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SBA 7(a) Loan

At S1 Commercial Mortgage, we make SBA Loans Simple. Talk to a S1 Loan Consultant for the bullet points of this Government Backed Lending Program. We work with hundreds of Local Commercial banks that offer SBA 7(a) loans for the Purchase of Real Estate or General Business purposes. SBA 7(a) loans are typically “Floating Rate” loans with 25 year terms, but S1 Commercial also maintains relationships with lenders that offer 5 year fixed rate terms and you can borrow as much as 90% LTV.
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Use of Loan Proceeds : If you are awarded a 7(a) loan, you can use the loan proceeds to help finance a large variety of business purposes
Basic uses for 7(a) loan proceeds include:
  • To purchase real estate, including land and buildings
  • To construct a new building or renovate an existing building
  • Short-term working capital needs, including seasonal financing, inventory
  • To purchase equipment, machinery, furniture, fixtures, supplies or materials
  • To establish a new business or assist in the acquisition, of an existing business
  • To provide long-term working capital to use to pay operational expenses
7(a) Loan Amounts, Fees & Interest Rates
In general, the following provisions apply to all SBA 7(a) loans
Loan Amounts
7(a) loans have a maximum loan amount of $5 million. SBA does not set a minimum loan amount. The average 7(a) loan amount in fiscal year 2012 was $337,730.

Loans guaranteed by the SBA are assessed a guarantee fee. This fee is based on the loan’s maturity and the dollar amount guaranteed, not the total loan amount. The funds to reimburse the lender can be included in the overall loan proceeds.
On loans with maturities of more than one year, the normal fee is 3 percent of the SBA-guaranteed portion on loans of $150,000 to $700,000, and 3.5 percent on loans of more than $700,000. There is also an additional fee of 0.25 percent on any guaranteed portion of more than $1 million.

We offer Variable Rate 7(a) loans as well as 3 and 5 year Fixed-Rate 7(a) loans. Amortization terms of 10-25 Years. SBA Guarantee fees can be added to Mortgage Loan. Prepayment penalty is 3%, 2%, 1% declining.

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