Pacific Capital Lending offers SBA loans for the purposes of including business real estate purchase, construction, refinance, business acquisition, equipment purchase, and working capital.
SBA loans are tied to the lowest Wall Street Journal Prime Rate. Pacific Capital is competitive in pricing and cost. Moreover, we place a major focus of our business relationship on service and educating our clients. Yes our relationships matter. We use modern tools to close your loan in the fastest possible manner, while being committed to offering the respect and service that our clients deserve.
Our SBA business loan programs offer funding from $150,000 up to $5,000,000 to acquire property, an existing business, new business start-up, refinancing, or to consolidate and purchase fixed assets.
SBA Loan Benefits
-10%-30% down payment for business purchases
-As low as 10% down for owner user real estate and business purchases. All commercial real estate types eligible including mixed use, storage, hotels/motels, automotive, health care, pet, and automotive, dry cleaners, franchises, health clubs, restaurants etc.
-Fully amortized loans up to 25 years
-Business and debt refinance eligible
-Business and debt consolidation eligible
Fast Prequalification. Required documentation:
3 years business and personal taxes, personal financial statement, business debt schedule. Other documents may be needed upon initial review of loan request.
7(a) Loan Repayment Terms
The SBA’s loan programs are generally intended to encourage longer term small-business financing. However, actual loan maturities are based on the ability to repay, the purpose of the loan proceeds and the useful life of the assets financed. However, maximum loan maturities have been established: 25 years for real estate, up to 10 years for equipment (depending on the useful life of the equipment) and generally up to seven years for working capital. Short-term loans and revolving lines of credit are also available through the SBA to help small businesses meet their short-term and cyclical working capital needs.
Most 7(a) term loans are repaid with monthly payments of principal and interest. For fixed-rate loans, the payments stay the same because the interest rate is constant, whereas for variable rate loans the lender can require a different payment amount when the interest rate changes. Applicants can request that the lender establish the loan with interest-only payments during the start-up and expansion phases (when eligible) to allow the business time to generate income before it starts making full loan payments. Balloon payments or call provisions are not allowed on any 7(a) loan except SBA Express loans. The lender may not charge a prepayment penalty if the loan is paid off before maturity, but the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years.
The SBA expects every 7(a) loan to be fully secured, but the SBA will not decline a request to guarantee a loan if the only unfavorable factor is insufficient collateral, provided all available collateral is offered. This means every SBA loan is to be secured by all available assets (both business and personal) until the recovery value equals the loan amount or until all assets have been pledged (to the extent that they are reasonably available). Personal guarantees are required from all owners of 20 percent or more of the equity of the business, and lenders can require personal guarantees of owners with less than 20 percent ownership. Liens on personal assets of the principals may be required.
7(a) Loan Program Eligibility
SBA provides loans to businesses; so the requirements of eligibility are based on specific aspects of the business and its principals. As such, the key factors of eligibility are based on what the business does to receive its income, the character of its ownership and where the business operates.
SBA generally does not specify what businesses are eligible. Rather, the agency outlines what businesses are not eligible. However, there are some universally applicable requirements. To be eligible for assistance, businesses must:
The SBA 504 Loan Program
The CDC/504 Loan Program provides financing for major fixed assets such as equipment or real estate.
Use of CDC/504 Loan Proceeds
A 504 loan can be used for:
A 504 loan cannot be used for:
CDC/504 Loan Amounts, Interest Rates & Fees
Maximum loan amounts are determined by how funds will be used based on which goal they support from the list below:
Generally, the project assets being financed are used as collateral. Personal guarantees of the principal owners are also required.
Maturity terms of 10 and 20 years are available.
Interest rates on 504 loans are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues.
Fees total approximately 3 percent of the debenture and may be financed with the loan.