SBA Loan

Explore full benefits of Small Business Administration (SBA) guaranteed loans at UniBank.  As a designated SBA PLP (Preferred Lender Program) and Express lender, UniBank is dedicated to servicing the financial needs of small businesses and offers a full spectrum of SBA loan products. UniBank, as a PLP lender, is able to approve your loan based on credit standards without prior SBA approval. This means we provide much faster loan approvals compared to most SBA lenders in Washington State.

Benefits of SBA Loan Program:

  • Low down payment
  • Greater term (Up to 25 year for real estate loans)
  • Maximum 10 year for non-real estate loans
  • Start-up businesses can qualify
  • Quick response

Type of SBA Loan programs:

SBA 7(a) Loans (Up to $5 million)

For any business use, including business real estate purchase, construction, refinance, business acquisition or expansion, equipment/inventory purchases, or working capital.

Maximum Loan Amount

$5,000,000.00

Maximum SBA Guaranty %

75% or Guaranty up to 85% of loans of $150,000 or less

Loan Maturities
  • Up to 25 years for Real Estate
  • Up to 10 years for Business acquisition or refinance
  • Up to 10 years for Equipment (or the useful life of the equipment)
  • Up to 7 years for Working capital or inventory. If written justification provided, may be up to 10 years)

 

SBA Express Loans (Up to $350,000)

SBA Express loan has been specifically designed for a growing small business that might not qualify for other loans.  Financing is available for working capital, business real estate purchase, refinance, business acquisition or expansion, equipment/inventory purchase, or leasehold improvements.

Maximum Loan Amount

$350,000.00

Maximum SBA Guaranty %

50%

Loan Maturities
  • Up to 25 years for Real Estate
  • Up to 10 years for Business acquisition or refinance
  • Up to 10 years for Equipment (or the useful life of the equipment)
  • Up to 7 years for Working capital or inventory. If written justification provided, may be up to 10 years)

 

SBA Community Express Loans (Up to $350,000)

SBA Community Express loans are specifically designed to better serve small businesses located in economically disadvantaged communities.  The communities clarified by SBA, which generally comprised SBA’s Historically Underutilized Business Zones (HUBZones) and those communities identified as distressed through the Community Reinvestment Act (CRA), are eligible under this program.

Maximum Loan Amount

$350,000.00

Maximum SBA Guaranty %

Follows Standard SBA guaranteed percent

Loan Maturities
  • Up to 25 years for Real Estate
  • Up to 10 years for Business acquisition or refinance
  • Up to 10 years for Equipment (or the useful life of the equipment)
  • Up to 7 years for Working capital or inventory. If written justification provided, may be up to 10 years)

 

The following will direct you to find out which areas are identified as underserved communities:

http://map.sba.gov/hubzone/init.asp
http://www.ffiec.gov/geocode/default.aspx

SBA Patriot Express Loans (Up to $500,000)

Exclusively for veterans, members of the military community and their spouses who want to establish or expand a small business.
Must meet standard SBA eligibility and must be 51 percent or more owned / controlled by: 

  • Veteran (other than dishonorably discharged)  
  • Active Duty Military potential retiree within 24 months of separation and discharging Active Duty member within 12 months of discharge (TAP eligible)
  • Reservist and National Guard
  • Current spouse of above or spouse of service member or veteran who died of a service-connected disability.

SBA Guaranty Fees

To offset the costs of the SBA’s loan programs to the taxpayer, the SBA charges a guaranty fee for each loan approved and disbursed. The following fee structure applies:

  • 2% of guaranteed amount for loans up to $150,000 (85% Guaranty)
  • 3% of guaranteed amount for loans from $151,000 to $700,000 (75% Guaranty)
  • 3.5% of guaranteed amount for loans over $700,000 (75% Guaranty)
  • If guaranteed portion of the loan exceeds $1.0 million, additional 0.25% guarantee fee is required by the SBA

SBA 504 Program

The SBA 504 Loan Program is a long-term financing tool for economic development, which provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as purchasing land and buildings, construction of new facilities, or renovation or converting existing facilities, or purchasing machinery and equipment.

The biggest advantage of this 504 Program allows businesses to contribute as little as 10% equity into a project.  (* New business or limited or special purpose property requires a minimum 15% or 20% equity injection)

Typical 504 Financing Structures

 

Standard Financing * New Business or Limited or Special Purpose Property * Both New AND Limited or Special Purpose Property
UniBank (Third Party Lender) as 1st Trusted Deed 50% 50% 50%
CDC/SBA as 2nd Trust Deed 40% 35% 30%
Borrower Down Payment 10% 15% 20%

 

What funds may be used for:

  • Purchasing land and improvements including existing buildings
  • Grading, street improvements, utilities, parking lots, and landscaping
  • Construction of new facilities, or modernizing, renovating or converting existing facilities
  • Purchasing long-term machinery and Equipment

* Can not be used for working capital or inventory, consolidating or repaying debt, or refinancing.

Maximum Debenture Amount:  The Gross Debenture cannot exceed;

(i) $5,000,000 for Regular 504 loans,
(ii) $5,500,000 for Small Manufacturers (defined as a business with its primary NAICS Code in Sectors 31, 32, and 33, and all of its production facilities are located in the United States.)

Terms, Interest rates, Fees, Size, and Prepayment Penalty:

 

UniBank 1st Trust Deed Loan SBA 504 Debenture 2nd Trust Deed Loan
Terms  10 years due / 20 years amortization 20 years
Interest Rates Tied to Wall Street Journal Prime Fixed for life (based on SBA debenture rate) *The debenture rate is determined at time of application
Fees To be determined (usually 0.5% of the senior mortgage loan) – One time Approximately 2.75% to 3% of 2nd TD loan amount
Size Eligibility N/A To be eligible as small business, its tangible net worth should not be in excess of $15 million and does not have an average net income in excess of $5 million after taxes for the preceding two years
Prepayment Penalty To be determined Declining first 10 years

 

Contact us at 425-275-9700 to learn more about the SBA advantage loan products.  UniBank’s experienced loan officer will assist you from start to finish by processing your loan application in a timely manner.