SBA 7a Loan

SBA 7A Loan program is generally used by small businesses to finance owner user commercial property, equipments, working capital and Business acquisition. SBA 7A program is the most popular and most often used financing program for small businesses, which comes from section 7(a) of small business act that authorizes the SBA to lend to small businesses. City Capital Finance is a leader in structuring and providing SBA 7A loan solutions to small business owners and professionals.

Purpose of Loan

  • Establish a new business or to assist in the operation, acquisition or expansion of an existing business
  • Commercial real estate purchase
  • Special programs to finance equipment or working capital
  • Commercial real estate (purchase, construction, expansion or refinance)
  • Debt consolidation
  • Leasehold improvements
  • Machinery, equipment, furniture or fixtures
  • Business acquisitions
  • Start-ups (franchise, professional practice)
  • Working capital (offered in conjunction with certain other financing)

Size of Loan

  • Up to $2 million: maximum exposure is $1.5 million. Thus, if a business receives an SBA guaranteed loan for $2 million, the maximum guaranty to the lender will be $1.5 million or 75%

Cash Injection Requirements

  • Minimum 10% down payment, depending on collateral and type of property

Terms of Loan

  • Twenty-five (25) years for real estate and equipment; and, generally seven (7) years for working capital. Up to 10 years for franchise start-ups

Loan Fees and Rate

  • SBA Guaranty Fees ranging from 1.7% to 2.6% of loan amount depending on loan size
  • Interest rates are negotiated between the borrower and the lender; however they are subject to SBA maximums
  • Interest rates may be fixed or variable and they are Prime based.

Qualifying Requirements

  • Adequate cash flow to cover debt levels
  • Acceptable credit history (Min 600 Fico)
  • 51% Owner Occupancy required

Loan Turnaround times

  • 10 business days for Bank approval upon receipt of complete package
  • 45-60 days funding from receipt of completed application package