The Small Business Administration (SBA) loan programs offered through California Credit Union provide attractive financing to assist small to mid-sized businesses. SBA loans are available for most business purposes, including, purchase of machinery or equipment, debt refinance, working capital, expansion needs, or start-up of a new business. Repayment terms are generally longer than conventional loan programs, which can have a positive impact on a company’s cash flow.
Advantages of an SBA Loan
- Up to 90% financing available
- Longer repayment terms - up to 25 years for real estate acquisitions
- Fully amortized loans – No Balloon Payments
- Competitive interest rates
- Funding typically occurs as fast as 45 days
- Projected income considerations
- SBA EXPRESS Loans are also available
Loan Purpose & Loan Terms
- Purchase an owner-occupied Commercial Real Estate – up to 25 years
- Purchase equipment and/or inventory – up to 10 years
- Start a new business – up to 10 years
- Acquire a business – up to 10 years
- Financing for franchises – up to 10 years
- Debt refinancing – up to 10 years
- Working capital – up to 7 years
Qualified Properties
- Free standing industrial & commercial buildings
- Office, medical and industrial condominiums
- Hotels & motels
- Restaurants
- Franchise specialty buildings
Loan Amounts and Interest Rate
- Loans from $100,000 to $5 million
- Variable rate adjusted quarterly
- (Commercial Real Estate loans may qualify for a fixed rate)
Loan Maturities
- Working capital and inventory: 7-10 years
- Machinery and equipment: up to 15 years
- Commercial real estate: up to 25 years
Fees
- SBA Guarantee Fee - SBA fee of 2.5% to 3.5% depending on loan amount.
- Packaging fee from $250 to $2,500
- Out-of-pocket fees (including appraisal, title insurance, environmental reports, etc.)
Eligible Small Businesses
- For-profit sole proprietorship, corporation, partnership, or LLC
- Independently owned and operated
- Meet size standards established by the SBA
Qualifying Credit Standards
- Adequate primary source of repayment (i.e., cash flow from business operations)
- Secondary source of repayment (i.e., collateral consisting of real estate and/or fixed assets.)
- Personal guarantees of individuals with ownership of 20% or more in the company
- Management ability/experience
Whatever your loan requirements, we invite you to request more information about how California Credit Union can help you with financing to meet your business needs.
For more information, or to apply for a loan, call toll free, (866) 438-1899.
