Accounts Receivable and Inventory Finance | Loans| SBA Loans
Government-Guaranteed Programs
As an independent, locally owned and operated commercial bank, we are dedicated to providing the ultimate in personal service. We offer all of the current Small Business Administration (SBA) loan programs that are available to the small business owner.
The 7(a) Loan Guaranty Program is the SBA’s primary business loan program. Special programs have been designed within the 7(a) program to meet the specific financing needs of small businesses.
Use of Proceeds - An eligible business may use the proceeds of a SBA guaranteed loan for:
- Real Estate acquisition, refinance, construction or conversion/expansion/ renovation of - existing facilities including fixtures and leasehold improvements;
- Machinery/equipment purchase;
- Business acquisitions;
- Capital injection (working capital);
- Debt consolidation/restructuring (including payables)
Loan Maturities - SBA established maximum loan maturities are based on the use of proceeds. Maturities for loans with multiple purposes are determined on a pro-rata basis, depending on the various basic SBA maturities involved. Basic maturities are:
Working capital classifications..............up to 10 years.
Machinery/equipment acquisition........up to 15 years
or the economic life (as established by the company’s CPA),
whichever is less.
Business acquisition...........................up to 10 years.
Leasehold improvements.....................up to 10 years.
Real Estate related transaction............up to 25 years.
This program is specially designed for the purchase of fixed assets at lower down payments and lower interest rates. Typically, the Bank makes a senior lien real estate loan for 50% of the purchase price, while a Community Development Corporation (backed by the SBA) covers up to 40% of the purchase price with a junior lien facility.
- Purpose: Fixed assets only - no working capital
Loan Amount: Usually up to $2,000,000; however, the total project can be as much as $6,000,000.
Maturity: 10 or 20 years
- Interest Rate: Lower than for conventional loans
Collateral: Real Estate and/or Equipment
Benefits of this Program:
* Down payment as low as 10% of the cost
* Lower interest rates.
* Longer Terms
CAPLINE
This revolving line program is designed to help small businesses meet their short-term and cyclical working capital needs.
- Purpose: Short-term working capital
- Loan Amount: Maximum of $1,000,000
- Maturity: Up to 5 years. 30 day clean-up during a 12 month period is required.
- Interest Rate: Variable based on Prime Rate.
- Collateral: Business Assets.
