Small Business Administration (SBA) financing is just one of the exceptional products and services offered by Marine Bank. As the only locally-owned SBA Preferred Lender in Springfield, we have the authority to approve your SBA loan on the spot.
Designed for stable but growing small businesses (500 employees or less), SBA loans provide short and long-term financing with good interest rates and better terms than traditional bank loans. There are no balloon payments, prepayment penalties, application fees or points permitted with SBA loans. And repayment plans are tailored to fit your needs.
SBA loans may be used to expand or renovate facilities, purchase machinery or equipment, finance receivables and augment working capital, finance seasonal lines of credit or refinance existing debt (with a compelling reason), construct commercial buildings, and purchase land or existing buildings.
Terms
The length of time for repayment of an SBA loan depends on the use of the proceeds and the ability of your business to repay - usually up to 7 years for working capital, 10 years for equipment and up to 25 years for a real estate purchase or renovation.
Collateral
To secure your SBA loan you must pledge sufficient assets, to the extent that they are reasonably available. Personal guaranties are required from all the principal owners of the business. However, in most cases a loan will not be declined where insufficient collateral is the only unfavorable factor.
Eligibility
Your business must be operated for profit and be within the size standards set by the SBA to be eligible for an SBA loan. The business qualifies as a small business based on the average number of employees (less than 500) during the preceding 12 months or on sales averaged over the preceding three years. Over 90% of al businesses are considered small. Loans cannot be made to businesses engaged in speculation or investment.
Getting Started
In order to be considered for an SBA loan, Marine Bank will need the following information from you:
- Purpose of the loan
- History of your business
- Financial statements for the past three years (for existing businesses only)
- Personal tax returns for the past three years
- Schedule of term debts (for existing businesses only)
- Aging of accounts receivable and payable (for existing businesses only)
- Projected opening day balance sheet (new businesses only)
- Lease details
- Amount of investment in the business by the owner(s)
- Projections of income, expenses and cash flow
- Signed personal financial statements
- Personal Resume(s)
A brief overview of some of the SBA's financial assistance programs:
- 7(A) Loan Guaranty Program - This is the primary loan program for the SBA. It reduces the risk to lenders by guaranteeing major portions of loans made to small businesses. This enables the lenders to provide financing to small businesses on terms otherwise unavailable. The eligibility requirements and credit criteria of the program are very broad in order to accommodate a wide range of financing needs.
- CAP Lines Program - This specialized program helps small businesses meet their short-term and cyclical needs. There are five short term loans (less than a year) under this program. Seasonal Line, Builders Line, Standard Asset-Based Line, and Small Asset-Based Line. A CAP Lines loan can be for any dollar amount (except the Small Asset-Based Line), and the SBA will guarantee 75% up to $750,000 and 80% on loans of $100,000 or less.
- 504 Certified Development Company Program - This program enables growing businesses to secure long-term, fixed-rate financing for major fixed assets, such as land or buildings. A certified development company (CDC) is a non-profit corporation set up to contribute to the economic development of its community or region. CDCs work with private-sector lenders to provide larger loans to small businesses through the use of SBA-guaranteed debentures.
For more information on these and other SBA financial assistance programs, please call (217) 726-0600. |
