CIBM Bank

Whether your company is looking to purchase a building, buy new equipment, or need working capital, most companies will look to their bank for financing options. But what options are available? There is traditional commercial lending, in which the company will usually put 20% - 25% down and the bank will finance the remaining cost for a term of 5 – 7 years for equipment, or 15 years for real estate. But what happens if your company doesn’t have 25% cash to put into the project? That’s where SBA lending can help!

SBA loans are different than traditional commercial loans because of their flexibility in cash injection, terms and collateral requirements. Here are the general differences, but keep in mind that each loan request is evaluated on its own merit:

10% cash injection usually required
Longer Terms available, such as 25 years for the purchase of real estate
Collateral shortfall is okay, as long as all available collateral is taken
Term and amortization match, meaning you never have to refinance and pay additional fees

20% - 25% cash injection is usually required, depending on the project
Terms will typically be shorter, with real estate financed at 15-25 years, depending on the type of real estate and/or age of the building
Loans must be fully collateralized
Usually, commercial loans will have a shorter term, with a longer amortization – meaning you will need to renew / refinance the loan

Utilizing SBA lending for your business needs can help save cash! With a lower down payment, you can retain more money in your company for every day cash flow needs. Longer term amortizations will result in lower payments, which will also help you save money.

If your company is ready for financing, consider the advantages of SBA lending to meet those needs

At CIBM Bank we understand your hard work, your commitment and the financial decisions you have to make on daily basis -- whether that be for your business, or buying or maintaining a home, or just your day-to-day financial-related needs. We also understand there are times you just need some help. And that’s what we’re here for. To help makes things a little easier for you, to provide experts who can walk you through the variety of options to best meet your particular needs, and to provide just a little more peace-of-mind. Call us or visit www.cibmbank.com

The information expressed is being provided for informational and educational purposes only. It is not intended to provide specific advice or recommendations for any individual. CIBM Bank does not provide tax, legal, or accounting advice. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult your own tax, legal, and/or accounting advisors before engaging in any transaction.

What makes an SBA loan different from a traditional commercial loan?

SBA Loans

Commercial Loans