Existing
Home Up Startup Real Estate Existing Acquisition

 

Existing Business Loans

Please note that our minimum loan requirement is $250,000.

When an applicant already owns a business, loan proceeds can be used for the following purposes:

To purchase Real Estate;

The term for Real Estate loans will be 25 years.

To purchase machinery and equipment;
To purchase furniture and fixtures;
For leasehold improvements on leased property;
To consolidate debts or purchase another business;

The term for these loans will be 10 years, fully amortized.

To purchase inventory; or
To provide working capital.

These loans will have a 7 year term, fully amortized.

Blended Loan Term

What happens if a business needs a loan to purchase a building, install new equipment and needs some money for moving expenses? In that case the term will be blended. Let's look at the following example: A business is buying a building for $300,000, needs $100,000 for equipment, and needs $50,000 for moving expenses, i.e., working capital. In this case the $300,000 (two thirds of the full loan amount) will be at 25 years, blended with $100,000 at 10 years and $50,000 at 7 years for an actual $450,000 loan term of 19 years, fully amortized.

Obviously, if the business is very successful and the owner wants to pay off the principal balance earlier, he may do so. There is no prepayment penalty on SBA Loans.

Real Estate

Please go to our Real Estate section for a full discussion of terms and benefits.  Then return here to fill out your qualification form.

Machinery and Equipment

With an SBA loan a business can finance 100% of the equipment cost (including installation costs) whereas equipment leasing companies do not cover any installation costs associated with the leased equipment, and very rarely if ever do leasing companies or commercial lenders provide a fully amortized loan over 10 years. Additionally, the SBA loan does not carry a pre-payment penalty. Be aware, however, that the SBA loan may require additional collateral such as a blanket lien on all business assets, or real estate collateral.

Debt Refinance

You can use SBA loan proceeds to refinance existing business debt under the following conditions:

SBA requires proof that the original loan (which may since have been refinanced or renewed) and subsequent financing were used for a valid business purpose.
The note has to be fully secured.
We have to demonstrate a tangible business benefit from refinancing the existing debt.

Working Capital

There are two distinct types of working capital loans:

Conventional lines of credit, whether secured or unsecured, used for seasonal peaks and valleys, for increased sales with corresponding receivables, or for projects that are bigger or larger in scope than the business can handle with current cash flow. These working capital loans are normally paid back by the business through liquidation of assets, i.e., A/R, contracts completed and paid, etc., and are normally not handled by SBA loans.
Another type of working capital loan, which the SBA will consider, is the term loan used for business expansion. These are funds needed to finance additional inventory, a second location, a new line of products, additional personnel to provide services, etc. These loans are paid off through increased profits from the expansion activities.

Key Benefits

Longer Terms Than Conventional Loans
Fully Amortized Term
No Prepayment Penalties
No Balloon Payments

Application Form

Please fill out the following Application Form and submit to us.  We will determine loan feasibility within 24 hours.  If it looks good we will submit the request to our lenders and let you know within a week.

We suggest that you print this form prior to filling it out so that you can collect necessary information before you begin.  We know this form is detailed, but this is the information necessary to determine your loan qualification, so please stick with it.

Important Note:

We share information submitted to us only with banks we represent and only in accordance with strict internal security standards, confidentiality polices and applicable laws. We do not share client information with other companies except in order to conduct our business, comply with applicable law, and to protect against fraud. For privacy and security reasons, we do not keep any information you submit to us tied to the Web. All such information is stored in our corporate computer files which are off line and only accessible to SBA e-loans personnel.

Note that you can <tab> from field to field.

Business Data

Applicant Borrower Name:
Applicant Business Name:
Type of Business
Is it a Franchise? Yes  No
Name of Franchise
How long have you owned this business? years
Current Number of Employees employees
How is the business organized?

Loan Request

Machinery and Equipment
Furniture & Fixtures
Inventory Purchase
Working Capital
Real Estate/Improvements
Business Debt Repayment
Real Estate Debt Repayment
(less) Your Cash Injection
(less) Other Available Financing
Total Loan Amount Requested

Real Estate (Fill out only If loan request includes Real Estate/Improvements)

Property Size and Business Use (indicate total square footage after any addition):

Please indicate property size in sq.ft.
Please indicate business use in sq.ft.

Purchase of Existing Property Details

Property Purchase Price
Any Improvement Costs
Any Addition Costs

Construction of New Property Details

Land Cost
Construction Cost

Real Estate Refinance Details

Property Acquisition Date
Property Cost
Current Loan Balance
Interest Rate (e.g. 11.50)
Due Date
Montly Payments
Was the Property already refinanced? yes no
If yes, please give details below:
Were any funds from current refinancing used for any other purpose than the property itself? yes no
If yes, please give details below:

Collateral

Do you have collateral to offer? Yes  No
Please Describe:
Can you offer Real Estate collateral? Yes  No
Please provide details, including any equity:

Lease

Term of any Business Facility Lease years
Years Remaining on such Facility Lease years

Existing Business Financial Information

Please give details on any existing loans below:

Important Note:  Indicate any loan that will paid off or paid down by this SBA loan with an asterisk before that Lender's Name, e.g., *ABC Bank.  Also, enter annual loan payments.

Loan 1 Loan 2 Loan 3 Loan 4
Lender
Original Amount
Original Date
Present Balance
Annual Payments
Maturity Date
Collateral

Please give details on any existing lines of credit below:

Line 1 Line 2
Lender
Line Amount
Current Balance
Interest Rate (e.g. 8.50)
Collateral

Does your business buy from, sell to, service or receive service from another concern in which your business has a controlling interest?  Yes No

If yes, please explain:

Is your business involved in any lawsuit or is there a pending lawsuit?  Yes No

If yes, please explain:

Has your business ever been involved in a bankruptcy?   Yes No

If yes, please explain:

Provide the following from your last available business Tax Return.  If the amount is nil, please enter 0 (zero):

Sales
Officer/Partner Salaries (if Corporation or Partnership)
Interest Payments
Depreciation/Amortization
Net Profit

If you purchase property as part of this project that will replace all or part of a facility where you currently pay rent, please indicate the annual rent you will save:

Are there any expenses listed on your business Tax Return which will not be going forward?   If so, what is the total annual amount of such expenses:

Please provide details on any such expenses:

What are the terms of any Additional Financing?

Lender Loan Amount Interest (e.g. 9.50) Term (in months)
Primary Use
Primary Use
Primary Use

Principal Owner Personal and Financial Data

Who is the principal owner of the business, and at what ownership percentage?

Name:   %:

Financials

Personal Assets Value/Balance
Cash (checking, savings, escrow) before any cash injection into current project
IRA & Other Retirement Accounts
Notes Receivable
Life Insurance (cash surrender value only)
Stocks and Bonds
Autos

Personal Real Estate

IImportant Note:  We use the annual payments/expenses you enter below to calculate how much you need to draw from the business, so take care to ensure that these figures are accurate.  They must be verified before final loan approval.  Enter as Annual amounts.

Item Property 1 Property 2 Property 3 Property 4
Type of Property
Street Address
Property Value
Current Loan Balance
Annual Loan Payments
Loan Status
Annual Property Tax
Annual Property Insurance
Any Other Annual Expenses

Important Note:  We use the annual payments you enter below to calculate how much you need to draw from the business, so take care to ensure that these figures are accurate.  They must be verified before final loan approval.  Enter as Annual amounts.  If your are married, please enter combined household payments/expenses.

Personal Liabilities Current Balance Annual Payments
Accounts Payable
Non-Real Estate Notes/Loans Payable*
Car Loans
Car Leases
Tax Payable
Living Expenses, including food, utilities, etc.

*Real Estate is covered separately above.

Personal Residence

Do you own or rent your residence? 

If you rent, what is your Annual rent? 

Other Personal Income Sources

Important Note:  We use the annual income from other sources you enter below to calculate how much you need to draw from the applicant business, so take care to ensure that these figures are accurate.  They must be verified before final loan approval.  Enter as Annual amounts.

Any Annual Salary/Draw from Other Businesses
Any Annual Real Estate/Rental Income
Any Annual Spouse Salary
Any Annual Interest & Dividend
Any Annual Other Income (please describe below)

Please describe any Other Income:

Other Necessary Draw from Applicant Business

Are there other owners that need to draw salary from the applicant business?  If so, what is the total Annual amount to be drawn?  

Other U.S. Small Business Administration Related Questions:

What is your position with applicant business?

Are you a U.S. Citizen?  Yes No

If No, are you a Legal Resident?  Yes No

Do you own or have controlling interest in any other business?  Yes No

If Yes, please provide detail:

Name of Busines Last Year's Annual Sales Number of Employees

Have you ever been involved in bankruptcy or insolvency proceedings?  Yes No

If Yes, please provide detail:

Are you involved in any pending lawsuits?   Yes No

If Yes, please provide detail:

Do your or your spouse or any member of your household, or anyone who owns, manages, or directs your business or their spouses or members of their households work for the Small Business Administration, Small Business Advisory Council, SCORE or ACE, any Federal Agency, or the participating lender?  Yes No

If Yes, please provide name and address of the person and the office where they are employed:

Are you presently under indictment, on parole or probation?   Yes No

If Yes, please provide detail:

Have you ever been charged wth or arrested for any criminal offense other than a minor vechicle violation?  Yes No

If Yes, please provide detail:

Have you ever been convicted for any criminal offence other than a minor vechicle violation?  Yes No

If Yes, please provide detail:

Your Contact Information

Name
Title
Company
City   State Zip
E-mail
Phone
Thank you very much for sticking with it.  Now, please press Submit.  The form may come back to prompt for and return you to any missing fields, or fields with incorrect type of data.  If so, please correct, then press Submit again.