SBA Financing

Subject:	SBA Suggested Industries
Summary:	Small business lending encompasses a very large and diverse group of businesses and industries that represent different levels of credit risk. Certain industries and collateral present higher credit risk during underwriting, appraisal, documentation and loan term. In addition, it is difficult for general credit underwriters to identify the unique characteristics and management skills necessary to successfully operate a certain business through a complete industry cycle. Following is list of industries generally believed to be of lesser business industry risk. Please note that this list is not all inclusive. Certain industries not appearing on this list may, during the course of a review or further analysis by Underwriting, be determined to represent a higher credit risk as described above.
Applicability:	SBA 504 – Purchase of Real Estate and Equipment

 

Low Risk Industries:    Industry Description

• Physician
• CPA, Tax Preparation
• Legal
• Veterinarian
• Dentists Offices, Dental Equipment & Supplies Manufacturing
• Child Day Care Centers
• Health & Personal Care Stores
• Commercial Mfg. of Retail Products
• Packaging & Crating/Shipping
• Commercial Bakeries
• Beer, Wine & Liquor Stores
• Building Material and Garden Equipment
• Franchised Restaurants
• Donut Shops like Dunkin Donuts
• Flagged Hotels/Motels
• Employment Placement Agencies and Executive Search Services
• Assisted Living Care

 

SBA 504 Details 

$100,000 to $4,000,000 (Larger Loan Amounts Available to $10 million)

Purchase to Maximum 90% LTV

Owner Occupied (50%+), Owner User Properties

We can consider any real estate transaction that is 50% Owner Occupied

Purchase ONLY No Refinances No ground lease No Balloon Payment 650+ mid score

Fixed Rate loans available to 90% LTV depending on property type

25 Years Term with 25 Years Amortization (25/25)

First Mortgage up to 50% LTV Rates

Owner Occupied Multi-Use

Add Ons for Special Use Properties

Buy Down of Rates Available

Programs Rates:

Prime Quarterly Adjust 5.00%

1-Year LIBOR Annual Adjust 5.25%

3 Year Fixed Recast 5.84%

5 Year Fixed Recast 6.69%

Pre-Payment Penalty Options – Additional Fee

Prime/LIBOR 3 & 5 Year

Declining 5,4,3,2,1 2.00% 2.50%

Flat 5% for first 5 years 1.50% 2.00%

Declining 7,6,5,4,3,2,1 1.00% 1.75%

Flat 7% for 7 years 0.50% 1.00%

Declining 10,9,8,7,6,5,4,3,2,1 0.25% 0.75%

Flat 10% for first 10 years included included

Estimated CDC Second Mortgage up to 40% LTV Rates

Local CDC’s Establish Rates

20 years fixed 5.39% %

Pre-Payment Penalty

Yield Maintenance: 10 year declining starts around 7% and goes down evenly (about .8%) per year

For a Letter of Interest go to SBA Pre-Qualification Package on the website and download