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SBA Lending

SBA Lending


Preferred Bank’s SBA Department offers small businesses various financing types, from working capital to business and real estate acquisitions. Our SBA specialists will guide you through the best available programs to meet your specified needs and closing timeline. Contact the SBA Team at SBALending@preferredbank.com.
 
SBA 7 (a) Loan Program
This is a government-guaranteed loan program established by U.S. Small Business Administration (SBA) to encourage lenders in assisting qualified small businesses unable to obtain funds on reasonable terms through conventional loans. The maximum SBA 7(a) loan amount is $5,000,000.
 
SBA 504 Loan Program
This program provides long-term, fixed-interest rate financing for major fixed assets, involving owner-occupied commercial real estate. The SBA 504 loan program offers small businesses financing with low down payment requirements. Processing an SBA 504 loan involves three parties: Lender (Preferred Bank), the Certified Development Company (CDC), and Borrower.
 

SBA 7(a) Loan Program SBA 504 Loan Program
Use of Funds
  • Working capital 
  • Equipment & inventory purchase
  • Leasehold improvements & construction
  • Business acquisition 
  • Real estate purchase
  • Business debt refinancing
  • Commercial real estate acquisition
  • New facilities purchase or construction 
  • Existing facilities improvement 
  • Machinery & equipment purchase 
  • Commercial mortgage refinancing

Standard Loan

Structure

  • Loan structure varies based on the financing request
  • 50% financing from Preferred Bank 
  • 40% financing from CDC (SBA 504 Loan)
  • 10% down payment from Borrower
Loan Terms
  • Business involved project – up to 10 years
  • Real estate involved project – up to 25 years
  • Preferred Bank’s portion can be amortized up to 25 years with a 10-year maturity
  • SBA 504 portion can be amortized for up to 25 years with a 25-year maturity
Interest Rate
  • Variable rate based on Wall Street Journal Prime (WSJP) Rate plus a margin
  • SBA 504 portion is a fixed rate for the entire loan term

Eligibility

Requirements

  • Must meet the SBA size standard based on annual gross revenue or number of employees by business industry type
  • Must be a for-profit business operating and located in the United States
  • Must meet the SBA size standard based on annual gross revenue or number of employees by business industry type
  • Must be a for-profit business operating and located in the United States
 
Disclosures:
  • SBA loan products are subject to credit approval and program guidelines.
  • SBA loans are subject to SBA eligibility guidelines.
  • Certain restrictions apply to refinancing options and are subject to program terms.
  • Other limitations and restrictions may apply.