| SBA LOAN PROGRAMS |
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KCI Business Finance uses only preferred lenders who have been delegated by the SBA to give not only their own loan approval but also the approval for the SBA at the same time. This cuts down the processing time from 120 days to often no more than 45 days from submission to the lender. A key concept of the SBA 7(a) guaranty loan program is that the loan actually comes from a commercial lender, not the government; the government simply guarantees a portion of the loan proceeds. There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments.
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| 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.
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SBA 7(a) Program Profile
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Purpose of Loan
- Commercial real estate purchase
- Business Purchase
- Franchise
- New Business
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Size of Loan
- From $100k to $2 million
- Maximum guaranty set at 75%
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Cash Injection Requirements
- Minimum 10% down payment for real estate related loans
- Minimum 20-30% for working capital and equipment related loans
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Terms of Loan
- Up to 25 years maximum for real estate and equipment
- Up to 7 years maximum (generally) for working capital
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Interest Rate
- 2.75% over prime if loan is > 7 years
- 2.25% over prime if loan is < 7 years
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Qualifying Requirements
- Adequate cash flow to cover debt levels
- Acceptable credit history
- Industry knowledge (may be waived if a franchise)
- Business Plan – see www.MyBusinessPlans.com
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Loan Turnaround Times
- 10 days for Bank approval upon receipt of complete package
- 30-60 days funding from receipt of completed application package
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Loan Fees
- SBA Guaranty Fees ranging from 2.0% to 3.5% of loan depending on loan size
- KCI Business Finance may charge a $1,500 packaging Fee
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