Graco Mortgage

How the SBA 7a Program Works

 

Contact Us: 970-663-7306

 
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SBA Guidelines 

 Business Real Estate Loans

 

For the purchase, improvements or

construction of owner-user commercial

real estate.

  • Loans from $150,000 - $5,000,000
  • Project sizes up to $11,000,000
  • Up to 90% financing available
  • Up to 25 year terms with no balloon payments
  • Competitive fixed and adjustable rates
  • Collateral can include first deed of trust on commercial, office, or industrial properties.

 

 

 

 

 

 

 

 

 

 

 

 

 

    Business Acquisition and

    Partner buyout loans

     

    For the acquisition or buyout of an existing for profit business.

      • Must be 100% buyout of ownership.
      • Loans from $100,000 - $1,750,000
      • Up to 85% financing on business acquisitions
    • Up to 90% financing on partner buy outs.
    • Terms up to 10 years, fully amortized.
    • Competitive fixed and adjustable rates.
    • Collateral can include business and / or personal assets.

     

     

     

     

     

     

     Business Expansion Loans

     

    For business owner or ownership group expanding the same business concept to a 2nd or 3rd location under similar owner structures

    • Loans from $100,000 - $5,000,000
    • Up to 80% financing
    • Up to 10 years terms for non-real estate loans.
    • Up to 25 year terms - loans that include real estate loans.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

       Franchise Loans

      For qualified franchises looking to purchase real estate, expand, purchase equipment, start-up, obtain working capital, or a combination of all of the above with just one approval.

      • Loans from $100,000 - $5,000,000
      • Up to 90% financing available on real estate projects.
      • Terms up to 25 years
      • Fully amortized, no balloon payments.
      • Fixed & Adjustable rates available.
      • Collateral can include business and / or personal assets.

       

       

        Working Capital

         

        Additional funds for short term business needs such as payroll, inventory and staff expansion.

         

        • Loans from $100,000 - $1,750,000
        • Term loans up to 7 years.
        • Customer has one approval for both project loan and working capital loan.
        • Collateral can include real property, equipment, and deposit accounts.

         

           Business Start-up

           

          For experienced business managers that need financing to start-up new operations in the same industry:

           

          • Loans from $100,000 - $1,750,000
          • Minimum cash injection required is 30% of total project cost.
          • Terms up to 10 years, fully amortized
          • Fixed & adjustable rates available.
          • Collateral can include business and / or personal assets.

           

           

           

                 

            How the Program Works

             

            Since a key concept of the 7(a) loan program is that the loan comes from a commercial lender, not the Government, a small business applies directly to a lender for financing. The lender reviews the application and decides if it merits a loan on its own or if it requires additional support in the form of an SBA guaranty. The SBA guaranty assures the lender that if the borrower does not repay the loan, the Government will reimburse the lender for its loss, up to the percentage of SBA's guaranty. However, the small business borrowing the money remains obligated for the full amount due.

            If the lender is not willing to provide the loan, even with an SBA guaranty, SBA cannot force the lender to do so. So it is important for applicants to be prepared when they approach a lender; they should know and meet the lender?s criteria and requirements as well as those of the SBA. To be considered for an SBA?backed loan, the applicant must be both eligible and credit-worthy.

                

            Call today to see just how easy it is to apply for an SBA loan. Our staff will work with you to get approved and funded as quickly as possible.  Don't wait, call now to get approved. The longer you wait, the longer it takes to get approved.

             

             

            Ray Grant
            970-663-7306