SBA Loan Quick Reference Guide

SBA Loan Program
7a
504
Express
Maximum Loan $2 million gross
($1.5 million guaranty)

504 Loan maximum amount ranges from $1.5M to $4.0 M depending on project. $350,000
Guarantee Percentage Maximum guaranty of 75% up to $1.5M;85% if gross Project Costs financed by: 504 Loan up to 40% Lender: 50% Equity 10-20%. 50%
Loan Usage Expansion / renovation; New construction, purchase land or building, equipment, fixtures, leasehold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit Long-term fixed asset loans; Lender financing secured by first lien on project assets but unguaranteed. May be used for revolving lines of credit (up to 7 years) or a fixed term loan
(same as 7(a)).
Loan Terms Depends on ability to repay; generally working capital & M & E (not to exceed life of equipment) is 5-10 years; real estate, Construction, up to 25 years 504 Loan: 10 or 20 year term. Lender (unguaranteed) financing may have a shorter term. See 7(a)
Interest Rates Loans 7 years or less: max. prime + 2.25%; over 7 years: prime + 2.75%; less than $50,000, rates are 2% higher; for loans of $25,000 or less; and 1% for loans between $25,000 and 50,000. Prepayment penalty is applicable for 15 year loans or more if paid off during 1st 3 years.   Loans $50K or less prime + 6.5%; $50K + Prime +4.5%
Fees (Fee charged on guaranteed loan portion only.) Maturity 1 year or less 0.25% gty fee ; over 1 year: $150,000 (gross amount) or less = 2% ; $150,001 - $700,000 = 3.0%; over $700,000 = 3.5%. 3.75% on guar. portion over $1 M. On-going fee of 0.545%. Applies to both the debenture amount and the first mortgage amount. On-going fee % does not change during term. See 7(a)
Eligibility Must be for profit & meet SBA loan standards; worthy business character, credit, management, and repayment ability. Must be an eligible type of business. For profit businesses that have less than $7M in tangible net worth and do not exceed average net income > $2.5M for last 2 years See 7(a)