SBA Loan Options
CB&T offers both the SBA 7(a) and SBA 504 Loan programs. With up to 90% financing, low interest rates and terms up to 25 years, the SBA 504 Loan can help business owners purchase or build a facility while preserving more capital. It’s ideal for companies that are expanding or opening a second location. In general, SBA 7(a) loan proceeds can be used to purchase, construct, expand or convert industrial and commercial buildings. With maximum loan amounts up to $2 million, these loans offer extended terms up to 25 years and below-market interest rates.
To learn more about these loans, refer to the chart below. You can also contact a CB&T SBA Specialist to discuss our SBA loan options.
Use |
Loan Amounts |
Terms |
Interest Rates |
Eligibility |
General Underwriting Criteria |
Fees |
Benefits
Use
SBA 7(a) Loan | SBA 504 Loan |
|---|
| Commercial real estate purchase, construction, improvements | Commercial real estate purchase, construction, improvements |
Occupancy requirements - 51% Existing building
- 60% Initially for new building construction
| Occupancy requirements - 51% Existing building
- 60% Initially for new building construction
|
| Debt refinance | |
| Leasehold improvements | |
| Equipment purchases | |
| Business expansion | |
| Business acquisition/start-up | |
| Working capital | |
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Loan Amounts
SBA 7(a) Loan | SBA 504 Loan |
|---|
| Up to $2,000,000 | Up to $5,000,000 |
| Commercial real estate purchase, construction, improvements | Higher loan amounts considered on a case by case basis |
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Terms
SBA 7(a) Loan | SBA 504 Loan |
|---|
| Up to 25 years amortization | Up to 25 years amortization |
| Up to 90% financing on general purpose real estate | Up to 90% financing on general purpose real estate |
| Up to 85% financing on special purpose real estate and construction | Up to 85% financing on special purpose real estate and construction |
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Interest Rates
| SBA 7(a) Loan | SBA 504 Loan |
|---|
| Fixed or adjustable rates | Fixed or variable rates |
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Eligibility
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General Underwriting Criteria
SBA 7(a) Loan | SBA 504 Loan |
|---|
| Management expertise | Management expertise |
| Debt repayment ability, good credit | Debt repayment ability, good credit |
| Collateral - Business and/or personal assets | Well-capitalized business, record of profitability |
| Acquisition or expansion requires a minimum of 20% capital injection | Collateral - Bank up to 60% loan-to-value. CDC/SBA up to 40% loan-to-value, not to exceed 90% maximum combined financing |
| Start-up businesses require a minimum of 30% capital injection and a business plan with projections | |
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Fees
SBA 7(a) Loan | SBA 504 Loan |
|---|
| No bank points | Bank - Based on individual credit request |
| SBA fee is based on loan amount | Debenture - Fee set by CDC |
| Loan packaging fee | |
| Prepayment penalty for the first 3 years for loans with maturities of 15 years or more. | |
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Benefits
SBA 7(a) Loan | SBA 504 Loan |
|---|
| Longer maturity and amortization than conventional financing | Financing availability |
| Consideration is given for mixed collateral | Competitive interest rates |
| Loan to value is higher than conventional financing | Low down payment conserves working capital |
| Financing available for start up businesses | Fixed rates available |
| Debt coverage can be based on projected cash flow | Long-term amortization |
| May be used for refinances | |
| May be used for working capital | |
| No pre-payment penalty on loans with terms under 15 years | |
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Consumer
Equal Housing Lender | Member FDIC | Preferred SBA Lender