66 West Flagler Street, Miami, FL

Info@ReaganCommercialCapital.com

786-633-2990

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SBA Loans

To support small businesses that create jobs in their local communities, the SBA acts as a guarantor on loans. This encourages lenders to grant approval for larger loans with better terms than with many other financing products. Since these loans are intended specifically for small businesses, there’s no competition from large corporations.

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What is an SBA loan?

The Small Business Administration backs funding for small business loans. A number of loans are available depending on your needs. We work with a variety of lenders who are comfortable navigating the SBA approval process. You may qualify for more than one type of SBA loan and we can help you narrow down which options are your best bet.

The most popular loans...

from the Administration are SBA 504 loans and SBA 7(a) loans. To qualify for either loan, your business must operate in the United States, be for profit, have less than $15M in net worth, and make less than $5M in net income annually. Some restrictions exist for certain types of businesses. For example, casinos, banks, churches, and private clubs are not eligible for an SBA loan. Stakeholders in your business must also pass a criminal background check.

What is an SBA loan?

The Small Business Administration backs funding for small business loans. A number of loans are available depending on your needs. We work with a variety of lenders who are comfortable navigating the SBA approval process. You may qualify for more than one type of SBA loan and we can help you narrow down which options are your best bet.

The most popular loans from the Administration are SBA 504 loans and SBA 7(a) loans. To qualify for either loan, your business must operate in the United States, be for profit, have less than $15M in net worth, and make less than $5M in net income annually. Some restrictions exist for certain types of businesses. For example, casinos, banks, churches, and private clubs are not eligible for an SBA loan. Stakeholders in your business must also pass a criminal background check.

SBA 7(a) Loan

An SBA 7(a) loan is flexible and can be used for working capital as well as real estate, equipment, construction, and so on. The lending is done through a private lender or bank within our network. The maximum loan amount is $5M and the SBA regulates interest rates based on the value of U.S. Treasury bonds. Funds can be used for any legitimate business expense.

SBA 504 Loan

An SBA 504 loan can only be used for real estate, construction, equipment, and refinancing. You must go through a Certified Development Company to apply and provide 10% of the funding as a down payment. A private lender from our network provides 50% of the loan and the SBA covers the remaining 40%. Although the lender sets the interest rate, it must fall under the SBA maximum.

Advantages of SBA Loans

01

The SBA can help when other lenders have declined to finance a loan.

02

Interest rates are capped by the SBA and based on US Treasury bond values.

03

Borrowers don’t need to come up with a balloon payment at the end of the term.

04

Minority-owned and women-owned businesses are encouraged to apply.

FAQ

When is an SBA loan not a good fit?
If you have overdue payments on other federal loans, if you’re currently on parole, or if your business is a nonprofit, engaged in speculation, lending, gambling, or religious education, then your business is ineligible for an SBA loan.
Can I apply for a loan directly through the SBA?
In most cases, no. SBA 504 loans have to go through a nonprofit CDC or Certified Development Company. SBA 7(a) loans are serviced by banks and private lenders.
What if I need more than $5M?
In some circumstances, the SBA maximum can be higher than $5M. If your construction project is a sustainable building, for example, you can get up to $5.5M from the SBA. In addition, for a 504 loan this maximum amount represents only the SBA portion of the loan and does not include what the private lender provides. So the total loaned amount can actually be north of $10 million.
What are SBA loan terms?
A 504 loan matures in 10-20 years. A 7(a) loan carries a term of 5-10 years for working capital, machinery, and equipment. A 7(a) loan for real estate has a 25-year term.