Who Can Apply?

For profit businesses

For profit businesses
Maximum tangible net worth of $8.5MM
Maximum average profit of $3.0MM/yr 

Purpose

Purchase real estate (owner-occupied >51% space)
Franchises
Business acquisition
Machinery and equipment financing
Debt refinancing
Working capital

Fixed asset acquisition
Refinancing of eligible real estate debt
(contact East River Bank SBA specialist for details)

Maximum% of Government Guarantee

85% for loans up to $150,000
75% for loans over $150,000

There is no SBA guarantee.  This loan is direct loan from SBA to borrower.

Maximum Loan Amount

$5.0 Million

$5.0 Million
$5.5 Million for manufacturers

Maturity

7 yrs for working capital
10 yrs for machinery & equipment
10 yrs for business acquisition
25 yrs for real estate
Blended terms available when multiple purposes are used

10 years for equipment
20 years for real estate

Interest Rates

Loan pricing and structure based on merits of each individual loan
request.

Loan pricing and structure based on merits of each individual loan request.

Fees

2.0% on guaranteed portion of loan up to $150,000;

3.0% on guaranteed portion of loans > $150,000,
up to and including $700,000;

3.5% on guaranteed portion on loans over $700,000
up to $1.0 Million;
plus an additional 0.25% on guaranteed portion over $1.0 Million                              

Approximately 2.5%-3.0% of SBA 504 loan amount. 
Specific breakdown will be provided by participating Commercial Development Company.

Prepayment Penalty

None on loans with terms less than 15 yrs.
5.0%, 3.0%, and 1.0% on first 3 years on loans with term >15 yrs.

10 years based on remaining debenture payout

Special Features

Up to 90% financing available
Blended loan term helps to reduce monthly payments.

Has a job creation/retention goal and/or public policy goal based upon amount of SBA loan. 
Consult East River Bank SBA Specialist for details.