SBA (Government Guaranteed) Loans
Put your future first with First GREEN Bank
What is a SBA Loan?
It is one of the longest-term and most affordable business loan options out there.
A SBA loan is a long-term, low interest small business loan that is partially guaranteed by the government. Under the U.S. Small Business Administration’s various SBA loan programs, you can borrow money for nearly any business purpose.
- Purchase commercial real estate and new equipment
- Acquire a business
- Purchase inventory
- Start or expand your business
5 – 25
5 – 8
As Little As
*Ask about special LOW financing on “GREEN” Loans*
How do I apply?
You will be asked to complete an extensive loan application.
You’ll need to provide documents like financial statements, information on your collateral, a description of your business, and a statement of how you’ll use the loan proceeds. We look for applicants with good credit, a solid business plan, and a demonstrated ability to repay the loan. Your borrowing history is especially important.
How do I qualify?
SBA loans are for business owners with strong borrowing histories.
The most important factor will be your credit score. Minimum requirements are:
Time in Business
Are there different types of SBA (Government Guaranteed) Loans?
Yes. There are three more popular loan types.
The cost and repayment of your SBA loan depends on the program you choose.
Click each loan type below to see the fees, interest rates, and repayment terms.
Fees: A guarantee fee, based on your loan’s maturity and the dollar amount guaranteed, might be included in the total cost of the loan. These fees range from 0% for loans under $150,000 to 3.5% on loans of more than $700,000. There’s also an additional fee of 0.25% on any guaranteed portion of more than $1 million. 7(a) SBA loans come with interest rates in either fixed or variable (typically adjusted quarterly) varieties.
Interest: If your loan term is less than 7 years, the maximum spread will be at most 2.25%. For longer loans, that spread increases to 2.75%. Basically, you’ll wind up paying a rate between 5 – 13%.
Repayment: You can expect monthly payments for 25 years for real estate, 10 years for equipment, and generally up to 7 years for working capital. Keep in mind: these are the longest terms you’ll find, giving you plenty of time to figure out how to make each payment and spreading those large loan amounts over many years.
Fees: Usually about 3% of the loan amount—and can sometimes be financed with the loan. Also, be aware that you’ll need to put around 10% of your purchase down to secure 504 SBA financing.
Interest: expect an interest rate of 5 – 6% on your loan. You won’t know the exact rate until roughly 45 days after the fact, though.
Repayment: You’ll find maturity terms of 10 and 20 years.
Fees: Initial guarantee fee = 3 percent of the guaranteed amount of the loan. Annual renewal fee = 0.5 percent of the outstanding loan amount. This is usually paid by the borrower every year. Other bank fees. Banks may charge application fees, servicing fees, appraisal fees, or other fees. Banks may also charge a prepayment penalty for the loan. Fees change periodically.
Interest: is typically around 5-9 %. Interest rates for USDA business loans may be fixed or variable.
Repayment: Maximum term on real estate is 30 years Maximum term on equipment is useful life or 15 years, whichever is less Maximum term on working capital (e.g. inventory) is 7 years. USDA business loans are fully amortizing loans, which means you pay down principal and interest over the term of the loan. At the end of the term, the loan is fully paid off. There are no balloon payments.