Home » 2009 » 04 » SBA Makes it Easier for Small Businesses to Get a 7a Loan
SBA Makes it Easier for Small Businesses to Get a 7a Loan
For those of you looking for some good news in this economy, here’s one. SBA has temporarily eliminated the upfront guaranty fees on eligible SBA 7A loans until the SBA exhausts the funds dedicated to the Recovery Act (estimated to be $8.7 billion) or on loans approved through approximately December 31, 2009. (Please be aware that the SBA ¼ point guaranty fee for loans with maturities of 12 months or less will continue to apply.)
The money be used for:
- Purchase, construction or expansion of owner-occupied real estate.
- Purchase of machinery, equipment, furniture, fixtures and leasehold improvements.
- Business acquisition or partner buy-outs.
- Debt refinancing.
Why you should consider an SBA loan:
- Need longer amortization to afford note payments (up to 25-year note and amortization).
- Cannot afford higher down payment requirements (as little as 10% down).
- Special-use property.
- Startup or young business.
- Highly leveraged.
- Insufficient collateral coverage.
The maximum guaranty amount remains at $1,500,000. Additional requirements the Borrower must meet in order for the Bank to receive the 90% guaranty:
- No loan guarantee under this initiative may be made to any entity found, based on a determination by the Secretary of Homeland Security or the Attorney General, to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United State as alien knowing the person is an unauthorized alien.
- The Borrower and any operating company will sign an additional certification.
PACC Board Member Cris Espinosa is A Business Relationship Manager with Amegy, a Preferred lender for SBA. If you’re interested in discussing this opportunity with him, you can contact him at:
Phone (713) 232-2988 | Cell (281) 753-7232 | Fax (713) 571-5303
Email: cris.espinosa@amegybank.com
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