SBA Loans in Austin, Texas
Helping People finance their Business with a SBA Loan!
What I Do:
My passion is helping entrepreneurs attain the American Dream of owning their business or expanding their business. My team and I have over 50 years of SBA experience combined. My Value Proposition is bring SBA loans from around the country to the client ensuring the most likelihood of closing and at the same rate as your local bank. The key is getting your SBA loan closed by placing your loan with the lender that most suits your strengths. We do it better than anyone! Many of our clients have been turned down either by the big banks or the local banks. We are your one stop shop for getting SBA financing with a personal touch. We lend nationwide.
What borrowers do not understand
Banks do not lend to all business or commercial property types. Banks have a particular wheelhouse of what they will lend. You can spend time going from bank to bank applying for a commercial loan and not knowing that the bank does not lend on that type of property/business/etc.. In the meantime, you are lowering your credit scores and wasting time which ends up lowering your chance of getting a loan. You can stop the frustration. If your bank turned your loan down, come to me and my team for help. I close your SBA loan by placing your loan with the lender that most suits your strengths at the same rates as the local banks.
SBA 7(a) Loan Criteria:
Types of SBA Loan we offer:
We offer the SBA Express Loan, SBA 7a and the SBA 504
What is a SBA Loan 7(a) and SBA Express?
The SBA loan Express and SBA 7(a) loan program is for higher-risk loans; like the acquisition of a business, start-up business, or business that is less than 2 years old or an existing business that is expanding and needs equipment and working capital. The loan is used for working capital, equipment, furniture and fixtures, and leasehold improvements or purchase of commercial real estate etc.
The difference between the SBA Express Loan and the SBA 7a loan is the loan amount size.
My SBA Express minimum loan size is $351,000.00 dollars up to $5,000,000.00 dollars.
Why do Business Owners Utilize the SBA Express and SBA 7a over the SBA 504?
SBA 7a is more flexible than the 504 in that it can use projections for income and expenses to Debt Service for the loan.
Acquisition of Business without Real Estate with a SBA Express and SBA 7a Loan.
Many banks do not want to lend to a start up businesses/start up franchises if there is no real estate involved. Well, I am able to lend up to $5MM of goodwill which is unheard of in this market. If the SBA loan is business only, for a start up you will typically 20% injection if the loan amount is below $500,000.00 dollars. If the business only piece above $500,000.00 dollars the injection required is 25%.
What is the Loan to Value if Purchasing Real Estate with a SBA 7a Loan?
If the owner is purchasing real estate it is 90% for office, warehouse etc. If the owner is purchasing special purpose property it can be 85% or less loan to value.
What is the Rate on SBA 7a?
- For Business Only Loans
Variable based on a spread over the WSJ prime rate; maximum spread cannot exceed WSJ Prime + 2.75%
- Fixed Rate available on Real Estate.
What is the Minimum SBA 7s Loan Amount we Finance?
The minimum loan amount for my lending sources is $250,000.00 dollars.
Who can qualify?
Most for-profit small businesses in the U.S. are eligible. This includes the following business types: Manufacturers, retail and service businesses, franchises and professional businesses. Size standards are in place. Please call for more detailed information.
Maximum Loan Size for SBA 7a?
Up to $5,000,000
Use of Proceeds Loans for Small Business
Commercial Real Estate (acquisition,construction, refinance, expansion)
Equipment
Furniture & Fixtures
Inventory
Leasehold Improvements
Working Capital
Business
Terms Loans for Small Business 7a Loan
Up to 25 years for Commercial Real Estate
Up to 10 years for Equipment and Business Acquisitions
Up to 7 years for Working Capital
Fully-Amortized over life of loan (no balloon)
SBA 7a Loan to Value
Up to 90% for most real estate types
Up to 80% for business that are $500,000.00 or less
Up to 75% for the businesses that are more than $500,000.00
SBA Loan Fees
One time SBA loan guarantee fee based upon guaranteed amount
Equity Injection
Typically 10% on multi purpose commercial real estate
5% for businesses that are expanding
Other Costs
Real estate and equipment appraisals, environmental reports, business valuations, customary legal and closing costs as applicable
Are there Prepayment Penalty (PPP) on a SBA 7a Loan?
5% the first year, 3%the second, 1% the third
Payments up to 25% of the outstanding loan balance will not incur a PPP (on terms of 15 years and greater)
Are SBA 7s Recourse Loans?
Personal Guarantees required for all individuals owning 20% or more
Corporate Guarantees may be required for affiliated companies
Benefits for Borrowers
Finance up to 90% of the project w/commercial real estate
Low equity contribution (preserves working capital)
Fully amortizing loans
Some soft costs may be rolled into the project financing
Occupancy
51% for existing facilities/buildings (renovations and expansions are eligible)
60% for Ground-Up Construction Projects (should occupy 80% within 10 years)
Sample projects financed by 7(a)
Office Buildings
Medical Clinics
Franchises
Restaurants
Car Wash
Child/Adult/Pet Daycare
Dentists
Printing/Copying
Suppliers/Wholesalers
Manufacturers
Movie Theaters
SBA 504 Loan Criteria:
The SBA Loan 504 loan program is for typically for existing small businesses to finance commercial real estate which can include furniture, fixtures and equipment for use in business operations. The loan to value aka is 90% on office, warehouse, etc. and on special-purpose like hotel, swim pool it is 85% or less. The lenders prefer to finance the SBA 504 if the loan amounts typically are a $1MM plus. 504 has better rates which are fixed rates and longer amortizations (25 to 30 years). The SBA 504 is a conventional first and an SBA second. There are actually 3 loans because there is a debenture loan which is basically a bridge loan made by the Certified Development Company’s. The 504 has a 10-year prepayment penalty.
Who can qualify?
Most for profit, owner-occupied small businesses in the U.S. with the company’s average net income cannot surpass $2.5 million. The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals. Net worth of the operating companies must be $7.5 million or less.
SBA Loan Size
Up to $6,500,000.00 dollars on Conventional (1st Lien)
Up to $5,000,000 SBA (2nd Lien Maximum)
What can SBA 504 loan proceeds be used for?
Commercial real estate (acquisition, construction, refinance, expansion)
Equipment
Furniture
Fixtures
Terms
1st lien: Up to 25 years for commercial real estate
2nd lien: Up to 20 years for commercial real estate
1st & 2nd liens: Up to 10 years for equipment
All loans are fully amortized over the term of the loan
Interest Rates
1st lien: Set by Lender start in the 3’s
SBA 504 2nd lien: Fixed-rate set by the SBA for the term of the loan start in the high 2’s
Loan to Value Loans for SBA Loan Small Business
Up to 90%
Fees Loans for SBA Loan
1st lien: Set by the lender
SBA 504 2nd lien: Set by the lender and CDC/SBA
Equity Injection
10% standard; =5% if special use; =5% if start-up
Other Costs
Real estate and equipment appraisals, environmental reports, business valuations, customary legal and closing costs as applicable
Prepayment Penalty
1st lien: Set by the lender
SBA 504 2nd lien: 10 year PPP based on declining balance of debenture rate
Recourse Loans for Small Business
Personal guarantees required for all individuals owning 20% or more
Corporate guarantees may be required for affiliated companies
Benefits for Borrowers
Will finance up to 50% of the project at a long term, variable rate
CDC will finance up to 40% of the project at a fixed rate
Low equity contribution helps preserve working capital
Some soft costs may be rolled into the project financing
SBA Loan Occupancy Requirement for Real Estate
51% for existing facilities/buildings (renovations and expansions are eligible)
60% for Ground-Up Construction Projects (should occupy 80% within 10 years)
Sample projects financed by 504
Hotels
Office Buildings
Medical Clinics
Franchises
Restaurants
Automotive
Car Wash
Child/Adult/Pet Daycare
Dentists
Printing/Copying
Suppliers/Wholesalers
Manufacturers
Movie Theaters
How Quick to determine if you are eligible for SBA Loan?
Most local bank takes weeks to issue an term sheet. We can let you know within 72 business hours once we receive a loan package.
Give us a call today to discuss your project at 512-358-1511 or Get Started Now by Filling Out the Form.