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Small Business Administration Loans

One of the best financing options for small and growing businesses and growth-minded professionals is a loan guaranteed by the Small Business Administration (SBA).

If you need financing to purchase a business, equipment or fixtures, working capital, or business real estate, just contact us. Our experienced SBA staff will help you take advantage of the many benefits available through the SBA program.

SBA 7(a) Loan Program Overview

There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments.

Who is Eligible for an SBA Loan?

Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesalers, retail and service businesses as well as independent or franchise businesses.

Loan Qualifications

• Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
   
• Wholesalers and manufacturers with employees up to 1500, regardless of sales volume

SBA 7(A) Loan Size

$25,000 to $2 million

Loan Fees

• Loan packaging fee: $500 to $1,500
• Fee is based on loan size
• SBA guaranty fee: 0.75% to 2.69% of the loan amount*
• Fee can be financed in the loan

Use of Proceeds

• Commercial real estate (purchases, construction, or refinance)
• Leasehold improvements
• Business expansions
• Machinery, equipment, furniture or fixtures
• Business acquisition
• Working capital (offered in conjunction with some of the above)
• Start-Ups (franchise and non-franchise)
  

Collateral

• First security interest in all business assets (excluding titled vehicles)
• Personal assets (including residences) may be taken as collateral
  

Terms

• Up to 25 years for real estate purchase
• Up to 10 years for business acquisition
• Up to 7 years for franchise start-ups

Down Payments

• 10% - 15% of commercial real estate purchase
• 15% - 20% for business acquisitions
• 20% - 30% for business start-ups
  

Other Credit Considerations

• Business must have adequate historic cash flow to cover the proposed debt
• Business debt to net worth must meet industry averages
• Borrowers must be actively involved in the day-to-day operation of the business
• Satisfactory personal credit histories are required for all principals and guarantors  

For more information, please contact our SBA experts at (573) 874-4700 in Columbia; (573) 335-3100 in Cape Girardeau; (573) 547-6541 in Perryville; or (888) 547-6541, or visit your nearest Bank of Missouri location.

*Subject to change

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