Quick Reference Guide to Common SBA Loan Guaranty …

Quick Reference Guide to Common SBA Loan Guaranty Programs Offered by Guaranty Bank

Program 7(a) Loans

Maximum

Percent of

Loan Amount Guaranty

Use of Proceeds

Maturity

Maximum Interest Rate

Guaranty Fees

Who Qualifies

Benefits to Borrowers

$5 million gross

85% guaranty for loans Term Loan. Expansion/ Depends on ability to repay. Loans less than 7 years:

of $150,000 or less; renovation; new

Generally, working capital $0 - $25,000 Prime + 4.25%

75% guaranty for loans construction, purchase & machinery &

$25,001 - $50,000 P + 3.25%

greater than $150,000 land or buildings;

equipment (not to exceed Over $50,000 Prime + 2.25%

(up to $3.75 million purchase equipment, life of

Loans 7 years or longer:

maximum guaranty) fixtures,

equipment) is 5-10 years; 0 - $25,000 Prime + 4.75%

lease-hold improvements; real estate is 25 years.

$25,001 - $50,000 P + 3.75%

working capital; refinance

Over $50,000 Prime + 2.75%

debt for compelling

reasons; seasonal line of

credit, inventory.

(Fee charged on guaranteed Must be a for profit business & Long-term financing;

portion of loan only) Maturity: meet SBA size standards; show Improved cash flow;

1 year or less 0.25% guaranty good character, credit,

Fixed maturity;

fee; over 1 year: $150,000 management, and ability to No balloons;

gross amount or less = 2.0%; repay. Must be an eligible type No prepayment penalty

150,001--$700,000 = 3.0%; of business.

(under 15 years)

over $700,000 = 3.5%; 3.75% Prepayment penalty for loans

on guaranty portion over $1 with maturities of 15 years or

million. Ongoing fee of 0.55%. more if prepaid during first 3

years. (5% year 1, 3% year 2

and 1% year 3)

Small /Rural Lender Advantage Loan (S/RLA) 504 Loans

$350,000

Same as 7(a)

504 CDC maxi-mum Project costs

amount

financed as follows:

ranges from

CDC: up to 40%

$5 million to

Non-guaranteed

$5.5 million,

financing:

depending on

Lender: 50%

type of business. Equity: 10% plus

additional 5% if new

business and/or 5% if

special use property.

Same as 7(a)

Long-term, fixed-asset loans; Lender (nonguaranteed) financing secured by first lien on project assets. CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien.

Same as 7(a)

Same as 7(a)

CDC Loan: 10-, 20-, or 25-year term fixed interest rate. Lender Loan: (unguaranteed) financing may have a shorter term. May be fixed or adjustable interest rate.

Fixed rate on 504 Loan established when debenture backing loan is sold. Declining prepayment penalty for 1/2 of term.

Same as 7(a)

Same as 7(a)

Same as 7(a) Plus streamlined process

.5% fee on lender share, plus For-Profit businesses that do Low down payment - equity

CDC may charge up to 1.5% on not exceed $15 million in

(10-20%); equity contribution

their share. CDC charges a tangible net worth, and do not may be borrowed

mthly servicing fee of 0.625%- have an average two full fiscal

1.5% on unpaid balance

year net income over $5

Fees can be financed

Ongoing guaranty fee

million.

(FY 2012) is 0.9375% of

SBA Portion:

principal outstanding.

Owner Occupied 51% for

Long-term fixed rate

Ongoing fee % does not

existing or 60% for new

Full amortization

change during term.

construction.

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