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SBA Streamline

• Equipment Leasing • SBA Loans • Working Capital • Inventory Loans • Invoice Factoring • Contract / Purchase Order Financing • Cash Advances • Debt Restructuring • Loans for Women, Minorities, & Veterans • Start-Up / New Businesses

The SBA was created to ensure financing is made available for small businesses that traditionally had difficulty qualifying through conventional sources. Most of your larger banks have stricter underwriting requirements since SBA does not guarantee 100% of the loan. At Appian Commercial Lending we have multiple aggressive SBA sources that specialize in SBA loans which increase your chances for approval and much faster.

SBA Loan Programs:

  • SBA Advantage Loan & Line of credit
  • SBA Express Loan & Line of credit
  • SBA 7(A) Loan
  • SBA 7(A) Start Up Loan
  • SBA 504 Loan
  • Commercial Real Estate Purchases – Owner Occupied
  • Construction and Tenant Improvements
  • Business Acquisition
  • Partner Buyout
  • Business Expansion
  • Working Capital
  • Equipment
  • Business Start-Up

SBA Express Loans and Lines of Credit

With an SBA Express loan, your business can get faster turnaround on loan decisions and streamlined processing because we work direct with SBA Express Lenders who can approve these loans using a simplified SBA Express application. Designed to handle smaller SBA loan needs, SBA Express Loans can be issued as either a line of credit or a term loan. The max credit is $350,000 and you must be at least 2 years in business

Like many financing details, SBA Loan rules are not always easy to interpret. Often it's difficult for business owners know which program they should pursue. Here's a quick description of the differences between 504 and 7(a) loans.

If you already owns a business and your goal is to purchase real estate for that business then most likely an SBA 504 loan will be more helpful. These loans are specifically designed to help small business owners purchase real estate that they already occupy or plan to occupy after a purchase. The SBA's 504 loan program was created to help small business owners buy the real estate they're located in. Historically, owning the real estate a business occupies often generates more wealth than the business itself!

504 Loans are attractive because they're easier to qualify for than conventional mortgage products due to the Small Business Administration loan guarantee. Other financing options generally require 25% or more equity to be provided by the purchaser. Utilizing an SBA 504 loan can allow you to close a deal with as little as 10% down!

SBA 504 loans are not just attractive due to their low down payment requirements. You should also take not of the follow advantages:

  • Longer loan terms.
  • Lower closing costs.
  • No balloon payments.
  • Option to assume.
  • Quick closings possible.

If you are looking to acquire a business, buy new equipment or machinery, or refinance business debt then you should choose the SBA's 7(a) loan program. These loans are generally for items other than real estate but can include real estate in some instances.

The SBA 7(a) Loan Program is what most business owners envision when they think of an SBA loan. The loan, the most common loan the SBA guarantees, is used by individuals looking to acquire a small business or to finance their existing business.

The SBA has designated the following as acceptable uses for the proceeds of its 7(a) guaranteed loans:

  • Purchase of existing land or buildings.
  • Construction of new facilities or expand current facilities.
  • Acquisition of equipment, machinery, furniture, supplies, materials or fixtures.
  • Acquisition of an existing company.
  • Refinancing or consolidating business debt.
  • As long term working capital or to purchase inventory.
  • As short term working capital

1. A strong business plan. The SBA main loan criterion is your business' capacity to generate cash flow for the repayment the loan. They want to see if your business will actually earn enough to allow you to pay them. Hence, SBA requires the submission of a business plan.

Through the business plan, the SBA wants to see that you possess a clear understanding of the business you are in; that you have taken steps to research the market, and you have studied the prospects of the business. The SBA wants to see detailed financial plans on how the business can make money. More importantly, they want to know how you can repay the loan and whether the business can earn enough to at least cover the monthly payments.

2. The borrower must have a stake in the business. The SBA wants to see you invested in your own business. In SBA's view, business owners who have put their own money into the venture are much more likely to push hard for the success of their business. Depending on the loan program applied for, SBA requires the borrower to have invested between 25 to 50 percent of the amount requested. The SBA will not under­write 100% of the venture. Hence, if you are seeking a $100,000 loan, you should have already invested about $25,000 to $50,000 in the business.

3. A good personal credit rating. The credit history serves as a person's gauge for credit worthiness. Your track record in paying your bills will form an important component in the loan application process. The SBA partner banks, which provide the money, usually conduct a credit examination of the borrower then submit the results to SBA. SBA will also review the financial statements of your partner, officer or stockholder with 20 percent or more ownership.

SBA requires that you (and principals of the business) to personally guarantee the repayment of loan. Thus, you must show a history of honoring and repaying debts on time. Bankruptcies and poor credit history may lead to difficulty in availing SBA loans.

4. Collateral. Borrowers are required to provide collateral for SBA guaranteed loans. Collateral can be in the form of real estate or personal property. They want to be guaranteed that somewhere somehow they can get money back from you, in the event that you cannot repay the loan.

5. Your background and experience in the business. Management capability is a key criterion for banks and SBA-guaranteed loans. SBA and the banks want to ensure that the loan proceeds will be handled productively, and one way to ensure this is for you (or your management team) to know and understand the industry, the market and the business. They want to make sure that you -- or someone in your management team -- can make the business work.

If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you through the running of the business.

6. Condition or terms of loans. SBA would want to know three important things: how much money are you requesting, what will it be used for and for how long will it be needed? SBA and their conduit banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail.

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