Small Business Administration Loans (SBA Loans)
Charter Bank is experienced in providing US Small Business Administration (SBA) Loans.
We work with the SBA on their guidelines to make loans to local businesses. The SBA offers small businesses a variety of programs. SBA programs have been specifically designed to meet key financing needs.
Benefits of an SBA loan include the ability to secure long term financing (no balloon payments), flexible program requirements, longer amortization, lower down payment, and easy accessibility to financing thanks to the Small Business Administration guaranty.
SBA loans fund a variety of business needs including:
- Business acquisition
- Real Estate purchases and additions
- Fixed asset purchases such as equipment, vehicles, and machinery
- Business expansion and permanent working capital
- Start-up business expenses
- Refinance of existing debt
Charter Bank currently participates in these SBA programs:
- SBA 7a – The 7a loan program has flexible parameters to accommodate most requests.
- A 7a loan cannot have a revolving provision and the maximum loan size is $5,000,000. Term of the loan is dependent on the purpose of the request; typically, working capital and equipment loans up to 7 – 10 years, while real estate can be as much as 25 years. The SBA provides the lender with a 75 – 85% guaranty, depending on the request.
- SBA Express – With an SBA Express loan program, the loan amount cannot exceed $350,000.
- The loan can be a term loan or a revolving line of credit The SBA provides the lender with a 50% guaranty. Charter Bank is a preferred lender for this program.
- SBA 504 – The 504 program is intended for real estate purchases, construction, and machinery and equipment purchases. This program enables the borrower to provide as little as a 10% equity injection.
- The financing package is structured with 2 loans – one loan is typically obtained through Charter Bank for 50% of the financing needs, secured by a 1st lien on the asset; a second loan is obtained through a certified development company for approximately 40% of the financing needed, depending on the amount of borrower contribution required. The loan is a fixed rate loan up to a 20 year term and is secured by a 1st lien on the asset.
- Export Express – The simplest export loan product offered by the SBA which usually offers a quick turnaround in the decisioning process.
- Loan proceeds (up to $500,000) may be used for business purposes that will enhance a company’s export development that can take the form of a term loan or line of credit. Charter Bank is a preferred lender for this program.
Talk with one of our Business Bankers to review these programs and let us help you find the perfect fit for your business with our personalized service.