The SBA 7(a) Program is available for most SBA financing requests and can be utilized for a variety of purposes including new business set up, existing business acquisition, commercial real estate purchase, as well as debt refinance. 
Highlights of Program
  • 100% Loan-to-Cost Financing
  • Below-Market, Fixed Interest Rates 
  • Longer Loan Amortizations
- The SBA 7(a) program provides maximum loan amounts of $5,000,000. 
- Maximum terms may vary according to financing purpose. 
- Non-Real Estate purchase transaction maximum term is 10 years fully amortized. 
- Commercial Real Estate purchase maximum term is 25 years fully amortized. 
- 85% Guaranty in effect with loan amounts of less than $150,000. 
- 75% Guaranty in effect with loan amounts in excess of $150,000. 
- Commercial Real Estate refinance with competitive interest rates. 
- Small Business expansion, with leasehold financing as well as working capital. 
- Equipment and machinery purchase financing is available. 
- Small Business debt refinance (from existing Non-SBA financing) is available. 
- Inventory purchase with competitive rates. 
- Up to 90% financing is available and is subject to credit decision. 
- Eligibility will be determined by satisfaction of established SBA guidelines.  


Projection Loan Amount: $1,000,000
Loan Structure: 100% SBA Loan
Down Payment: 15% = $150,000
Loan Amount: $850,000
Loan Terms: 25 years Fully Amortized Loan - No due date
Interest Rate: Prime rate + 1.5% = 4.75%
Fee Structure: SBA guaranty fee of 2.25% and Bank packaging fee
Pre-Payment Penalty: 3 years (5-3-1-0%)
Early Pay-Down: Up to 20% of the outstanding balance annually
Collateral Requirement: 1st TD on subject property, UCC on subject business, Additional collateral required

The SBA 504 Program is available for larger financing requests exceeding the SBA borrower financing limit of $5,000,000. 
- SBA 504 program is an economic development program designed by the US SBA to assist in the financing of 
   fixed assets for small businesses. 
- SBA 504 financing requirements include participation with a third party lender, with maximum financing of 
   50% of the requested loan amount provided by Bank. 
- Minimum down payment of 10% required. 
SBA 504 financing is provided if the total financing request exceeds the SBA established limit of $5,000,000.
Eligibility will be determined by satisfaction of established SBA guidelines. 

Eligible Borrowers:
- For-profit, non-publicly traded businesses.
- Tangible business net worth not to exceed $15 million.
- Average net income of the business not to exceed $5 million over the previous two years.
- Personal liquidity of each principal/guarantor not to exceed the total project costs of the proposed 504 loan.
- Ownership must be comprised of 51% U.S. citizens or Legal Permanent Residents.

Building Acquisition $  10,000,000
Improvements $                 -
SBA/CDC Fees $       108,000
Total Project Cost $  10,108,000
Monthly Annual
Source of FundsAmountRatesMaturity Collateral PaymentPayment
Bank (50%) $     5,000,0004.30%10 Year (25 Yr Amortization)1st Deed $  27,227 $  326,725
SBA 504 Loan (40%) $     4,180,0004.33%20 Year (Full Amortization)2nd Deed $  25,614 $  307,365
Borrower (10%) $     1,000,000
Total (100%) $   10,108,000 $  52,841 $  634,090
RatesBank:Rate, Terms and Payment are Estimated and will be provided by Bank.
SBA 504:Rates is FIXED at the time of the debenture sale.
FeesBank:Private lender fees vary depending on lender policy.
SBA 504:SBA/CDC processing fees are included in the SBA 504 Loan. 
MISC:Related costs may be included in the SBA 504 Loan including: 
Appraisal, environmental report (if required), and escrow closing costs
(including insurance and legal closing costs).
Collateral90% financing generally does not require additional collateral.
HBS Finance will perform a free pre-qualification for prospective buyers upon receiving complete financial information. 

For more information, contact us at (310) 356-6500