CARTOONS BY CHRIS BRITT

There are several different SBA loan products.
• SBA Express Program. If you are looking for a quick turnaround this one is it. You
can usually get approval within 48 hours. It can be used for equipment purchases,
expansion, owner-occupied real estate purchases, working capital and more. Not only
can you get a quick response, but you can decide between a fixed and variable rate
with loan amounts up to $350,000.
• 7(a) Loan Program. This program can be used to purchase new equipment, real
estate for an expansion or working capital. You can borrow up to $5 million with
either a fixed or variable rate along with better loan terms. In the first quarter of
2016, in Washington banks made almost 200 loans for a total value of $78.5+
million.
• 504 Loan Program. For businesses looking to buy real estate or equipment, this
program can finance up to 90% of the purchase or renovation cost. You can borrow
up to $12 million with either a fixed or variable rate.
• USDA Loan Program. Businesses in rural areas can qualify for favorable terms and
interest rates. Just check online at the SBA website (http:www.sba.gov) to see if your
location qualifies.
• The Small Loan Advantage Program. Offers loans of up to $250,000 with interest
rates typically equal to the prime rate plus 2.75%. It’s geared toward businesses in
underserved markets.
• Community Advantage. If your business serves a lower-income community, you may
qualify for the Community Advantage pilot program, which also guarantees loans of
up to $250,000. The program’s loan rates vary, but they’re generally about prime plus 4%.
ADVANTAGES
High loan to value. You may be able to borrow up to 90% of the loan’s value for real
estate purchases for your business.
Guaranteed loans. Your loan is backed by the SBA so lenders will be willing to take more
risk than normal, potentially saving you money.
Longer terms. You can often get up to 25 year terms for commercial real estate
mortgages. This can save you money and lower your payments without the normal
balloon payments that often accompany traditional commercial loans.
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