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SBA (Small Business Administration) Guaranteed Loans-7(a) Program
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SBA commercial mortgage loans are available for most types of commercial properties and have the following features:
Property Types:
- Retail
- Office
- Industrial/Light Manufacturing
- Motel
- Restaurant
- Gas Station
- C-Store
- Day Care
- Assisted Living
- All other owner-occupied commercial properties considered
Loan to Value:
80% LTV or higher depending on collateral
Loan Amounts:
$300,000 to $10,000,000
Loan Term:
up to 25 years, depending on use of proceeds
Interest Rate Information
Interest rate generally is based on a floating rate tied to the Prime Rate.
Contact us for estimated pricing based on that day's index.
Prepayment Penalty
The SBA 7a program has a very short prepayment penalty period of 3 years. The penalty is 5% during the first year, 3% during the second year and 1% during the third year.
Refinancing
Refinancing for business purposes always is permitted.
Secondary Financing
Permitted in some circumstances. 90% Combined LTV (CLTV) is generally the maximum.
Other Features
The borrower can combine his mortgage loan request with funding for other business purposes such as equipment, inventory, working capital, etc.
Additional Information
For additional information specifically related to SBA loans, please visit our affiliate's website at www.sbaloangroup.com.
If you want to learn more about the different SBA programs, here is a CHART of differences between the 7(a) and 504 programs.
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