SBA Loan Quick Reference Guide
| 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) |
