SBA Lending
We are one of the top SBA lenders in Wisconsin, and a top 10 lender in the nation for SBA 504 loan volume. That’s quite a pedigree!
As an SBA Preferred Lender, we are able to provide fast turn-around on SBA loans, while still providing our personalized service. Benefits of an SBA loan include the ability to secure long term financing (no balloon payments), flexible program requirements, longer amortization than a conventional loan generally allows, and easy accessibility to financing thanks to the Small Business Administration guaranty.
SBA loans fund a variety of business needs including:
- Business acquisitions
- Owner-occupied real estate purchases
- Construction
- Fixed asset purchases – computers, equipment, vehicles, and machinery
- Business expansion and permanent working capital
- Start-up business expenses
- Debt refinance
We’re experts in owner-occupied real estate financing:
- Purchase commercial real estate
- Refinance debt secured by commercial real estate
- Improve cash flow
- Save money
- Build equity
Bank Five Nine currently participates in these SBA programs:
- 7a – The 7a loan program has flexible parameters to accommodate most requests. A 7a loan cannot have a revolving provision and the maximum loan size is $5,000,000. The term of the loan is dependent on the purpose of the request; typically, working capital loans range from 7 – 10 years, while real estate loans can be as long as 25 years. The SBA provides the lender with a 75 – 85% guaranty depending on the size of the request.
- Express – With an SBA Express loan, the loan amount cannot exceed $350,000 and carries a maximum term of 10 years. The loan can be a term loan or a revolving line of credit. The SBA provides the lender with a 50% guaranty.
- 504 – The 504 program is intended for real estate purchases, construction, and machinery and equipment purchases. This program enables the borrower to provide as little as a 10% equity injection. The financing package is structured with 2 loans – one loan is typically obtained through Bank Five Nine for 50% of the financing needs and secured by a 1st lien on the asset. A second loan is temporarily obtained through Bank Five Nine before ultimately being replaced by an SBA loan provided by a Certified Development Company for approximately 40% of the financing needs, depending on the amount of borrower contribution required. The SBA’s loan is a fixed rate loan up to a 25 year term and is secured by a 2nd lien on the asset.
- Working Capital CAPLines – Revolving lines of credit with annual renewal availability up to 10 years. Maximum loan size is $5,000,000. Loan must be fully collateralized or structured with a borrowing base. Applicant must provide first lien on accounts receivable and inventory of the business. SBA provides lender a 75 – 85% guaranty.
We will work with you to complete all the necessary paperwork and create a financing package that suits your unique business needs. For more information on how an SBA loan could help your business, or to ask about a loan, please contact a lender near you.