These loan programs are guaranteed by U.S. Small Business Administration and provide an effective option for small business financing that may not qualified under standard programs without guaranties. Benefits of this SBA Program include longer terms and lower down payments for the purchase of assets.

7(a) Loan Program

This program provides term loans for the purchase of business real estate or business assets.

• Purpose: Acquisition of fixed assets; working capital; start-up financing.
• Government Guarantee: 75% to 85%.
• Loan Amount: Loans to a maximum of $5,000,000.
• Maturity: 5 to 7 years for working capital, up to 10 years for equipment, and up to 25 years for real estate.
• Interest Rate: Variable and fixed rates are available.
• Collateral: Real estate and personal assets.
• Eligibility: Certain size limitations are applied according to the borrower's industry type.

504 Program

This program is specially designed for the purchase of fixed assets at lower down payments and lower interest rates. Typically, the Bank makes a senior lien real estate loan for 50% of the purchase price, while CDC (backed by the SBA) covers up to 40% of the purchase price with a junior lien loan; therefore the borrower may be required to provide a down-payment as low as 10% of the cost.

• Purpose: Fixed assets only - no working capital.
• Loan Amount: Loans to a maximum of $5,000,000.
• Maturity: 10 or 20 years.
• Interest Rate: Lower than for conventional loans.
• Collateral: Real estate.

Small Business Express Loan

The Small Business Express Loan is designed to assist businesses with expedited processing. To meet the customer's timing need, the Bank requires only a Commercial Credit Application (including Form 1919 for the principals, personal history and management resume), financial statements, 3 years tax returns and the last 12 months of the business checking account monthly statements.

• Purpose: Assist businesses with quick funding.
• Term: 60-month installment loan or 12-month line of credit, depending on the borrower's need.
• Interest rate: Variable based on the Prime Rate.
• Maximum Amount: $350,000 ($1,000,000 through September 26, 2011).

For further information, please contact one of our lenders.

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