The SBA7(a) Loan Program
When it comes to purchasing your own building, purchasing equipment and obtaining much desired working capital the SBA7(a) loan program is considered one of the most desirable ways to achieve your goal of obtaining the combination of maximum leverage with incredibly competitive rates.
SBA7(a) loans are designed to help small businesses owners purchase, construct or improve an existing commercial building as well as provide financing for working capital and purchase fixtures, furniture & equipment.
Advantages of a SBA7(a) Loan
- Higher than normal leverage than a conventional Bank could offer from its portfolio.
- A low down payment and/or equity injection required for your project
- For real estate secured loans fully amortizing loans up to 25 years with no balloon payments
- Seventy-five percent (75%) of your loan is government guaranteed. Therefore Lenders can provide you with higher than normal LTV’s. Please note that under the SBA7(a) loan program additional collateral, where available, is required until a 1.00:1.00 collateral coverage ratio has been achieved.
- Closing costs such as appraisal fee, environmental fees, contingency fees can/will be included in the financing
- Projected income consideration. The Lender in an SBA7(a) loan can consider projected income of a business in addition to historical cash flows. This is particularly advantageous for growing businesses.
Structuring Of A SBA7(a) Loan
A SBA7(a) loan has two participants (see chart below):
- Loan Amount up to $ 5,000,000
- Under the SBA7(a) loan program Arrow Mortgage, LLC offers our clients a wide variety of financing options. We offer a quarterly ARM, a 1yr ARM, a 3yr ARM and a 5yr ARM.A 1st Mortgage Lender who provides a first trust deed loan for up to 90% of the total project cost.
- A Small Business Owner who contributes a down payment of at least 10%of the total project cost. (Please note that this amount could be slightly higher for start-up businesses, change of business ownership and/or in combination with single purpose properties)
To Meet The Minimum Qualifications For A SBA7(a) Loan The Business Must:
- Be organized as a for-profit business.
- Be organized as a sole proprietorship, corporation, partnership or limited-liability corporation (LLC)
Other Eligibility Requirements
- The business must occupy at least 51% of the existing building. For new construction to permanent loans the business must occupy at least 60% of the property.
- Equipment that is financed into the project must have a minimum 10-year remaining economic life
Interested in applying?
Please complete the enclosed form and a Representative from Arrow Mortgage, LLC will promptly contact you.
Free Initial Assessment
Contact us today to obtain a free initial assessment of your current financial situation
Email: info@commercialfunds.com
Phone: (321) 400-9060
Interested in applying?
Please complete the enclosed form and a Representative from Arrow Mortgage, LLC will promptly contact you.
Arrow Mortgage, LLC may be able to provide you with conventional real estate secured financing for your next project up to $8,000,000
If you are an established business owner and you are looking to purchase a property with a minimum down payment Arrow Mortgage, LLC may be able to provide you with up to 90% LTV with SBA 504 financing for your next project up to $ 13,000,000.
If you are a business owner and you are looking to refinance debt or purchase a property with a minimum equity injection Arrow Mortgage, LLC may be able to provide you with up to 90% LTV with SBA7(a) financing for your next project up to $ 5,000,000.
Arrow Mortgage, LLC may be able to provide you with real estate secured financing for your next project up to $50,000,000
