Our team of experts has strong knowledge of all SBA lending products and a proven ability to successfully work with the Small Business Administration to obtain funding approvals for our customers.
SBA loan programs reduce risk which enables easier access to capital. SBA loans also provide a variety of potential benefits, including:
- Competitive Terms
- SBA-guaranteed 7(a) loans generally have rates and fees that are comparable to non-guaranteed loans.
- SBA 504 loans offer fixed interest rates up to 25 years.
- Unique benefits
- Lower down payments
- Flexible overhead requirements
- No collateral needed for some loans
SBA 7(a) loans - provides borrowers with loan amounts up to $5 million to fund startup costs, buy equipment and more, including:
- Purchase new land (including construction costs)
- Repair existing capital
- Purchase or expand existing business
- Refinance existing debt
- Purchase machinery, furniture, fixtures, supplies or materials
Why choose an SBA 7(a) loan?
- The SBA provides a guarantee for a portion of the loan amount to the lender. This reduces risk and provides enhanced credit approval opportunities for businesses.
- The program offers flexibility, with longer loan and payment terms, in addition to potentially lower down payment requirements.
- There are also specialized programs for businesses who export, those located in underserved communities, and members of the military community.
SBA 7(a) loans are made in conjunction with both the SBA and are subject to the approval, program requirements (including business size standards), and terms and conditions of both the SBA and CIBM Bank.
SBA 504 - provide borrowers with one of the most attractive financing solutions available. What makes a 504 loan so great?
- Low, long-term interest rates, fixed for either 10, 20, or 25 years
- Long term loan maturities and payment amortizations of 10, 20, or 25 years. Borrowers can avoid refinancing risks such as the deterioration of property values.
- Low 10% down payment. In most cases, borrowers receive a 90% advance rate, which helps preserve working capital.
- Include soft costs, such as furniture, fixtures, and closing costs, including third-party fees, in your total project cost.
- Can be used to fund the purchase, construction, or renovation of commercial real estate and/or the purchase of machinery and equipment.
How does an SBA 504 loan work?
- CIBM provides a first mortgage (or lien) loan for 50% of your total project cost.
- The CDC provides an SBA 504 loan (as a second mortgage) for 40% of the total project cost.
- You, as the borrower, provide a down payment which is typically set at a level equal to 10% of the total project cost.
SBA loans are made in conjunction with both the SBA and a local Community Development Corporation (CDC). SBA 504 loans are subject to the approval, program requirements, and terms and conditions of the SBA, CDC, and CIBM Bank.