Types of Financing

SBA Loan Program

Prime Commercial Lending is a nationally recognized company helping entrepreneurs achieve their business goals. We have been designated as a Preferred Financial services company by SBA lenders to have loans processed more quickly and efficiently than many others.

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

• Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
• Wholesale businesses with employees up to 100 regardless of sales volume
• Manufacturers with employees up to 500 depending on the industry, regardless of sales volume

SBA 7(A) Loan Size $150,000 to $2.0 million

Loan Fees

• Loan packaging fee: $750 to $2,000
• Fee is based on loan size, it is collected at the time of loan submission; refunded if declined by credit
• SBA guaranty fee: 1.70% to 2.60% of the loan amount
• Fee can be financed in the loan

Use of Proceeds

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

SBA EXPRESS LOANS

Typical Use of Proceeds
Usually used for financing short term assets or working capital needs

Loan Amounts
Loans up to $350,000

Rate Structure
Rates adjust quarterly, indexed off the Wall Street Journal Prime rate.

Typical Loan Amortization
Up to 7 years, fully amortized.

SBA 504 Loan Program

Loan Purpose: Real estate and fixed asset purchase including – business acquisition, business expansion, construction, partner buyout, start-ups, turn-around, and machinery and equipment.

Program is available nationwide to a variety of industries.

The SBA 504 program is an excellent long term finance option specially designed for the purchase of long term assets such as owner-user commercial real estate or heavy machinery and equipment.

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
• Satisfactory personal credit histories are required for all principles and guarantors
• No past bankruptcies or felony arrests

Contact us today about our SBA Loan Programs and other services.