SBA 7(a) Loan Program Features

Loan Amounts 7(a) Loan Amounts Up to $5,000,000
Interest Rate Fixed and variable rates available
Term Up to 25 years, fully amortizing
Loan to Value
 Prepayment
  • Up to 100% on machinery and equipment
  • Up to 90% on business acquisitions
  • Declining 3 Years
Benefits
  • Fixed and variable rates available
  • Longer terms to maximize cash flow
  • No balloon payments or call language provide long-term safety for the borrower
  • Expert relationship managers walk you through the SBA 7(a) application process step by step to ensure your experience is hassle-free
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SBA 504 Loan Parameters

Eligible Use: Acquisition of Owner-Occupied, Hospitality, Special and Single Purpose Properties
Loan Amount: Up to $13,000,000
Loan Term: Up to 25 Years
Amortization: Up to 25 Years
Loan to Value: Up to 90% of FIRREA Appraised Value. Minimum 1.20x DSCR on in-place cash flow
DSCR: Minimum 1.20x DSCR on in-place cash flow
  Reserves: Tax and Insurance
Sponsor (s): Creditworthy individual(s) acceptable to Lender with sufficient liquidity and net worth
Borrowing Entity: Operating entity that will occupy the commercial real estate
Recourse: Full-Recourse
Assumability: Yes in case of building sale for $1000 assumption fee
Prepayment 5-Year Prepayment Penalties
Meeting Design Ideas

Green 504 Loans

The SBA Green 504 Loan has multiple benefits:

It allows for both larger SBA loans and multiple SBA loans to the same applicant(s).

The Green 504 loan is a second mortgage that can be as much as $5.5 million which makes transactions in the $12 to $20 million range possible...AND...loans are available on a "per project" basis. In other words, the "regular" SBA maximum eligibility limits of $5 million per borrower do not apply and larger businesses are able to utilize multiple 504 loans on multiple buildings.

The usual SBA 504 jobs creation/jobs retention requirements do not apply to make larger loans for businesses with fewer employees possible. This could be very useful for qualifying self-storage businesses, hotels, parking garages, and others with lots of square footage but few employees.

It also provides financing for both small and mid-size businesses to acquire, build or possibly refinance energy-efficient buildings. The larger loan sizes are more suitable to larger businesses and the recently expanded maximum tangible net worth and income requirements of $15 million and $5 million respectively make it easier for larger businesses to qualify.

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Project Financing

If you need funding for a renewable energy project or renewable energy equipment financing then please visit our project financing page.

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How To Qualify for the Green 504

The easiest way to qualify is to acquire or construct a building that uses 10% less energy than what you are currently using. It is important to remember that the 10% reduction is in energy consumption, not dollars saved on lower utility bills.

Qualifying examples assuming you currently own or lease:

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  • 1 You can qualify if you lease or own a building now and finance another building that will consume 10% less energy than the building you currently own or lease.
  • 2 You can qualify if you lease a building now and you decide to purchase it and make improvements to it that cut your energy consumption by 10%. This could be as simple as a lighting retrofit using LED lighting since lighting typically accounts for 20 to 30% of a building's energy use.
  • 3 You can also qualify if you lease or own a building now and you build a new facility that is 10% more energy efficient. Again, lighting is a great way to accomplish this, but there are numerous other means as well including better insulation, modular construction using structurally insulated panels, a better HVAC system, energy-efficient windows, etc.
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