SBA Loans
The U.S. Small Business Administration provides a number of financial assistance programs for small businesses. As a member of The Preferred Lenders Program (PLP), Highland Commercial Bank is able to "streamline" the procedures necessary to provide financial assistance to the small business community. Compared with conventional business financing, SBA loans can offer easier qualification, lower down payments, more affordable monthly payments, and full amortization. An SBA loan may be a good choice if you:
- Are starting or buying a new business
- Have been in business a short time
- Need additional working capital to finance rapid growth, such as for new equipment, facilities construction or purchasing inventory
- Need high loan-to-value financing
- Are unable to obtain conventional financing
Your business is eligible for SBA financial assistance if it is:
- Operated for profit
- Organized as a sole proprietorship, corporation or partnership (includes LLC and LLP)
- Doing business in the U.S. or its possessions
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Within the following size guidelines:
- Retail and Services - Generally up to $6.5 million in annual sales. Some industries may be higher
- Construction - Up to $31 million in annual sales
- Wholesale - Up to 100 employees
- Manufacturing - Generally up to 500 employees
- Specialty Contractors - Up to $13 million in annual sales
- Annual sales determined by an average of sales for the 3 preceding fiscal years
For many types of SBA loans, the assets being financed - such as equipment or real estate - serve as the collateral for your loan. However, principal owners must have acceptable personal credit histories and may have to pledge available business or personally owned assets. SBA financing requirements can include:
- Personal guarantees of owners with 20% or more ownership in the business
- Accounts receivable and inventory, depending on collection history and marketability
- Machinery and equipment
- Real estate and improvements
For more information or to arrange an appointment, contact Beverly J. Carter at 770-333-0772 or email beverly.carter@highlandcommercialbank.com
SBA 7(a) Loans
The 7(a) loan program is the SBA's primary loan guaranty program. It's the most flexible and serves a broad base of borrowers.
SBA 504 (CDC) Loans
The 504 program provides growing businesses with long-term, fixed-rate financing for such major fixed assets as land and buildings. 504 loans are unique: In addition to the borrower and the bank providing funds for the project, a CDC also loans up to 40% of the project cost. CDCs (Certified Development Companies) are non-profit corporations set up to contribute to the economic development of their communities. A CDC loan is backed by a 100% SBA guarantee.
To learn more about SBA 7(a) loans or SBA 504 loans, go to http://www.sba.gov/.
