are set by the lenders who make the loans.

    * Rate includes fees to SBA, CDC and central servicing agent. (Rates change monthly).





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    SBA Loans for Your Startup #business #acquisition #loans

    #start up business loans

    #

    SBA Loans for Your Startup

    Despite what you might see on late-night infomercials or some websites, none of the SBA s loan programs involve free money, government grants or no-interest loans. In fact, the SBA doesn t even lend funds directly to entrepreneurs–you ll need to strike up a relationship with a loan officer at your local bank, credit union or nonprofit financial intermediary to access the programs.

    But once you do, there s an array of resources aimed at getting you the capital you need to start or expand your small business. Last year, more than $50 million in SBA loans were being provided per day to U.S. small businesses. For this month s column, I thought I d review the latest descriptions and eligibility criteria for the SBA s three most popular loan programs.

    7(a) Loan Program
    The 7(a) is the SBA s most popular loan program. As a small-business owner, you can get up to $750,000 from your local 7(a) lender, backed by a partial guarantee from the SBA. Note that the SBA is not lending you any money directly. What they are doing is making it less risky for a local lender to provide you with financing. 7(a) loans are typically used for working capital, asset purchases and leasehold improvements. All the owners of a business who hold an ownership stake of 20 percent or more are required to personally guarantee the loan.

    Once your lender decides that 7(a) money is what you need, you ll probably start hearing the names of the different 7(a) programs. For example if you re borrowing less than $150,000, you may be headed toward the Lowdoc program, which was created in 1993 to reduce burdensome paperwork. A Lowdoc loan application is a one-page form; your application is on one side and the lender s request to the SBA for the guaranty for your loan is on the other. The SBA responds to Lowdoc applications within 36 hours.

    The SBA Express is a program for lenders with a good SBA-lending track record. It s aimed at getting money–in this case, as much as $250,000–quickly into the hands of entrepreneurs. Based on the success of the SBA Express program, the SBA initiated CommunityExpress, specifically designed to improve access to capital for low- and moderate-income entrepreneurs and to provide both pre- and post-loan technical assistance.

    Eligibility: The eligibility criteria for the 7(a) program are the broadest of all the SBA loan programs, but they re still quite restrictive for startups and businesses related to financial services. See this page on the SBA s website for a list of the types of business that are eligible. In general, all SBA programs are targeted at small companies (that is, businesses with less than $7 million in tangible net worth and less than $2.5 million in net income), but typically most banks won t lend to startup businesses that don t have two to three years worth of financial statements and some owner s equity in the business. Some banks will allow you to use money from relatives as part of your equity, but you re required to formalize these small business loans with a repayment plan that s subordinate to the bank debt.

    504 Loan Program
    The 504 loan program is intended to supply funds for asset purchases, such as land or equipment. Typically, the asset purchase is funded by a loan from a bank or other lender in your area, along with a second loan from a certified development company (CDC) that s funded with an SBA guarantee for up to 40 percent of the value of the asset–which is generally a loan of up to $1 million–and a contribution of 10 percent from the equity of the borrower. This financing structure helps the primary lender–the bank–reduce its exposure by relying on the CDC and the SBA to shoulder much of the risk.

    Eligibility: Like the 7(a) program, the 504 program is restricted to small businesses with less than $7 million in tangible net worth and less than $2.5 million in net income. However, since funds from 504 loans can t be used for working capital or inventory, consolidating or repaying debt, or refinancing, this program tends to exclude most service businesses that need to purchase land or equipment. Personal guarantees are also required for 504 loans.

    7(m) Microloan Program
    The Microloan program is presently under budgetary review, and the political winds aren t currently blowing in its favor. The program is intended to provide small loans of up to $35,000 that can be used for a broad range of purposes to start and grow a business. Unlike the 7(a) program, the funds to be loaned don t come from banks; rather, they come directly from the SBA (now you know why it s unpopular with the folks in charge of the budget) and are administered to business owners via nonprofit community-based intermediaries. To find the name of an intermediary micro-lender in your area, visit this page of the SBA s website.

    Eligibility: The Microloan program is startup friendly. All new businesses are eligible to apply. Although the maximum loan amount is $35,000, the average loan is approximately $10,000. The only catch is that Microloan borrowers typically have to enroll in technical assistance classes administered by the micro-lender intermediaries. For some entrepreneurs, this is a very helpful resource that provides cost-effective business training. Others, however, perceive it as a waste of time, although it s a necessary pre-condition to getting a Microloan.

    Although I promised reviews of just the three top SBA loan programs, I didn t want to fail to mention two other special purpose loan programs targeted at serving particular types of businesses. The Export Working Capital Program provides short-term working capital to small, export businesses, and the DELTA program provides both financial and technical assistance to help businesses dependent on defense installations transition to civilian markets. You can log on to the SBA s website to learn more about these two programs.

    The long and short of it is, if you need small-business loan capital, there s probably an SBA program out there for you.





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    Wells Fargo is America’s top SBA lender for small businesses in 2015 #inexpensive #business #cards

    #sba lenders

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    Wells Fargo is America’s top SBA lender for small businesses in 2015

    U.S. Small Business Administration data shows Wells Fargo approved more SBA 7(a) loan dollars and units than any other lender for 2015 federal fiscal year

    SAN FRANCISCO, Oct. 12, 2015

    Wells Fargo Company (NYSE: WFC) approved more SBA 7(a) loans and dollars for America’s small businesses than any other lender in federal fiscal year 2015 (October 2014 – September 2015), according to recently released U.S. Small Business Administration (SBA) data. During the year, Wells Fargo approved 7,254 SBA 7(a) loans totaling more than $1.9 billion nationwide – an increase of 79 percent in loans and 18 percent in dollars to small businesses compared to the same period a year ago.

    “It’s rewarding to know that every SBA loan we approve is helping more American small business owners succeed financially and grow their businesses,” said Donna Serres, head of Wells Fargo’s SBA Lending Division.

    “At Wells Fargo, we are proud of our year-over-year growth in the number of SBA loans we have extended as it shows we are meeting the credit needs of even more business owners, particularly smaller, newer businesses and diverse-owned businesses,” said Marc Bernstein, head of Wells Fargo Business Direct, which focuses on making small business loans under $100,000.

    In Orlando, Fla. one business that received an SBA 7(a) loan through Wells Fargo was The Fighter Law Firm. An active military veteran, business owner Thomas Feiter had been renting space for his law firm for several years. The SBA loan provided financing for his firm to purchase and improve an existing office building.

    “While I was deployed in the Middle East as part of my military duties, I dreamed of returning home and owning a place for my business,” said Feiter. “Working with Wells Fargo helped me realize that dream and also gave me the opportunity to complete additional improvements to the business, which has yielded greater revenues.”

    Wells Fargo is the No.1 SBA 7(a) lender in dollars in 13 states – Arizona, California, Colorado, Connecticut, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, South Carolina, South Dakota and Texas – and the No. 1 SBA 7(a) lender in number of loans (units) in 16 states – Alaska, Arizona, California, Colorado, Florida, Georgia, Minnesota, Montana, North Carolina, Nebraska, Nevada, New Mexico, South Carolina, South Dakota, Virginia and Wyoming.

    “SBA Lending is an important part of Wells Fargo’s support for small businesses because it gives us the ability to provide essential financing for small business customers who may not be able to obtain a conventional loan,” said Serres. “Whether we’re extending an SBA 7(a) loan or referring a business to a lender in the SBA’s Community Advantage Loan program, we want to do everything we can to meet the financial needs of more small businesses in every market and help them propel our economy forward.”

    Wells Fargo recently established referral relationships with more than 20 nonprofits and other lenders in cities across the country participating in the SBA’s Community Advantage program. Participants in the SBA’s program specialize in providing hands-on guidance to small businesses and offering credit to qualifying businesses in underserved markets. The referral network is one part of Wells Fargo’s four-point plan to help diverse-owned small businesses become credit-ready, access credit and achieve financial success.

    In addition to being the nation’s No. 1 SBA lender, Wells Fargo is America’s No. 1 lender to small businesses in low-and-moderate-income neighborhoods for both loans under $100,000 and under $1 million lending categories, according to the most recent Community Reinvestment Act (CRA) data (2002-2014 CRA data).

    About Wells Fargo

    Wells Fargo Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories .

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    SBA Loans – Small Business Administration Loans #selling #your #business

    #sba loans

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    Small Business Administration (SBA) Loans

    Proud to be one of the Premier SBA Lenders

    As part of our commitment to the growth of small businesses nationwide, U.S. Bank is a leading participant in the lending programs of the U.S. Small Business Administration (SBA). Since 1976, we ve provided more than $6 billion in SBA-guaranteed financing solutions to thousands of small businesses in America.

    SBA Express Loans

    SBA loans are backed by government-sponsored loan guarantees and are available to for-profit businesses in virtually every industry.

    SBA 7(a) and 504 Loans

    SBA loans provide financing for almost any business purpose, including real estate purchase, business acquisition or startup, equipment, inventory, and competitor and partner buyouts. Loan amounts from $250,000 to $11.25 million.

    Referral Network Resources

    If you re a financial or professional in commercial real estate, lending or a finance-related industry, learn how our SBA Division can assist you and your small business customers.

    What are SBA loans?

    The U.S. Small Business Administration is a federal agency committed to furthering the growth and development of small businesses. One of the ways it does this is by guaranteeing loans to small businesses made through lending partners nationwide. U.S. Bank is both an SBA Preferred Lender and one of America s most experienced SBA lenders.

    The SBA does not make loans directly to small businesses. Rather, it sets the guidelines for loans, which are made by lending partners nationwide, including banks and economic development organizations. The SBA guarantees a percentage of the loan, minimizing risk to the lending partners and increasing the possibility that small businesses will receive the funds they need.

    Does my business qualify for a Small Business Administration loan?

    Small businesses must meet certain criteria to qualify for an SBA loan, including size requirements, financial standing and being in a for-profit industry. SBA loans cannot be made to a small business if the borrower has access to other financing that offers reasonable terms. In addition, a small business must meet the credit qualifications of the lending partner.

    Advantages include lower down payments and longer repayment terms.

    Benefits of SBA loans include lower down payments and longer repayment terms than conventional bank loans, enabling small businesses to keep their cash flow for operational expenses and spend less on debt repayment.

    • Up to 90% financing
    • Loans up to $11.25 million
    • Terms up to 25 years
    • Fixed and variable rate options
    • No balloon payments
    • Most for-profit small businesses are eligible
    • SBA loans originated at U.S. Bank are serviced by U.S. Bank, ensuring personalized service

    There’s an SBA loan for almost any business need.

    U.S. Bank offers five types of SBA loans for businesses in almost any for-profit industry. Loan amounts range from $25,000 to more than $11.25 million and are available for a variety of business purposes, including:

    • Commercial real estate purchases
    • Business acquisition or expansion
    • Construction
    • Equipment, inventory or working capital
    • Debt refinancing

    Equal Housing Lender

    Subject to credit approval and program guidelines.

    Financing maximums and terms are determined by borrower qualifications and use of funds. U.S. Bank and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. For any deferred or promotional payment period, interest accrues and is amortized over the remainder of the term and outstanding balance. Deposit products offered by U.S. Bank National Association. Member FDIC.

    The 3.49% interest rate applies to new or used equipment and vehicle loans up to 100% LTV and terms up to 36 months for credit qualified applicants. Disclosed rate reflects 0.50% discount based on automatic monthly payments from a U.S. Bank Business Checking account. Standard fees apply. Advertised rate is as of 10/22/15 and is subject to change without notice based on market conditions. See a banker for details.





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