SBA Lending

Small business is the lifeblood of a community. That is why Community Bank & Trust is committed to the growth and prosperity of small businesses and are determined to help our clients achieve and build on their success. 

SBA loans can be used to:

  • Purchase machinery and equipment
  • Purchase, construct, expand or improve a building
  • Acquire inventory
  • Provide working capital
  • Purchase an existing business or open a new business
  • Refinance existing business debt on more favorable terms

Key benefits:

  • Longer term and amortization
  • Improved cash flow through a lower monthly payment
  • Larger loan amount than may otherwise be available
  • Lower down payment may be possible
  • No balloon payments

 


 

SBA Loan Program Comparison

  Standard 7(a) Loan SBA Express Loan

Loan Amount

  • Loans up to $5,000,000
  • Loans up to $350,000
Maximum Term/Amortization
  • 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory & Leaseholds
  • 25 Years for Real Estate
  • 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory & Leaseholds
  • 25 Years for Real Estate
  • 7 Years for a Revolving Line of Credit with Annual Review
Eligible Use of Proceeds
  • Working Capital
  • Inventory
  • Business Purchase
  • Equipment Financing
  • Real Estate Financing
  • Debt Refinancing
  • Leasehold Improvements
  • Working Capital
  • Inventory
  • Business Purchase
  • Equipment Financing
  • Real Estate Financing
  • Debt Refinancing
  • Leasehold Improvements
  • Revolving Line of Credit
Rate Structure
  • Floating rate (Quarterly): Maximum of 2.75% over the WSJ Prime
  • Floating Rate (Quarterly): Maximum of 2.75% over the WSJ Prime
Collateral
  • 1st Lien on assets to be financed required. SBA may require additional collateral on other business or personal assets
  • 1st Lien on assets to be financed required. SBA may require additional collateral on other business or personal assets
Guaranty Fee Paid to SBA
  • Loans up to $150,000 there is no Guaranty Fee
  • Loans from $150,001 to $700,000: 3% of Guaranteed Amount
  • Loans from $700,001 to $5,000,000: 3.5% of Guaranteed Amount Plus an additional .25% on the Guaranteed Amount over $1,000,000
  • Loans up to $150,000 there is no Guaranty Fee
  • Loans from $150,001 to $700,000: 3% of Guaranteed Amount
  • Loans from $700,001 to $5,000,000: 3.5% of Guaranteed Amount Plus an additional .25% on the Guaranteed Amount over $1,000,000
Application
  • Standard 7(a) loan application (long form)
  • SBA Express Application (Short Form with expedited processing)

* SOURCE:  Small Business Administration. Based on total dollar volume of SBA lending by banks in Iowa between FY2009-FY104.

 


 

Frequently Asked Questions

Am I eligible for an SBA loan?

There are certain criteria that must be met in order to qualify for an SBA loan. The business must:

  • Operate for profit
  • Be located in the United States
  • Meet credit qualifications
  • 51% owned by citizen or legal permanent resident (LPR)

What information do I need to apply for an SBA loan?

Once you've decided to apply for an SBA loan, you will need certain information to apply. A Community Bank & Trust SBA specialist will help walk you through this process. Prior to meeting with us, use this checklist to gather the necessary information:

  • Personal financial statement
  • Resumes
  • Business plan
  • Income tax returns (personal and business)
  • Business financial statements (less than 60 days old)
  • Bank statements
  • Collateral
  • Legal documents

What will my banker ask me?

  • The following information is what you need to know before coming in to see a Community Bank & Trust lender.
  • Why are you applying for this loan?
  • How will the loan proceeds be used?
  • What assets need to be purchased, and who are your suppliers?
  • What other business debt do you have, and who are your creditors?
  • Who are the members of your management team?

Questions? Call to speak to one of our trusted commercial lenders today. 319.291.2000