When you’re growing a business, you may require financing help. SBA (Small Business Administration)loans are designed for business owners who may have trouble qualifying for a traditional bank loan.
There are a number of advantages to a 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, wholesale, retail, and service businesses, as well as independent or franchise businesses.
- Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
- Wholesale businesses with employees up to 100 regardless of sales volume
- Manufacturers with employees up to 500 depending on the industry, regardless of sales volume
SBA 7(A) Loan Size $150,000 to $2.0 million
- Loan packaging fee: $750 to $2,000
- Fee is based on loan size, it is collected at the time of loan submission; refunded if declined by credit
- SBA guaranty fee: 1.70% to 2.60% of the loan amount
- Fee can be financed into 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 (ALL Franchises, Motels, Restaurants Gas Stations and C-Stores)
Other Credits 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 principles and guarantors
- No past bankruptcies or felony arrests
TWC Finance LLC been designated as a Preferred Financial Services company by SBA lenders, enabling us to have loans processed more quickly and efficiently than many others.
Contact us today about our SBA Loan Programs and other services.