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SBA Loans
Many business owners are unaware that they are eligible to obtain financing through the SBA or they are
afraid of the amount of time or expense associated with obtaining an SBA loan for their business.
Desert Hills Bank caters to the needs of small businesses and is a specialist at all types of SBA loan
products. The Business Banking Specialists at Desert Hills Bank have over 15 years experience with these products and have closed hundreds SBA loans. Your Desert Hills Business Banker
will manage the entire loan application process for you and help to expedite your loan closing in the most efficient manner. They are able to cut through the red tape many times
associated with government loan programs to help you spend your time growing your business.
Most Businesses are Eligible for SBA Financing
Many businesses are eligible for SBA products and don't realize it. Depending on industry, companies
with as many as 1500 employees and with sales as high as $27.5 million may take advantage of the benefits offered through SBA loan products. The SBA also guarantees the loans for the
smallest of businesses.
Desert Hills Bank Participates in a variety of SBA products, including:
- SBA 7(A) loan program
- SBA LowDoc Program
- SBA 504 Program
Under these programs, the SBA either guarantees a portion of the loan or participates with the bank in
the funding of the loan.
SBA 7(a) and LowDoc Loans
SBA 7(a) loans and those through the LowDoc program are fully amortizing. For loans under 15 years
in duration, there are no prepayment fees for early payment. Subsequently, you are able to take advantage of lower payments afforded through the longer-term loans without being penalized
for successful business and cash flow growth.
SBA 7(a) and LowDoc Loans may be utilized for the following purposes and terms:
- Working Capital (up to 7 years)
- Machinery and Equipment (up to 10 years)
- Real Estate purchase or construction (up to 25 years)
- Leasehold improvements
- Business Acquisitions
- Refinance existing conventional business loans that carry higher rates of interest and higher
monthly payments
- Other Business Needs
Again, all the above loans are fully amortizing and do not balloon. There are no strict borrowing
base restrictions or daily reporting associated with many conventional loans. There is no minimum loan size under these programs and SBA loans may be as large as $2 million.
SBA 504 Loans
The SBA 504 Loan Program is focused on financing required with the acquisition of long-term fixed assets
including real estate and large equipment. A portion of the SBA 504 has a fixed rate of interest lower than that offered under conventional commercial loans and this below market rate is
fixed for as long as 20 years.
Typically, an SBA 504 project financing structure is as follows:
- Conventional Bank Loan 50%
- SBA 504 Loan 40%
- Borrower Equity Contribution 10%
SBA 504 loans are designed to finance owner-occupied properties and may not be used to finance investment
properties.
For more information about SBA loans contact Michael Theile at (602) 324-6772.
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