Purpose: To finance the purchase of real estate, machinery and equipment, or inventory and accounts receivable
Loan Amount: $750,000 (actual loan may be greater)
Guarantee Percentage: up to 75%
Interest Rates: Set by Comerica SBA specialist (maximum loan maturities set by SBA policy)
Terms: Set by Comerica SBA specialist (maximum loan rates set by SBA policy)
Eligibility: SBA guarantee approval, personal guarantees of principals with 20% or more ownership required.
Restrictions: Certain types of business activities are excluded from SBA financing; check with a Comerica SBA specialist for details
Purpose: Long-term financing for the acquisition/expansion of real estate, machinery and equipment. On projects requiring construction financing, refer to participating bank.
Guarantee Amounts: $50,000 minimum amount. Typical loan structure is usually:
- 50% - Bank with first position on collateral
- 40% - SBA debenture with second position on collateral
- 10% - Owner equity
Terms:
- Machinery and Equipment: 10 years
- Real Estate: 20 years
Interest Rates: SBA offers a fixed rate, determined at the time of the debenture sale. Comerica's rate is based on the prevailing market conditions.
Fees:
- Three percent (3%) processing fee on the SBA's portion - typically financed in the SBA debenture
- Six tenths of one percent (.006 or .6%) annual servicing fee on the outstanding loan balance of the SBA's portion
- Loan subject to legal fees by SBA
- Loan is subject to prepayment penalties
Eligibility: Because it is a public agency using taxpayer funds, SBA will not guarantee loans to:
- - Financial institutions
- Gambling or speculative facilities
- Real estate companies where properties are held for investment or sale purposes
- Recreation facilities that are not open to the public
- Not-for-profit organizations.
Also, certain operations, such as wholesaling, retailing and manufacturing are subject to size-standard criteria including annual sales volume and number of employees.
