Which SBA loan is right for your business?
As a Preferred Lender with the U.S. Small Business Administration, we work with a variety of SBA loan programs to help lift and strengthen businesses. If you need a little help understanding the options, here are some of the most popular programs:
7(a) Loan Program. This versatile program is designed to help entrepreneurs who need working capital. It also can be used to purchase or refinance equipment, purchase or refinance owner-occupied commercial real estate, make leasehold improvements, consolidate business debt, finance a business acquisition or start a business. Typically, these loans have a term of 5 to 25 years. Maximum loan amount is $5 million.
504 Loan Program. Another popular SBA program, the 504 is designed to provide long-term, fixed-rate financing for small businesses that are buying, constructing or refinancing owner-occupied commercial real estate. This loan program also can be used to acquire long-life fixed assets for expansion or modernization of existing commercial real estate. Typically, these loans are structured with First Utah Bank covering 50 percent of the total project costs, with the borrower covering 10 percent of the total project costs and the SBA covering the remaining 40 percent of the total project costs. Projects larger than those allowed by the SBA 7(a) Loan Program may be accommodated through this program.
SBA Express. This program is typically used for business lines of credit but may also be used for term loans under some circumstances. Maximum loan amount is $350,000. These loans are perfect for start-up companies that need a little extra working capital.
SBA Export Express. This program provides either loans or revolving lines of credit up to $500,000. Loan proceeds may be used for business purposes that will enhance a company’s export development and activities.
Working Capital CAPLine Program. This program is designed to help established small to mid-sized businesses meet their short-term and cyclical working capital needs in the form of a line of credit up to $5 million.
Questions? Let us help you understand all of your commercial lending options.