EasySBA

Find Answers to Common Questions and Learn More About SBA Eligibility

Multi-family / apartments
Gambling, financial, pyramid sales, loan packagers, real estate investment firms, any sexual nature, political or lobbying activity, speculative, passive or illegal businesses
Non-profits

Subject property must be occupied by a minimum of 51% of your business
Ground up construction, purchase, rate/term refinance, or cash out refinance
Property type examples: hotels, restaurants, office, mixed use, retail, gas stations, auto body, car washes, day care, medical office, assisted living, warehouse, manufacturing, self storage, industrial, etc

Cannot have defaulted on a government loan previously
Cannot be late on child support (needs to be current within 60 days)
Cannot be incarcerated, on probation or parole, or under indictment for a felony
Taxes needs to be current or on a payment plan
Typically a minimum FICO score of 680 or higher
Prior ownership or management experience
All loans are full recourse and require full personal guarantees by any individual or entity holding 20% or more ownership interest
Lenders can take 2nd lien on home and/or require an affiliate to pledge a corporate guarantee

504 loans are provided by a lender and a CDC
Lender typically provides 50% of funds on 1st TD loan
CDC typically provides 30-40% of funds on 2nd TD loan
Client has 10-20% down payment
Interim Financing - typically it takes 45-90 after execution of the lender's 1st TD loan for the SBA to fund the SBA 2nd TD loan. To facilitate a smooth closing, the lender will provide an interim loan for ~90 days that is paid off with the SBA Debenture

Lender's portion is typically 25 year term and amortization, fixed rate, 5 year prepayment penalty
CDC's portion is typically 25 year term and amortization, fixed rate, 10 year declining prepayment penalty
Client gets a blended rate

Multi-family / apartments
Gambling, financial, pyramid sales, loan packagers, real estate investment firms, any sexual nature, political or lobbying activity, speculative, passive or illegal businesses
Non-profits

Subject property must be occupied by a minimum of 51% of your business
Ground up construction, purchase, rate/term refinance, or cash out refinance
Property type examples: hotels, restaurants, office, mixed use, retail, gas stations, auto body, car washes, day care, medical office, assisted living, warehouse, manufacturing, self storage, industrial, etc

Cannot have defaulted on a government loan previously
Cannot be late on child support (needs to be current within 60 days)
Cannot be incarcerated, on probation or parole, or under indictment for a felony
Taxes needs to be current or on a payment plan
Typically a minimum FICO score of 680 or higher
Prior ownership or management experience
All loans are full recourse and require full personal guarantees by any individual or entity holding 20% or more ownership interest
Lenders can take 2nd lien on home and/or require an affiliate to pledge a corporate guarantee

If business real estate is included: typically 25 year term and amortization, 3 year prepayment penalty
If no real estate is included: typically 10 year term and amortization, no prepayment penalty
Most lenders do a variable rate of prime + a spread; some lender's offer a fixed rate