SBA Loans
SBA 7(a) Loan Program Overview
Small Business Lending, a division of CIT Bank, has been designated as a Preferred Lender, which gives us the authority to make credit decisions on behalf of the U.S. government. This enables us to process loans more quickly and efficiently than many other SBA lenders. There are a number of advantages to SBA loans, including longer terms, no points and no balloon payments.
Who is eligible for an SBA guaranteed loan?
Loan qualifications
- Retail and services businesses with 3 year average of sales not exceeding $7.0 million to $35.5 million, depending on the industry
- Wholesale businesses with up to 100 employees, regardless of sales volume
- SBA 7(a) Loan Size
- Loans from $350,000
- Loan Fees
- Loan packaging fee up to $1,000
- SBA guaranty fee
- Fee may be financed in the loan
Use of proceeds
- Commercial real estate (purchases, construction or refinance)
- Leasehold improvements
- Business expansion
- Machinery, equipment, furniture or fixtures
- Business acquisitions
- Partner/shareholder buy outs
- Start-up (franchise, medical/professional practice)
- Refinancing available on eligible commercial mortgage loan
Collateral
- First security interest in all business assets
- Personal assets (including residences) may be taken as collateral
Terms
- Up to 25 years for real estate purchases
- Up to 25 years for business acquisitions with real estate
- Up to 25 years for franchise start-ups with real estate
Down payments
- As low as 10% for commercial real estate purchase
- As low as 15% for business acquisitions
As low as 15% for business start-ups
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504 Loan Program Overview
In addition to being an Small Business Administration (SBA) “Preferred Lender, CIT Bank - Small Business Lending, also partners with Certified Development Companies (CDC) to offer SBA 504 loans.
These loans provide long-term financing to small businesses requiring financing for a commercial real estate purchase, expansion or modernization.
Who is eligible for an SBA 504 loan?
To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess of $15 million and does not have an average net income in excess of $5 million after taxes for the preceding two years.
Use of Proceeds
- Purchase, construction or renovation of owner-occupied commercial real estate
- Business acquisition with commercial real estate
- Franchise acquisition with commercial real estate
- Refinancing may be available on eligible commercial mortgage loans
- Equipment, inventory and working capital financing available with a 7(a) loan
Program Highlights
- Up to $5,000,000
- Longer loan terms - 20 to 25 years
- Up to 90% financing
Fully amortizing - no balloons
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