Business Brokerage,sell a business,buy a business,sell business in Florida,sell business in Tampa,Florida
Ivan Lilov / Transworld Business Advisors Direct: 813-215-6801 / Fax: 866-206-2625 / Email: IvanBusinessBroker@Gmail.com

 

SBA 7A Loan Guaranty Program

Click Here to search the Small Business Administration website for business planning information and resources.

Purpose:
The SBA Loan Guaranty Program provides the Bank up to 85% guaranty on Long term loans when the proceeds of the loan are used for fixed asset purchases, working capital, or the refinance of existing debts for owner-occupied business.

Use of Proceeds:
• Up to 90% financing for the purchase of land and /or building.
• Up to 80% financing for the purchase of machinery and equipment.
• Up to 90% financing for the expansion of an existing facility.
• Can refinance 100% of existing debt under certain conditions.
• Up to 80% financing for the purchase of an existing business.
• Can finance working capital and closing costs in conjunction with the above.

Eligible Businesses:
• Operating, for profit Corporations, Limited Liability Corporations, Partnerships. Or Sole Proprietorships.
• Business in existence for minimum of two years.

Target Loan Size:
• Minimum loan of $150,000.
• Maximum loan of $2,000,000.
• Loans above $2,000,000 will be looked at using the SBA's "piggy back" loan program.
• The maximum loan amount under the "piggy Back" program is $3,500,000.

Loan Structure:
• Up to 25 year financing for real estate acquisitions, real estate refinances land purchases or construction loan take-outs.
• Up to 10 year financing for the purchase of an existing business.
• Up to 10 year financing for the purchase of machinery and equipment.
• Up to 7 year financing on working capital, and closing costs.

Interest Rates:
• Loans will be priced on a variable basis, tied to the New York Prime Rate and will adjust quarterly.
• Minimum pricing will be at New York Prime + 1.50%
• Maximum pricing will be at New York Prime + 2.75%

Qualifying Criteria:
• Owner must be actively involved in the business operations.
• Business must have adequate debt service coverage based on historical earnings.
• Business must have an adequate debt to worth based on the adjustments to the pro forma balance sheet using the benefits of the new loan.
• Borrower's business must occupy no less than 51% of an existing building and no less than 67% of the "to be built" facility.
• Alter Ego Ownership of the company's real estate is allowed.
• Credit score of 660 or higher.
• Experience in the type of business you are attempting to acquire.
• At least 20% down from money on hand (there are exceptions).

Collateral:
• No unsecured loans are available under this program.
• Goodwill is considered to be an asset when a business is being purchased.
• If the SBA loan is under-collateralized based on the SBA Liquidation values, the guarantor may be required to collateralized his/her primary residence by utilizing a 2nd or 3rd mortgage
.

Fees:
• The SBA does not allow the Bank to charge the borrower points on a 7A guaranteed loan, unless it involves a construction loan. The SBA charges a fee, which is based on the size of the loan guarantee.
• The bank will charge a packaging fee of $1,500 on all loans

Please consult professional services when making a business acquisition.

 



Home  |  New Bisuness Listing Alerts  |  Our Featured Listings  |  Buy a Business  |  Sell a Business  |  MLS search  |  GREEN CARD LOTTERY  |  401K To Buy A Business  |  E2 Visa Information  |  Tax Planning For Business Buyers And Sellers  |  EB-5 Immigrant Investor Visa  |  SBA Loan Information  |  Due Diligence  |  FREE SOLD BUSINESS REPORT  |  MEDICAL SOLD BUSINESSES  |  HOW TO SELL A BUSINESS   |  EC Economic News  |  About Florida  |  Economy Insurance  |  Ivan's Blog  |  Registered Buyers  |  Contact Me Today  |  Why Hire a Professional?  |  Health and Nutrition  |  Art and Design  |  Do not pay too much  |  Dinner Party  |  Abou Ivan Dealmaker  |  Home - Style 1  |  News  |  Home Styling  |  Show Home Photos  |  Home Search - Style 1  |  Smooth Home Purchase  |  Avoid Buyer Errors  |  Your First Home  |  Sample Splash Page  |  Selling Your Home  |  Common Selling Mistakes  |  Selling Price  |  Buyer's Toolkit  |  Tile Your Backsplash  |  Protect Your Pet at Home  |  Stain Removal  |  Sweet Smell of a Sale  |  Make yourself Scarce  |  Seller's Toolkit  |  Moving your Pets  |  Tips for grilling  |  Backyard Composting  |  I WANT TO BUY INSURANCE COMPANY  |  INSURNACE COMPANY FOR SALE  |  I WANT TO BUY INDEPENDENT INSURANCE AGENCY 4SALE  |  FAST FOOD FRANCHISE RESTAURANT FOR SALE IN A MALL  |  ASSET SALE LIQUOR STORE PASCO COUNTY  |  5 DAYS OFFICE BUILDING DELI FOR SALE IN TAMPA  |  near USF  Franchise Ice Cream/Yogurt Store 4Sale  |  ICE CREAM/YOUGURT FRANCHISE STORE 4SALE BUSY MALL  |  BUSINESS FOR SALE IN fLORIDA  |  BUSINESS FOR SALE IN FLORIDA  |  MILLION DOLLAR GROCERY STORE 4SALE  |  LEASE ASSIGNMENT OF BUSINESS FOR SALE IN MALL 
Non Disclosure Form  |  Search Businesses for Sale
 

Privacy Policy  |  Site Map  |  Profile  |  Sign In

Choose language: