Small Business Administration Loan

A Crestmont Capital SBA Loan is the perfect financial vehicle for businesses to access expansion capital at below market rates. Our streamlined process takes the stress out of the usually bank waiting game as our professional Financial Advisors guide you through the complicated waters of an SBA loan application. Our dedicated SBA Loan Advisors have the experience and understanding needed to secure the SBA Loan your business wants and needs. We make a seemingly complicated process appear almost as easy as ordering a cup of coffee.


SBA Loan Advantages

  • Stretching Out High Limit Debt Over a Period of Up To 30 Years
  • Prime Based Interest Rates
  • Freeing Up Cash Flow
  • Loan Amounts Up To 50 Million
  • The Security of a Small Business Administration Loan

 

SBA Loan Program Details

 

 

SBA Loan Options

SBA-504 Loan

(Commercial Real Estate and Equipment)

90% Fixed Rate

SBA 7(a) Loan

(General Purpose)

Loan Size

$250,000 to $5,000,000 $250,000 to $5,000,000

Interest Rates

• Fixed
• Fully amortized through the term of the loan
• Interest rates on 504 loans are set monthly at the time of funding at an increment above the current market rate for five-year and ten-year U.S. treasury issues
• Variable rate; some limited fixed-rate options
• Fully amortized through the term of the loan
• Interest rates are negotiated between the borrower and the lender subject to a mandated SBA ceiling and floor

Eligible Businesses

• Business net worth not to
exceed $15 million
• Average net profit after taxes for 2 consecutive years not to exceed $5 million
• Determined by industry type
• Annual sales not to exceed range of $750,000 to $33.5 million for retail, service and agriculture
• Number of employees not to exceed range of 100 to 1,000 for wholesale and manufacturing

Available Terms

• 20 years fully amortized –
real estate loan
• 10 years fully amortized –
equipment loan
• No balloon payments
• Up to 25 years – real estate
• Up to 10 years – equipment, business acquisition
• 5 to 7 years – working capital
• All loans are fully amortized
• No balloon payments

Loan Structure

• 50% bank loan
• 40% CDC loan
• 10% borrower down payment
• Loan structure negotiable; dependent on risk
• 10% down payment (minimum)

Loan Uses

• Purchase existing building
• Land acquisition and ground up construction (includes soft cost development fees)
• Expansion of existing building
• Finance building improvements
• Purchase equipment
• Expand, acquire or start a business
• Purchase or construct real estate
• Refinance existing business debt
• Buy equipment
• Provide working capital
• Construct leasehold improvements
• Purchase inventory

Loan Program Requirements

• 51% owner occupancy required for existing building
• 60% owner occupancy required for new construction
• Equipment with a minimum 10 year economic life
• 51% owner occupancy required for existing building
• 60% owner occupancy required for new construction
• All assets financed must be used to the direct benefit of the business

Collateral

• Generally, the project assets being financed are used as collateral
• Personal guaranties of the principal owners of 20% or more ownership are required
• Collateral is the subject assets acquired by loan proceeds
• Requires pledge of personal residence unless bank can justify why unnecessary
• Personal guaranties of the principal owners of 20% or more ownership are required

Loan Fees

• Fees are financed in the 504 loan
• Fees are negotiated for the 50% bank loan
• Servicing fee (lowest allowed by SBA) for CDC 504 plus a legal review fee
• Fees can be financed in the 7(a) loan
• Fees vary with the size of the loan accompanying the 504 loan
• An additional .25% is charged on any loan portion above $1 million