Because this loan is guaranteed by the U.S. Small Business Administration, a smaller amount of collateral is typically required to obtain the loan from the bank. Eligible uses may include the purchase, construction, or improvement of fixed assets (real estate and/or equipment) and to refinance existing debt. It can be a particularly good option for businesses that want to preserve working capital, but want to make improvements today instead of postponing plans for years until additional capital can be generated.
- Privately held, for-profit businesses with less than $15 million in tangible net worth and a two-year average of less than $5 million in annual after-tax profits
- Businesses that conduct, or plan to conduct, business within the U.S.
- Property must be owner-occupied or owned by an eligible passive company
- Project must promote economic development.
- Long-term, fixed-rate financing for 20 years
- Low 10% down payment requirement
- Short and simple documentation process; quick turnaround and closing