From veteran owned businesses, general contractors, to businesses that export, we have all areas covered for you
The Small Business Administration (SBA) and the United States Department of Agriculture (USDA) offer many unique loan products to help facilitate entrepreneurship and increase economic activity. These favorable loan programs incentivize lenders to work with businesses by offering loan guarantees against losses.
Veterans Advantage
Similar to the benefits given to veterans for VA mortgages, the SBA offers full or partial waivers on the SBA Guaranty Fee required on all SBA 7(a) loans. The SBA does this through their Veterans Advantage program for the following veterans:
- Honorably discharged veterans
- Active Duty Military service member eligible for the military’s Transition Assistance Program (TAP)
- Service-disabled veterans
- Reservists and/or active National Guard members
- Current spouse of any veteran, active duty service member, Reservist, National Guard member, or the widowed spouse of a service member who died while in service or as a result of a service-connected disability
SBA CAPLine Program
The SBA offers its lines of credit for all businesses normally for a maximum of 7 years, but under their CAPline program the maximum term can be increased up to 10 years for most businesses with the exception of the Builders CAPLine.
Below is a brief overview of the different CAPLine’s available.
- Seasonal CAPLine: Borrowers must use the loan proceeds solely to finance the seasonal increases of accounts receivable and inventory — or in some cases associated increased labor costs. It can be revolving or non-revolving.
- Contract CAPLine: This line finances the direct labor and material cost associated with performing assignable contracts. It can be revolving or non-revolving.
- Builders CAPLine: This line can finance direct labor and material costs for a small general contractor or builder constructing or renovating commercial or residential buildings. The building project serves as the collateral, and loans can be revolving or non-revolving.
- Working CAPline: This is an asset-based revolving line of credit for businesses unable to meet credit standards associated with long-term credit. It provides financing for cyclical growth, recurring and/or short-term needs. Repayment comes from converting short-term assets into cash, which is remitted to the lender. Businesses continually draw from this line of credit, based on existing assets, and repay as their cash cycle dictates. This line generally is used by businesses that provide credit to other businesses.
SBA Export Programs
The SBA offers 3 programs for businesses that export products and services called the Export Express program, the Export Working Capital Loan program, and the International Trade program.
The Export Express program provides exporters and lenders a streamlined method to obtain SBA-backed financing for loans and lines of credit up to $500,000. This line of credit has a maximum term of 7 years and the SBA increases the guaranty to lenders up to 90% for loans under $350,000 and 75% for loans between $350,001 to $500,000. This higher guarantee reduces lenders losses in case of loan default.
Export Working Capital loans are for businesses that can generate export sales and need additional working capital to support these sales with maximum loans up to 5 million dollars and comes with a 90% guarantee from the SBA in case of losses to the lender.
International Trade loans provide long-term financing to businesses that are expanding because of growing export sales, or that have been adversely affected by imports and need to modernize to meet foreign competition.
Businesses can use International Trade loans for fixed assets for construction, building, real estate equipment, and for working capital for export transactions with terms up to 25 years for real estate and 10 years for permanent working capital and equipment (up to the useful life).
Contact us today or call us at 239-766-0189!
NMLS #2160072 (Click here to access Consumer NMLS)
