SBA LOANS / SMALL BUSINESS LOANS

Loans provided through commercial lenders, with partial guarantees from the US Small Business Administration (SBA).

$25,000 - $2,000,000 (larger loans considered on a case by case basis)

Start-Ups welcome, including cash businesses, such as restaurants, bars, and gas stations.

Prerequisites:

• Good personal credit, that is well established, of all Principals.
• Experience related to the business by at least one Principal.
• Investment from personal funds.
• Collateral is required for start-ups, some purchases, and some existing business requests. The most common collateral is home equity. The SBA requires a lien on collateral available, which includes a blanket lien on business and personal assets, and for start-ups, on home equity from homeowners. Start-up requests up to $150,000, may be secured, if the Principle is not a home owner.
• The Purchase of an existing business, must show sufficient cash flow to service the debt of the loan requested.
• Asset purchases may be considered, when the existing business financials are not available.
• Start-ups need to provide a lease or proposed lease, with a term and options of renewal, totaling at least the term of the loan being requested. (Example: a 7 year loan request, can have a 5 year lease with an option to renew of 2 years or more).
• Co-Signers/Guarantors, & Pledging of Collateral, from Parents and Relatives is acceptable.

SBA Loan Submission Requirements:

• last 3 years 1040 federal tax returns, signed and dated, for all Principals.
• last 3 years business federal tax returns, signed and dated, for all existing business, and business purchases. If you own more than one business, the SBA requires that you also supply 3 year tax returns on your other business(es), even though they are not applying for the loan.
• Interim balance sheet and income statement for the most recent month’s end.
• Executive Summary of your transaction. If you have a complete Business Plan, please provide.
• 1 – 2 year financial projections (forms provided).
• Resume for all Principals (forms provided).
• Personal Financial Statement for all Principals (forms provided).
• Use of proceeds list, specifically identifying how much money will be allocated for equipment, machinery, and fixture purchases, inventory, leasehold improvements, and any other uses.
• Start-ups require a copy of lease or proposed lease for premises.
• SBA forms from this website
• 4506 form for each Principal, each Business, and if a business purchase, from the seller for the business to be purchased.