7(a) Loan Program
Eligible Businesses and Property Types
Almost any type of for-profit business is eligible. Commercial real-estate must be partially occupied by borrower and includes, but is not limited to, the following types of properties:
- Office Buildings
- Warehouses
- Industrial Buildings
- Manufacturing
- Child Care Facilities
- Car Wash Facilities
- Automotive Repair Shops
- Professional Buildings
- Hotels
- Gas Stations
- Franchises
- Start-ups
Use of Proceeds
- Real-estate acquisition, construction, or refinance – up to 90% financing available
- Business Acquisition – up to 80% financing available
- Equipment Acquisition – up to 90% financing available
- Debt Refinance -up to 100% financing available
Terms
- Up to 25 years for real-estate financing
- Up to 10 years for equipment or business acquisition financing
- Up to 7 years for permanent working capital
- All loans are fully amortized.
Interest Rates and Fees
Interest rates are always market competitive. Fees are generally limited to the SBA guaranty fee and customary closing costs.
Loan Structures
Range from $350,000 to $5,000,000.
504 Loan Programs
The 504 Loan Program provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
Loan Structures
Financing available on projects up to $10,000,000.
- Evolve Bank & Trust typically provides a first mortgage of up to 50% of the total loan-to-value. This loan can range from $500,000 to $5,000,000.
The SBA, through a Certified Development Company (CDC) provides up to 40% loan-to-value in a second lien position. This loan can range from $350,000 to $4,000.
Eligible Businesses and Property Types
Most for-profit business is eligible for financing. Commercial real-estate must be 51% or greater owner occupied.
Use of Proceeds
- Real-estate acquisition, construction, or refinance – up to 90% financing available
- Equipment Acquisition – up to 80% financing available
Terms
- First Mortgage – up to 25-year term for real-estate loan and up to 15-year term for equipment purchase
- Second Mortgage – up to 20-year term for real-estate and up to 15-year term for equipment purchase. Fixed rate is determined at SBA guaranteed 504 debenture sale.
Interest Rates and Fees
Interest rates are always market competitive. Fixed and variable interest rates available. Fixed rates are determined at the SBA guaranteed 504 debenture sale.
- First Mortgage – competitive conventional rate set by bank
- Second Mortgage – 25-year fixed rate. Determined at 504 debenture sale. Typically, below market rates.
Fees also include customary closing costs, construction loan fees (if applicable), and bridge fees.
