What is an SBA Loan?

The Small Business Administration (“SBA”) is a United States government agency that provides support to entrepreneurs and small businesses.

The SBA was created on July 30, 1953, by President Eisenhower with the signing of the Small Business Act.  The mission of the Small Business Administration is “to aid, counsel, assist and protect Interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of the nation”.

The SBA 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses by setting guidelines for loans made by its partnering lenders, such as Centerstone SBA Lending.

SBA-guaranteed loans range from small to large, can be used for most business purposes, including long-term fixed assets and operating capital, and generally have rates and fees that are comparable to non-guaranteed loans.  The terms and conditions may vary by the type of loan and must meet SBA eligibility requirements.

Centerstone SBA Lending, led by a seasoned management team, will walk you through the entire process to provide the right financing solution attentive to the unique characteristics of the small business and the owner.

Benefits of an SBA Loan

  • Longer Term (Fully Amortized loans)
  • Lower Monthly Payment
  • Higher Loan to Value
  • Lower Down Payment than Conventional Loans
  • No Balloon Payment
  • Up to 90% Financing on Real Estate Purchase and Refinance

SBA Loan Amount

  • Up to $5,000,000

SBA Loan Equity Injection

  • 0% to 25%
  • Eligible sources for Equity Injection are Savings, Home Equity, Outside investor or Business partners, 401k or IRA, or a Seller’s note

Required Documents

The SBA Loan Application process can be a long grind, especially for those that are new to the process.
We fully understand this and make sure to request only necessary documents. To help you prepare, the following initial documents are commonly required for loan request review:

  • Application
  • 3 years of Business Tax Returns
  • 3 years of Personal Tax Returns
  • Personal Financial Statement
  • Business Debt Schedule

SBA Loan Uses

  • Debt Refinancing: Convert high-interest debt into one monthly payment with an affordable rate
  • Purchase Inventory
  • Expand Business through marketing, website updates, development, launch of new products and/or additional locations
  • Real Estate Purchase of owner-occupied existing business location
  • Permanent Working Capital
  • Other uses include Business Acquisition and Startup Business