Choosing a Small Business Loan to Help Your Business Grow

small-business-loans

Oakwood Commercial Capital Group is proud to be a Preferred Financial Services company with several Lenders qualified under the SBA Preferred Lenders Program. The Preferred Lenders Program (PLP) is part of SBA’s effort to streamline the procedures necessary to provide financial assistance to the small business community. Under this program, SBA delegates the final credit decision and most servicing and liquidation authority and responsibility to carefully selected PLP lenders. Lenders are considered for PLP status based on their record with SBA, and must have demonstrated a proficiency in processing and servicing SBA-guaranteed loans.

We specialize in providing long-term financing to small business and through our relationship with PLP designated lenders you will receive fast and efficient processing of your SBA loan.

Businesses Which Qualify for an SBA Loan

Almost any type of for-profit business is eligible for the SBA loan program. We work closely with you to determine if your business fits into the guidelines provided by the SBA and then provide you the financing options available. SBA loan programs have terms up 25-years with competitive fixed or variable interest rates.

7a Loan Program

This program provides long-term permanent financing for new and small businesses. Commercial real estate must be partially occupied by the owner/borrower. To qualify for a loan your business must meet the following requirements:

  • Retail businesses must have annual sales totaling less than $6 million
  • Manufacturing businesses must have fewer than 500 employees
  • Service businesses must have fewer than 100 employees

Loans can be used for working capital, acquire equipment, and business acquisition. Loans for commercial real estate can be used to acquire, construct or refinance property that is partially occupied by the owner/borrower. Eligible property types include, but are not limited to:

  • Hotels
  • Restaurants
  • Gas Stations
  • Franchises
  • Start-ups
  • Office Buildings
  • Single-use Buildings
  • Warehouses
  • Industrial Buildings
  • Automotive Repair
  • Retail Space
  • Professional Buildings
  • Car Wash Facilities
  • Child Care Facilities
  • Manufacturing
  • Bed and Breakfast

Benefits to small businesses, such as:

  • Up to 90 percent financing for real estate transactions
  • Up to 80 percent financing for business acquisitions
  • Up to 100 percent financing for equipment
  • Terms up to 25 years for real estate
  • Terms up to 10 years for equipment or business acquisition
  • Terms up to 7 years for permanent working capital
  • Loan amounts up to $5 million

504 Loan Program

Typically, a 504 project includes:

  • A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost
  • A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost
  • A contribution from the borrower of at least 10 percent equity
  • Commercial real estate must be partially occupied by owner/borrower

This loan program can be used for:

  • The purchase of land, including existing buildings
  • The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating or converting existing facilities
  • The purchase of long-term machinery and equipment
  • Refinance up to 90 percent of the current appraised property value.

This loan program provides up to $12 million in financing to for-profit businesses, and offers features such as:

  • Up to 90 percent funding on real estate transactions
  • Up to 80 percent funding for equipment acquisitions
  • Terms of 10 years for equipment and 20 years for real estate
  • Low interest rates

Call us now, we have financial professionals who have the backing of a large portfolio of products to help you find the right small business loan that fits your business goals and objectives. Let us help you find the right financing solution.