Commercial Real Estate Loans

Commercial Mortgage Broker Training

Commercial Mortgage Loans Misc

SBA Loans, SBA 7a Loan

 

Its worthwhile to note that
almost every deal we close,
has been declined by at
least 3 other SBA banks. 

 
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Closing of an SBA Loan
Howell, Michigan 
 
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7a Loan Closing, Refinance 
Office Building, Dallas Tx
 
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2009, New Build, Closed
SBA 7a, Buford, GA 

Note - major new changes to the SBA Loan program are now in place due to the Small Business Jobs Act (Bill 5297).  For example, the new maximum loan amount is now $5,000,000, up from $2,000,000.  This is a permanent change and is great news.  If you are considering an SBA 7a loan, we would like the opportunity to earn your business. We are experts at this program and work nationwide.  Please fill out our Pre Approval form to take the first step. 

This segment of the business is still viable.  If you are considering refinancing your building or purchasing a new one, the SBA 7a loan is one of the most reliable programs in the industry and again, we urge you to fill out the preapproval form now (Note our minimum loan is now $400,000).  The benefits of the SBA loans for business owners are numerous.  Up to 90% loan to value financing on purchases AND 85% financing on refinances are a few of them.



Another is that this loan has some of the most flexible underwriting guidelines available.  For example, Debt Coverage Ratio's of 1:1 are still allowed.  Most commercial mortgages, in contrast, require a miniumum debt coverage ratio's of a 1.35.  So with a 7a loan, your business can have lower cash flow and still get your loan closed.  Credit scores as low as 650 are acceptable as well (and lower with a reasonable explanation).  

commercial loan training

By Jeff Rauth, President
of Commercial Finance
Adsivors, Inc

Small Business
Lender List
The Most Active Banks in
The Nation.
Commercial Lender List
SBA Lender List



The use of the loan proceeds are another major benefit of the program.  Borrowers can use the loan to rehab or do ground up construction, refinance existing debt (which often results in drastically improved cash flow) buy equipment and roll in working capital.  All within the same loan...     


Rate is normally Prime + 2.% – 2.75%.  This is with the highest level of financing in the business at 90% loan to value on purchases AND up to 85% loan to value on refinances.  Again, refinances are acceptable through the SBA 7a program, despite what you might have heard. 


SBA Loans - SBA 7a Details:
 
  • Can use program to refinance existing BUSINESS debt 
  • Rates as low as 4.25%
  • 25 year amortization schedule 
  • $400,000 - $5,000,000 loan amounts  
  • Up to 90% loan to value, cash out or rate and term refinance...
  • No small town population restrictions 
  • Need 51% or more owner occupied
  • Due to the Small Business Jobs Act, a PERMANENT increase to the maximum tangible net worth of up to $15 million, and an increase two-year average net income (after Federal income tax) of up to $5 million.
  • Minimum 550 credit score (Most banks will not fund loan request with this low of credit score - we know who will) 


Take advantage now of the SBA 7a loan program designed for business owners.  Get preapproved on your SBA commercial loan now by filling out our commercial loan application (takes less than 5 minutes to fill out). 

   

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