About SBA Loans

Your small business financing team – an SBA preferred lender.

Call us for seasoned expertise and guidance on getting the SBA funding you need to:

  • Renovate or build new facilities
  • Purchase new equipment
  • Acquire other businesses
  • And more

As an SBA Preferred Lender, CB&T's experienced team can help you find the most competitive loan options that offer:

  • Up to 90% financing with terms up to 25 years
  • Full amortization with no balloon payments
  • Personal assistance from application through closing
  • Quick closing in as little as 60 days

As part of Zions Bancorporation, CB&T is a recognized leader in SBA 504 first mortgages in more than 100 industries. And our established relationships with Certified Development Corporations (CDC) help us get more small business loans the funding they need. Contact a CB&T SBA Loan Specialist today to learn more about SBA 7(a) and SBA 504 loans.

Choosing an SBA Loan: Understanding your options

There are two basic types of SBA loans – SBA 7(a) and SBA 504. Which loan you may qualify for depends upon how you use the funds, the size of your business, and the amount you wish to borrow.

For example, the SBA 504 loan allows you to borrow up to $10 million (or more in some cases), but funding is limited to commercial real estate purchases, construction, improvements, and the purchase of certain equipment.

An SBA 7(a) loan may be used for other purposes, including debt refinance and working capital – among other uses – but loans are limited to $5 million and more collateral may be required. Each allows for loan terms of up to 25 years and financing of up to 90% subject to certain restrictions.

To help you understand your options, here’s an overview of each type of loan. You can read about the specific requirements for an SBA 7(a) loan and SBA 504 loan. Or better yet, consult with a CB&T SBA Loan Specialist for expert advice and more details based on your specific needs

Loan Overview

 

SBA 7(a) Loan

SBA 504 Loan

Uses

Commercial real estate purchase, construction, improvements

Commercial real estate purchase, construction, improvements

Benefits

  • Longer maturity and amortization than conventional financing
  • Consideration is given for mixed collateral
  • Loan to value is higher than conventional financing
  • Financing available for start up businesses
  • Debt coverage can be based on projected cash flow
  • May be used for refinances
  • No pre-payment penalty on loans with terms under 15 years
  • Financing availability
  • Competitive interest rates
  • Low down payment conserves working capital
  • Fixed rates available
  • 25 year fully amortizing term (no balloon payment)

Occupancy requirements

  • 51% Existing building
  • 60% Initially for new building construction
  • 51% Existing building
  • 60% Initially for new building construction

Loan amounts

Up to $5,000,000

Up to $10,000,000
Higher loan amounts considered on a case by case basis

Terms

  • Up to 25 year amortization on Commercial Real Estate
  • Up to 90% financing on general purpose real estate
  • Up to 85% financing on special purpose real estate and construction
  • Financing for equipment may be based on it's economic life
  • Up to 25 year amortization
  • Up to 90% financing on general purpose real estate
  • Up to 85% financing on special purpose real estate and construction

Interest rates

Fixed or adjustable rates

Fixed or variable rates

Eligibility

SBA 7(a) – Basic Eligibility Requirements

SBA 504 Loan – Basic Eligibility Requirements

General underwriting criteria

  • Management expertise
  • Debt repayment ability, good credit
  • Collateral – Business and/or personal assets Acquisition or expansion requires a minimum of 20% capital injection
  • Start-up businesses require a minimum of 30% capital injection and a business plan with projections
  • Management expertise
  • Debt repayment ability, good credit
  • Well-capitalized business, record of profitability
  • Collateral – Bank up to 60% loan-to-value. CDC/SBA up to 40% loan-to-value, not to exceed 90% maximum combined financing

Fees

  • No bank points
  • SBA fee is based on loan amount
  • Loan packaging fee
  • Prepayment penalty for the first 3 years for loans with maturities of 15 years or more.
  • Bank – Based on individual credit request
  • Debenture – Fee set by CDC
  • No Yield Maintenance Prepayment Penalty
Note: SBA loans from California Bank & Trust are in participation with the United States Small Business Administration. Loans are subject to credit approval. Restrictions apply; contact bank for details.