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The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA (up to 85% of loan) -- the Agency has no funds for direct lending or grants. A maximum loan amount of $5 million has been established. However, the maximum guaranty is generally $13.75 million. Use of proceeds: purchase of real estate, construction, renovation or leasehold improvements, acquisition of furniture, fixtures, machinery and equipment; purchase of inventory and working capital.
| Term | Fees | Interest |
|---|---|---|
| Twenty-five (25) years for real estate and equipment; and, generally seven (7) years for working capital. | $0 to $150,000 loan: 2% of guaranty.$150,001 to $700,000 3% of guaranty. $700,000 to $1,00,000 3.5% of guaranty. $1,000,000 plus additional 0.25 % | $50,000 plus loan - maximum prime plus 2.25% (2.75% if 7 plus years). $25 to $50,000 - maximum prime plus 3.25% (3.75% if 7 plus years). $0 to $25,000 - maximum. prime plus 4.25% (4.75 if 7 plus years). |
| Interest Type | Amount $ | Eligibility/Requirements |
|---|---|---|
| Fixed / variable | Maximum Loan $5,000,000 | Determined by four factors:
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