A Small Business Administration (SBA) Loan offers longer terms and fewer collateral restrictions than conventional bank loans because the SBA guarantees it to the bank. This type of loan is ideal if you plan to start or expand a small business, and Capital Bank can help you qualify quickly based on our experience with this government agency.
|7A Loans||504 Loans|
|Description||Provides long-term financing via Term Loan for a variety of projects, including expansion/renovation, purchasing new equipment, starting a business, buying real estate, access to working capital, and refinancing.||Long-term, fixed-asset loans that are appropriate for needs like buying commercial real estate or constructing/renovating facilities.|
|Max Loan Amount||$5 million||$5 million|
|Max Term||Generally, working capital and machinery/equipment (not to exceed life of equipment) is 10 years; real estate is 25 years. We can use a blended term based on the different use of proceeds.||CDC Loan: 10- or 20-year term fixed interest rate.
Lender Loan: Unguaranteed financing may have a shorter term.
May be fixed or adjustable interest rate.
|Owner Equity/Liquidity||Minimum of 10%||Minimum of 10%|
|Collateral||Generally speaking, borrowers can assume that all assets financed with borrowed funds will be used as collateral for the loan. Depending on how much equity was contributed by the borrower toward the acquisition of these assets, the lender may require other business or personal assets as collateral.|
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