SBA Loans
M&A Financing Services have been designated as a Preferred Financial Services company by SBA lenders to have loans processed more quickly and efficiently than many others. There are a number of advantages to an SBA loan, including longer terms, no points and no balloon payments.
Who is Eligible for an SBA Loan?
Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses.
Loan Qualifications
- Purchase real estate, equipment, leaseholds refinance: real estate, equipment, debt consolidation Business Acquisition: purchase existing business, partner buyout, Start Up Business: franchise, professional, and expansion.
- SBA 7(A) Loan Size $350,000 to $5 million
- Equity injection up to 20%
- Debt Services Coverage 1.15x
- Equity may include seller note or gifted funds
Use of Proceeds
- Commercial real estate (purchases, construction, or refinance)
- Leasehold improvements
- Business expansions
- Machinery, equipment, furniture or fixtures
- Business acquisition
- Working capital (offered in conjunction with some of the above)
- Start-ups (ALL Franchises, Motels, Restaurants Gas Stations and C-Stores)
Other Credits Considerations
- Business must have adequate historic cash flow to cover the proposed debt
- Business debt to net worth must meet industry averages
- Borrowers must be actively involved in the day-to-day operation of the business
- Satisfactory personal credit histories are required for all principles and guarantors
- No past bankruptcies or felony arrests