SBA LOAN PROGRAMS
Alliance Business Capital specializes in SBA Loans for a wide variety of Automotive related property types including the following:
- Gas Stations with a Convenience Store
- Stand-alone Convenience Stores
- Auto Body Shops
- Auto Service Centers
- Car Washes
- Oil Change Centers
Our primary loan program is the SBA 7(a) loan program. We look at loans from $500,000 up to $5,000,000 under this loan program. Loan amounts higher than $5 Million up to $10 Million (exceptions up to $15 Million on a case by case basis) will be considered under the SBA 504 loan program.
SBA Loans General Guidelines
The SBA 7(a) loan program is the most popular loan program offered for small businesses throughout the U.S. The below table gives general information on the 7(a) loan program. Should you have additional questions please do not hesitate to contact us.
|Maximum Loan Amount:||$5 Million|
|Minimum Loan Amount:||Alliance typically has a $500,000 minimum loan amount however, we will consider loan amounts down to $350,000 on a case by case basis|
|Use of Proceeds:||Expansion, New Construction, Purchase Equipment or FF&E, Purchase a New Building and Land, Lease-hold Improvements, Working Capital, Refinance Debt (for compelling reasons) Purchase Inventory, Start a Business|
|Who Qualifies:||Must be a for profit business & meet SBA size standards, show good character, credit, management, and ability to repay.
Must be an eligible type of business.
|Prepayment Penalty:||Typically a 3 year prepayment penalty will apply|
|Terms:||Up to 25 years on Real Estate
5-10 Years on Working Capital, Machinery and Equipment Loans
The SBA 504 Loan Programs involves 2 different loans and lenders. Typically a Bank will make a Conventional Loan for up to 50% of the total project costs and then a CDC will make a loan up to 30 to 35% , special use properties do not qualify for 90% financing, leaving the borrower to put up 15-20% down + closing costs.
The below chart will show you some of the SBA 504 loan criteria.
|Minimum Loan Amount:||Varies from Lender to Lender.
Alliance has a $2 Million minimum on a 504 loan
|Maximum Loan Amount:||$10 Million 1st Conventional
$5 Million CDC/SBA
|Use of Proceeds:||Long-term, fixed asset loans. Construction, New Purchase and Refinance (with compelling reason)|
|Loan Term:||Typically 10 - 20 Years|
|Who Qualifies:||For-profit businesses that do not exceed $15 Million in tangible net worth, and do not have an average two full fiscal net income over $5 Million .
Must be a minimum of 51% owner occupied on existing properties or 60% on new construction.
|Benefits to Borrower:||Lower down payment than a conventional loan, long term financing with no balloons
Business only financing is eligible under the SBA 7(a) loan program up to $5 Million, however the maximum term without real estate as collateral will generally be 10 years. If you own other real estate with equity the lender would be required to put a lien on that property in an effort to secure the loan.
Alliance is currently only considering Business Loans with a minimum loan amount of $750,000. You will need to be able to put in a cash injection equal to 20% of the total project costs or a 10% cash injection and other real estate with equity as additional collateral.
The following items will be needed in order to review your application for financing.
- Copy of Business Entity Documents (if an LLC we would need the Articles of Organization and the Operating Agreement)
- Most recent 3 years tax returns
- Current year to date profit and loss statement with balance sheet
- Copy of Fuel Supply Agreement
- Copy of any Franchise Documents if applicable
- Copy of any Environmental Reports
- Most recent 3 yeas Gallonage Reports
- Copy of any existing Appraisal
- If this is a refinance we will need a copy of your existing note to make sure the property is eligible for refinancing
Whenever possible please upload these documents to our online portal located at http://alliance.leapfile.net
If you have any questions please do not hesitate to contact us.