| Loan Size: |
- Up to $5,000,000
- Real estate or fixed assets
|
|
|
USDA B&I Loans
Designed to encourage the commercial financing of rural businesses, to create and save rural jobs and improve the economic and environmental climate of rural communities
|
|---|
| Eligibility: |
- For-profit businesses
- Must qualify as a small business according to SBA guidelines - size varies by industry type
- Certain types of businesses are not eligible
|
- For-profit businesses
- Must qualify as a small business according to SBA guidelines - size varies by industry type
- Certain types of businesses are not eligible
|
- For-profit businesses
- Must qualify as a small business according to SBA guidelines - size varies by industry type
- Certain types of businesses are not eligible
|
SBA Patriot Express Loans
Designed for veterans and members of the military community wanting to establish or expand small businesses
|
|---|
| Specific Eligibility: |
- Must meet size standards based on NAICS code.
- Maximum tangible net worth of $15,000,000 and average net income after Federal taxes for the 2 full fiscal years before the date of application is not more than $5,000,000.
|
- Must meet size standards based on NAICS code
- Maximum tangible net worth of $15,000,000 and average net income after Federal taxes for the 2 full fiscal years before the date of application is not more than $5,000,000
|
- Must meet size standards based on NAICS code
- Maximum tangible net worth of $15,000,000 and average net income after Federal taxes for the 2 full fiscal years before the date of application is not more than $5,000,000
|
|
|---|
| Use of Proceeds: |
- Buildings (Purchase, new construction or renovation)
- Machinery or equipment (with a minimum useful life of 10 years)
|
- Land
- Buildings
- Machinery & Equipment
- Furniture & Fixtures
- Inventory
- Working Capital
- Business Acquisition
|
- Land
- Buildings
- Machinery & Equipment
- Furniture & Fixtures
- Inventory
- Working Capital
- Business Acquisition
|
|
|---|
| Loan Structure: |
- The Bank funds up to 50% of the project
- CDC/SBA funds up to 40% of project
- Applicant injects remainder (if project is special use or for business start up the applicants injection increases)
|
- The Bank funds the loan.
- SBA guarantees 75% - 85%.
|
- The Bank funds the loan
- SBA guarantees 75-85%
|
|
|---|
| Collateral: |
- The Bank loan is secured with 1st DoT
- CDC/SBA loan secured with 2nd DoT
- All owners of 20% or more must provide personal guaranty
|
- First secured interest in business assets and/or a mortgage on real estate
- All owners of 20% or more must provide personal guaranty, may be secured by available home equity
|
- First secured interest in business assets and/or a mortgage on real estate
- All owners of 20% or more must provide personal guaranty, may be secured by available home equity
|
|
|---|
| Loan Terms: |
- The Bank loan - 25 years (minimum of 10 years) on real estate, 7 years on machinery & equipment
- SBA loan - 20 years on real estate, 10 years on machinery & equipment
|
- Working capital - up to 7 years
- Equipment - up to 10 years (or useful life)
- Inventory - up to 7 years
- Real estate - up to 25 years
- Revolving Line of Credit available for 12 months to 7 years
|
- Term loans up to 25 years depending on the use of proceeds
|
|
|---|
| Interest Rate: |
- The Bank loan - negotiated rate between borrower and Bank (fixed or variable)
- SBA loan - below market fixed rate - fixed payment, loan rate set when debenture is sold
|
|
|
|
|---|
Learn More
