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| SBA 7(a) Loan Program |
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For any business usage, including business real estate purchase, construction, refinance, business acquisition, equipment purchase, and working capital.
SBA loans are variable-rate loans tied to the lowest New York prime rate. HSBL offers the most competitive rates allowed under the program.
Our SBA business asset loan programs provide funds from $150,000 up to $2,000,000 to acquire property, an existing business, new business start-up, refinancing, or to consolidate and purchase fixed assets. Loan proceeds include leasehold improvements, equipment, inventory, goodwill, working capital, and closing costs.
Long repayment terms, up to 25 years without balloon payment
Reduced cash flow requirements, an opportunity to expand the business
Low down payment requirements
Competitive interest rates based on a spread over published Wall Street Journal Prime
Use of Proceeds
Business acquisition and start-up financing
Purchase, construction, or renovation of owner-occupied commercial real estate
Majority of space must be owner-occupied (51% for an existing building, 60% for new construction)
Purchase of fixed assets such as machinery and equipment
Refinance or consolidate existing debts, up to 100% financing on outstanding balances
Loan Proceeds also include inventory, working capital and closing costs
Terms
Amortization up to 10-25 years
Up to 90% financing on existing commercial real estate and up to 80% financing on existing business acquisition
Existing businesses must show fixed debt coverage of 1.20 times or greater for two years and interim
SBA 504 Program
The SBA 504 loan program is the U.S. Small Business Administration's long-term financing tool for economic development. The 504 program provides growing businesses with long-term, fixed-rate financing for fixed asset projects. The program allows businesses to contribute as little as 10% equity into a project.
For loans over $2,000,000, Hana Small Business Lending, Inc. can arrange financing through a combination financing loan or a participating loan.
Purchasing land and improvements including existing buildings
Grading, street improvements, utilities, parking lots, and landscaping
Constructing new facilities, modernizing, renovating, or converting existing facilities
Typical Financing Structure
50% 1st Trust Deed
40% CDC 2nd Trust Deed
*10% minimum down payment
*Minimum 15% down payment required for special purpose property
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