SBA Backed Funds
The SBA serves the small business market by backing funds up to $5m bearing up to 75% of the risk, opening the door for small businesses to grab amazing rates and needed financing.
Because the government backs the loan, your business must meet stringent requirements. Sutton Capital helps you position your business to claim the funds you need.
You can secure an SBA backed loan to fund a real estate purchase, business acquisition or expansion, equipment purchases, debt consolidation and your working capital needs.
If owning real estate for your business seems out of reach, let us show you how SBA financing can make it affordable. With a vast network of SBA lenders at our fingertips, we’ll connect you with a SBA loan that fits your goals.
Say goodbye to restrictive lease terms and hello to boosting your asset portfolio. We can help you sort through the options and connect you with the right lender that fits the needs of your growing business.
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SBA Backed Equipment Loans
Equipment loans are some of the easiest approvals in the lending industry. That’s because commercial equipment, telecommunications hardware and commercial vehicles retain value. The asset itself serves as collateral, and so the business owner must only demonstrate cash flow and a legitimate business purpose to meet many lender requirements.
SBA backed equipment loans offer some of the lowest interest rates in the market. To be approved, borrowers must show three years of business records and cash flow sufficient to pay off the equipment. Signed contracts for future work that the equipment will be used to fulfill are also contributors in any equipment loan. Increase capacity, deliver more goods and services, and grow.
SBA Backed Commercial Real Estate Loans
Some of the best rates in the market are available through SBA backed loans. These are primarily for owner/operators, meaning that your business utilizes 51% of the space for business operations and provides 49% or less as rental space to other businesses. For manufacturing, retail, warehousing and distribution, this can be an excellent option. Costs to maintain and upkeep the property can be less than renting from a commercial landlord, and businesses gain the flexibility to utilize the space for greatest advantage.
Find the right space and make it yours with a low-interest SBA backed real estate loan.
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SBA Backed Working Capital Loans
One of the greatest challenges for small business is access to sufficient funds to maintain operational flexibility. When opportunity knocks, do you have the money in reserve to hire new team members, purchase materials and supplies, and fulfill contracts without tightening your belt, hoping to make payroll, and manage through until your client remits payment? If not, an SBA backed working capital loan might make all the difference for your organization.
With low interest rates, these loans can provide you some of the lowest cost of money in the lending industry.
SBA Backed Construction Loans
Construction is one of the most risky investments for banks. Because construction jobs are completed with the involvement of so many architects, contractors and service providers, there are numerous stages of the project that can run into trouble. SBA backed construction loans reduce risk for the lender, but add requirements onto the loan type. A Certified Development Company will vet the construction process and contractors to evaluate risk and to lead the process of milestone evaluations along the way. Because of these requirements, you’ll need a history in the construction industry or an experienced construction project manager and lead contractor on your team. The approval process is also intensive. Despite these hurdles, SBA backed construction loans support construction projects across the country at an exceptional value.
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Loan Products
504
SBA 504
Primarily supporting development, construction and high value equipment loans, SBA 504 serves to help businesses build something new. In this loan type, two lenders participate in the process. Half of the funds come from a private lender, 40% are provided by a Certified Development Company, and the remaining 10% is paid by your business as a down payment.
SBA 7(a) loans
The U.S. Small Business Administration’s 7(a) loan provides funds for commercial real estate acquisition, equipment financing and working capital. These loans are provided through private lenders rather than banks or credit unions, and backed by the SBA.
7(a)
Loan Approval
To qualify for an SBA loan, a business must operate as a for-profit company. Annual net income should be less than $5M and total net worth must be under $15M. If you qualify, your business can get $5M in loan money to buy commercial real estate.
Navigating the SBA application and approval process can be daunting for the inexperienced business owner. You’ll need to provide personal and business records and a criminal background check for each business owner.
Neither the SBA 7(a) loan nor the SBA 504 loan can be obtained directly through the Small Business Administration. That’s why it’s important to partner with a qualified brokerage to secure the financing you need today.
Sutton Capital is experienced in the SBA approval process. Once a completed package is submitted, loan applications can take 45 days or longer to receive approval. One of the ways we help you expedite the borrowing process is to review your business objectives, aid you in targeting the right SBA backed lenders, and vet your package prior to submission. Because of our process, borrowers have a much higher approval process in this complex loan category.
Advantages
Financial backing by the SBA encourages lenders to approve who may otherwise decline a loan application. The SBA 7(a) loan is flexible and can be used for a variety of expenses. Get 90% financing or more for property, construction, and equipment needs. No balloon payments due at the end of the loan term.
Spread out the cost of real estate with a 25 year term.
A variety of loan options are available.
Get qualified, even if you’ve been turned down in the past.
Get working capital to cover cash flow gaps.
F.A.Q.’s
Q. How long does and SBA loan last ?
That depends on what the purpose of the loan is. Maximum terms are 25 years for real estate, 10 years for equipment, and 10 years for working capital or inventory.
Q. Why does the SBA care about my small business?
The SBA is tasked with encouraging economic growth by supporting small businesses. These businesses create jobs, build communities, and help local economies thrive.
Q. When is an SBA 7(a) or 504 Loan not a good fit?
If your business’s earnings are above the $5 million annual limit, you won’t qualify for either loan through the SBA. Let us utilize our broad lender network to find a solution that fits your business.
Q. Where do SBA 504 loan funds come from?
These loans are compiled from three main sources: 50% comes from a private lender, 40% is from a second lender guaranteed by the SBA, and the remaining 10% comes as a down payment from the borrower.