U.S. Small Business Administration Programs (SBA)

Loan amount available:

30-40% up to $5,000,000 in rural area with secondary collateral position based on appraised value

Interest rate:

20 year fixed market rate

Term:

10 years for equipment with equal or greater useful life, 20 years for real estate

Primary requirements:

50% Bank participation in first collateral position

Special requirements:

• Bonded contractor

• Appraisal on plans/specs prior to submitting application

• Working capital and inventory ineligible

• Special limitations on using for equipment/furniture/fixtures

Special features:

10-20% cash down payment requirement, assuming appraisal doesn’t require additional cash.