SBA 7(a) LOAN PROGRAM

SMALL BUSINESS ADMINSITRATION ("SBA") LOANS

The Small Business Administration ("SBA") was established by Congress in 1953 to foster economic development and provide financial assistance to small businesses.

Here at Community Bank of Nevada we are dedicated to small business. Our SBA Programs allow us to offer loans for a variety of small business financing needs. Through a relationship with the Small Business Administration, Community Bank of Nevada is able to offer secured real estate financing with as little as 10% down for construction, or purchase of owner-occupied real estate.

Community Bank of Nevada has been designated as a member of SBA's Preferred Lender Program ("PLP"). This means that Community Bank of Nevada can approve certain loan requests on behalf of the SBA, which results in a quicker turn around time for loan approvals and funding. The SBA's Preferred Lender Program is designed for our lending partners that have a valued expertise of SBA lending products.

There are two SBA lending programs in which Community Bank of Nevada is authorized to participate:

SBA 7(a) / SBAExpress
SBA 504

Eligibility:

• Management must be experienced and of good character.

• Must be able to demonstrate the ability to repay the loan with cash flow from the business operations

• Must have adequate collateral

Type of Business:

• Business must be organized for profit

• Business must be a "small" business as defined by the SBA's size standards

• Certain industries are not eligible for SBA financing (see your Community Bank of Nevada SBA Specialist for more details)

Loan Purpose/Use of Loan Proceeds:

• Purchase an Existing Business

• Expand an Existing Business

• Equipment and Machinery Purchase

• Inventory Purchase

• Tenant Improvements

• Working Capital

• Start a Franchise or New Business

Equity Requirements:

• 25% - 50% for Start-Up Businesses

• Up to 100% financing depending on the length of time in business and equity investment in the business

Loan Amounts:

• Up to $2,000,000.00

Loan Repayment Terms:

• Up to 10 years for purchase of fixed assets

• Up to 7 years for working capital

Advantages of an SBA 7(a) Loan:

• Lower down-payment requirements and longer terms, which mean affordable monthly payments

back to top

Under the SBA 504 loan program, long term loans to assist small businesses are made by a combination of private lenders and investors utilizing partial guarantees from the Small Business Administration. An approved lender makes the first lien loan and Certified Development Corporations are utilized to issue the secondary financing.

Eligibility:

• Management must be experienced and of good character.

• Must be able to demonstrate the ability to repay the loan with cash flow from the business operations

• Must have adequate collateral

Type of Business:

• Business must be organized for profit

• Business must be a "small" business as defined by the SBA's size standards

• Certain industries are not eligible for SBA financing (see your Community Bank of Nevada SBA Specialist for more details)

Loan Purpose/Use of Loan Proceeds:

• Purchase owner-occupied commercial real estate*

• Construct owner-occupied commercial real estate**

• Purchase of Equipment and Machinery with useful life of 10 years or more

*Owner-occupied is defined as occupying 51% of the total rentable space of the property.
**Owner-occupied is defined as occupying 60% of the total rentable space of the property (may not sub-lease more than 10% of the total rentable space long term).

Equity Requirements:

• 10% for existing businesses

• Up to 20% for special-use properties or businesses that have been open for less than two years

Loan Amounts:

• Up to $5,000,000.00, total project

Loan Repayment Terms:

• Up to 10 years for purchase of fixed assets

• Up to 25 years for purchase or construction of commercial real estate

Advantages of an SBA 504 Loan:

• Lower down-payment requirements

• Long-term fixed interest rates, typically at below market rates

• Longer terms with affordable monthly payments

• Fully amortizing loans - no balloon payments due

---