SBA Loans for Commercial Real Estate
$300K to $5MM
Why go with an SBA loan through ICS?
Up to 90% LTV
Purchase, Refinance & Ground-Up Construction
Owner-user properties only
Fixed & Floating Rates
Pay No Broker Points
SBA Loan - How it Works
The SBA 7(a) Loan Program, SBA’s primary business loan program, provides Borrowers the financial help they need to purchase, refinance, and construction commercial real estate properties for their own business use, including:
- Acquiring, refinancing, or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installation of machinery and equipment
- Purchasing furniture, fixtures, and supplies
- Changes of ownership (complete or partial)
- Multi-purpose loans, including any of the above
The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.
Eligibility?
To be eligible for 7(a) loan assistance, businesses must:
- Be an operating business.
- Operate for profit.
- Be located in the U.S.
- Be small under SBA Size Requirements
- Not be a type of ineligible business
- Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources.
- Be creditworthy and demonstrate a reasonable ability to repay the loan.
How do I pay back my 7(a) loan?
Loan repayment terms vary according to several factors.
- Most 7(a) term loans are repaid with monthly payments of principal and interest from the cash flow of the business.
- Payments stay the same for fixed-rate loans because the interest rate is constant.
- For variable rate loans, the lender may require a different payment amount when the interest rate changes.
SBA Loan Eligibility, Terms, Fees & More
Let's break down the SBA loan further.
SBA Loan Amounts: SBA 7(a) loans have a maximum of $5 million.SBA Express loans have a maximum of $350,000.
SBA Loan Rates: Interest rates for 7(a) loans are negotiated between the borrower and the lender, but are subject to SBA maximums, which are pegged to the prime rate or an optional peg rate. Interest rates may be fixed or variable.
SBA Loan Terms & Maturity: Maturity terms for a 7(a) loan depend largely on the ability of the applicant to repay and the purpose of the loan. Below is a list of maximums based on purpose:
- 25 years for real estate
- 10 years for equipment
- 7 years for working capital
SBA Loan Fees: Fees are based on the guaranteed dollar amount and the maturity of the loan. These fees can sometimes be rolled into the overall loan.
SBA Loan Requirements & Eligibility: Businesses seeking a SBA 7a loan must meet the following requirements:
- Must be for-profit.
- Must be located in and do business within the U.S.
- Cannot be a business that is considered ineligible for assistance by the SBA. A full list of ineligible businesses is available on the SBA website.
- Must have a satisfactory FICO SBSS score.
- Must have a feasible business plan.
- Cannot have access to alternative funds from other sources.