SBA Loan Program
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SBA Loan Program

Over the years SBA has worked hard to streamline its lending programs making them more user friendly for business owners and lenders.  The loan application process has also been re-tooled making it possible for lenders to submit many loans electronically and receive an accelerated response from SBA.  Prime Funding Partners works with multiple Preferred SBA Private Money and Non-Depository Bank Funding Sources. Because we have access to multiple sources, our clients have a better chance for lender approval.

The leading SBA lenders have designated Prime Funding Partners as a Preferred Financial Services Company allowing for faster and more efficient processing of loans.

There are advantages to an SBA loan, including longer terms, no points, and no balloon payments.

  • SBA 7(a) Loans range from $50K to $5M
  • SBA 504 Loans range from $500K up to $15M
  • Conventional loans from $100K up to $100M+

Who is Eligible for an SBA Loan?

Most for-profit small businesses are eligible for an SBA guaranteed loan. This would include manufacturers, wholesalers, retail, and service businesses as well as independent or franchise businesses. SBA does not specify what businesses are eligible. Rather, the agency outlines businesses that are not eligible.  As such, the key factors of eligibility are based on what the business does to receive its income, the character of its ownership and where the business operates.

Businesses must:

  • Operate for profit
  • Be small as defined by the SBA
  • Be engaged in, or propose to do business in, the US or its territories
  • Have reasonable invested equity
  • Use alternative financial resources, including personal assets, before seeking financial assistance
  • Be able to demonstrate a need for the loan proceeds
  • Use the funds for a sound business purpose
  • Not be delinquent on any existing debt obligations to the US Government

Loan Qualifications

  • Retail and service businesses with 3-year average sales not exceeding $6 million to $20 million, depending on the industry
  • Wholesale businesses up to one hundred employees regardless of sales volume
  • Manufacturers with employees up to five hundred depending on the industry, regardless of sales volume

Loan Fees

  • Loan packaging fee: $750 to $2,500
  • Fee is based on the loan size
  • SBA guaranty fee: 1.70% to 2.60% of the loan amount
  • Fees can be financed into the loan

Use of Proceeds

  • Commercial real estate (purchases, construction, or refinance)
  • Leasehold improvements
  • Business expansions
  • Machinery, equipment, furniture, and fixtures
  • Business acquisition
  • Working capital (offered in conjunction with the above)
  • Start-ups (ALL Franchises, Motels, Restaurants, Gas Stations and C-Stores)

Other Credits Considerations

  • Business must have adequate historic cash flow to cover the proposed debt
  • Business debt to net worth must meet industry averages
  • Borrowers must be actively involved in the day-to-day operation of the business
  • Principles and guarantors must have satisfactory personal credit histories 
  • No past bankruptcies or felony arrests

Contact us today for a free, no-obligation analysis of your financing needs.

A member of our professional staff will contact you to discuss your business’ short and long-term financial needs.