818 Rt. 202-206 North •
Bridgewater, N.J. 08807
Telephone (908) 722-9217 • Fax (908) 722-2827
Toll Free 800-327-0123 • Email:
info@goldmortgage.com
Small Business Lending
SBA 7(A) LOAN PROGRAM OVERVIEW
When You Need A Loan, We’re Ready to Help.
We work with partners who have been designated as a Preferred Lender by the SBA which gives us the authority to make credit decisions on behalf of the US Government. This enables us to process loans more quickly and efficiently than many other SBA lenders. There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments.
Who is Eligible for an SBA Loan?
Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses.
Loan Qualifications
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_ Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
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_ Wholesale businesses with employees up to 100 regardless of sales volume
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_ Manufacturers with employees up to 500 depending on the industry, regardless of sales volume
SBA 7(A) Loan Size
$25,000 to $2.0 million
Loan Fees
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_ Loan packaging fee: $500 to $1,500
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_ Fee is based on loan size, it is collected at the time of loan submission; refunded if declined by credit
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_ SBA guaranty fee: 1.70% to 2.60% of the loan amount
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_ Fee can be financed in the loan
Use of Proceeds
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_ Commercial real estate (purchases, construction, or refinance)
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_ Leasehold improvements
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_ Business expansions
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_ Machinery, equipment, furniture or fixtures
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_ Business acquisition
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_ Working capital (offered in conjunction with some of the above)
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_ Start-Ups (Franchise, Medical Professionals, Franchise Hotels, Gas & C-Stores)
Collateral
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_ First security interest in all business assets (excluding titled vehicles)
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_ Personal assets (including residences) may be taken as collateral
Down Payments
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_ 10% of commercial real estate purchase
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_ 15% - 20% for business acquisitions
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_ 30% for business start-ups (see use of proceeds for qualified industries)
Other Credit Considerations
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_ Business must have adequate historic cash flow to cover the proposed debt
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_ Business debt to net worth must meet industry averages
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_ Borrowers must be actively involved in the day-to-day operation of the business
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_ Satisfactory personal credit histories are required for all principals and guarantors
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_ No past bankruptcies or felony arrests
Links:
For more information, please contact Ted Ark at 800-327-0123, extension 11 or email: info@goldmortgage.com