- Available for long term financing of owner-occupied small business real estate
- Also available for business acquisitions, partner buyouts, debt consolidation, refinancing, and business expansion
- Loan amounts up to $5 million
- Repayment monthly for up to 25 years on select real estate loans
- Minimum 10-20% down payment requirement for real estate and business acquisition financing
- Competitive interest rates
FAQs about SBA Government Loans
How does the SBA 7(a) loan program work?
Participating lenders, such as Members Choice Credit Union, commercial banks, and licensed nonbank lenders, originate loans up to $5 million per small business borrower. These loans have an 85% government guarantee to the lender for loans up to $150,000, and a 75% government guarantee for loans over $150,000. The partial government guaranty reduces the credit risk to the lender, so loans can be granted with lower down payment requirements, longer repayment terms, and easier qualifying criteria than conventional bank loans.
Which businesses are eligible for SBA loans?
Businesses that fit the SBA definition of a small business are eligible for the loan program. In general, privately-owned, for-profit businesses, which are not publicly owned or considered a middle-market business, are eligible for SBA financing.
For what purposes can SBA 7(a) loan proceeds be used?
Loan proceeds from the SBA government-guaranteed SBA 7(a) loan program can be used for any legitimate business purpose. Uses of SBA loan funds may include:
- Purchase small business real estate in which the business will occupy the majority of the space.
- Construct new small business facilities.
- Purchase new machinery, equipment, and furnishings for the small business.
- Provide working capital for growth and expansion.
- Refinance existing non-SBA small business loan for a lower interest rate or longer repayment term.
- Purchase an existing small business.
- Buy out a partner in a small business.
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If not currently a Members Choice member, a $5 deposit is needed to establish membership. All memberships and credit products are subject to approval including credit approval. All SBA loans and lines of credit subject to SBA product, collateral and underwriting requirements, and approval.
Loans and other products are subject to definitive agreements. Business Loans are those loans that are for commercial use and any property and/or proceeds from the proposed request will be used by the requestor for commercial purposes only and not for any personal, family or household purposes, and that the proposed request would constitute a business loan which is exempted from the disclosure requirements of the Truth in Lending Act.