Boost Your Business’ Success with an SBA Loan
The SBA (Small Business Administration) was created to ensure financing is made available for small businesses that traditionally had difficulty qualifying through conventional sources. Lenders underwrite and fund these loans with a portion of the loan guaranteed by the federal government if the loan defaults.
There are several SBA Loan Types that are Basic 7(a) Loan Guaranty, 504 Loan Program, and Microloans. NOTE! We do not offer Microloans currently.
What is a 7 (a) Loan?
The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with specific requirements. Businesses that need money for start-up and existing small businesses.
This is the best option when real estate is part of a business purchase, but it can also be used for:
- Amounts from $30,000 to $5,000,000
- Short- and Long-term working capital
- Refinance current business debt
- Purchase Furniture, fixtures, and supplies
How do I know if I am eligible?
- Operate for Profit
- Be considered small businesses, as defined by the SBA
- Be engaged in, or propose to do business in, the United States or its possessions
- Have reasonable invested equity
- Use alternative financial resources, including personal assets, before seeking financial assistance
- Be able to demonstrate a need for a loan
- Use the funds for a sound business purpose
- Not be delinquent on any existing debt obligations to the U.S government
Key factors are based on what the business does to receive its income, credit history, and where the business operates.
What is the 504-loan program?
The CDC/504 Loan program provides long-term, fixed-rate financing to small businesses to acquire real estate, machinery, and equipment for expansion or modernization. Small businesses requiring “brick and mortar” financing.
- Up to $15,500,000
- 504 project includes a loan secured from a private-sector lender with a senior lien
- Loan secured from a CDC (funded by 100 percent SBA-guaranteed debenture)
- With a junior lien covering up to 40 percent of the total cost with a contribution of at least 10 percent equity from the borrower
How do I know if I am eligible?
- Operate as a for-profit company in the United States or its possessions
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million after federal income taxes for the two years preceding your application
Key factors are based on SBA size, having qualified management expertise, feasible business plan, good character, and ability to repay.
Innovation Commercial Capital works with PLP Lenders (Preferred Lenders Program) which are nominated based on their historical record with SBA. These lenders must have demonstrated proficiency in processing and servicing SBA-guaranteed loans. Under PLP, SBA delegates the final credit decision and most serving and liquidation authority and responsibility to these carefully selected lenders. In the event of payment default by the borrower and the need for enforced collections, the PLP lender agrees to liquidate all business assets before asking SBA to honor its guarantee. The benefits of working with us to be processed through our PPP lenders are:
- They can underwrite much quicker
- There is not that much “red tape”
- Credit decisions are made much faster
- They have their “own” general parameters
At Innovation Commercial Capital, we can help you acquire an SBA loan quickly and efficiently, so you can get back to running your operations.
Some of the Businesses we Finance
We offer small business loan options for building, refinancing, renovating, or purchasing. Here are some of the industries that we will finance but there is way too many to list below:
- Franchise Business
- Auto Repair/Lube
- Car Washes
- Consumer Products
- Dental Care
- Convenience Store
- Day Care
- Dental Care
- Food Services
- Real Estate Related
Qualification Criteria for Acquisitions
If you are interested in obtaining a business acquisition loan, your operations must meet several key qualifications. Most important, we will analyze how your business manages its cash flow. After assessing your application, we can prequalify you for an SBA loan within a 72-hour period.
Most of these loans come with 15-year terms and provide financing worth up to 80 percent. Plus, these loans do not balloon, they are amortized, and you do not get penalized for prepayment.
Besides business acquisition financing, we also offer equipment financing loans through the SBA. Some of the equipment we can finance includes:
- Heavy equipment
- Diagnostic equipment
- Machine tools
- Trucking equipment
- Medical equipment
- Laundry or dry-cleaning equipment
We can also finance manufacturing equipment, printing and binding equipment, and other types of business-related equipment.
Get Started Today
We want to tell you more about our small business funding options. Contact us at Innovation Commercial Capital today to speak with one of our financing professionals!