4 "Respect Writer"

Program

Maximum Loan

Amount

Percent of Guaranty

Use of Proceeds

Maturity

Maximum Interest Rates

Guaranty Fees

Who Qualifies

Benefits to Borrowers

7(a) Loans

$5 million gross

85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)

Term Loan. Expansion/ renovation; new construc- tion, purchase land or buildings; purchase equipment, fixtures, lease-hold improvements; working capital; refinance debt for compelling rea- sons; seasonal line of credit, inventory or start- ing a business

Depends on ability to repay. Generally, working capital & machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.

Loans less than 7 years: $0 - $25,000 Prime + 4.25% $25,001 - $50,000 P + 3.25% Over $50,000 Prime + 2.25% Loans 7 years or longer: 0 - $25,000 Prime + 4.75% $25,001 - $50,000 P + 3.75% Over $50,000 Prime + 2.75%

(No SBA fees on loans of $150,000 or less approved in FY 2014.) Fee charged on guaran- tied portion of loan only. Maturity: 1 year or less 0.25% guaranty fee; over 1 year: $150,001- $700,000 = 3.0%; over $700,000 = 3.5%; 3.75% on guaranty portion over $1 million. Ongoing fee of 0.52%.

Must be a for profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty for loans with maturities of 15 years or more if prepaid during first 3 years. (5% year 1, 3% year 2 and 1% year 3)

Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years)

Small Loan Advantage (SLA) Is now the 7(a) $350,000 and under model.

$350,000

Same as 7(a) Same as 7(a) The SLA name is for transition purposes, but it covers all loans $350,000 and under, except the express programs.

Same as 7(a) Same as 7(a) Same as 7(a) Same as 7(a) plus all loan applications will be credit scored by SBA prior to loan approval or loan number . If not acceptable the loan can be submitted via SBAExpress.

Same as 7(a)

SBAExpress

$350,000

50% May be used for revolving lines of credit (up to 7 year maturity) or for a term loan (same as 7(a)).

Up to 7 years for Revolving Lines of Credit including term out period. Other- wise, same as 7(a).

Loans $50,000 or less; prime+ 6.5%; Loans over $50,000; prime + 4.5%

Same as 7(a)

Same as 7(a) Fast turnaround; Streamlined process; Easy-to-use line of credit

SBA Veterans Advantage 01/01/14 - 09/30/14

Same as SBAExpress

Same as SBAExpress

Same as SBAExpress Same as SBAExpress

Same as SBAExpress

No guaranty fee Ongoing fee of 0.52%.

Same as 7(a). Plus, small business must be owned and controlled (51%+) by one or more of the following groups: veteran, active-duty military in TAP, reservist or National Guard member or a spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service, or a service- connected disability.

Same as SBAExpress No guaranty fee

CapLines: 1. Working Capital; 2. Contract ; 3. Seasonal; and 4. Builders

$5 million

Same as 7(a) .

Finance seasonal and/or short term working capital needs; cost to perform; construction costs; advances against existing inventory and receiva- bles; consolidation of short-term debts. May be revolving.

Up to 10 years, except Builder’s CAPLine, which is 5 years

Same as 7(a) Same as 7(a) Same as 7(a), plus all lenders must execute Form 750 & 750B (short term loans)

1. Working Capital - (LOC) Revolving Line of Credit 2. Contract - can finance all costs (excluding profit). 3. Seasonal - Seasonal working capital needs. 4. Builder - Finances direct costs with building a commercial or residential structure

Community Advantage Mission focused lend- ers only. Expires 03/15/17

$250,000 Same as 7(a) Same as 7(a) Same as 7(a) Prime plus 6% Same as 7(a) Same as 7(a) Same as 7(a) Plus lenders must be CDFIs, CDCs or micro-lender target- ing underserved market

U.S. Small Business Administration 10 S. Howard Street, Suite 6220 Baltimore, MD 21201

Baltimore District Office (410) 962-6195 www.sba.gov/md

Information current as of January 2014

SBA Programs and services are provided on a nondiscriminatory basis.

See the SOP for the most up to date detailed information

Program Baltimore

Maximum Loan

Amount

Percent of Guaranty

Use of Proceeds

Maturity

Maximum Interest Rates

Guaranty Fees

Who Qualifies

Benefits to Borrowers

International Trade $5 million 90% guaranty (up to $4.5 million maximum guaranty) (Up to $4 million maximum guaranty for working capital )

Term loan for permanent working capital, equip- ment, facilities, land and buildings and debt refinance related to international trade

Up to 25 years. Same as 7(a) Same as 7(a)

Same as 7(a), plus engaged or preparing to engage in international trade or adversely affected by competition from imports.

Long term financing to allow small business to compete more effectively in the inter- national marketplace

Export Working Capital Program

$5 million 90% guaranty (up to $4.5 million maximum guaran- ty)

Short-term, working- capital loans for export- ers. May be transaction based or asset-based. Can also support standby letters of credit

Generally one year or less, may go up to 3 years

No SBA maximum interest rate cap, but SBA monitors for reasonableness

Same as 7(a) Same as 7(a), plus need short -term working capital for exporting.

Additional working capital to increase Export sales without disrupting domestic financing and business plan

Export Express

$500,000 90% guaranty for loans of $350,000 or less; 75% guaranty for loans greater than $350,000

Same as SBAExpress plus standby letters of credit

Same as SBAExpress

Same as SBAExpress

Same as 7(a) Applicant must demonstrate that loan will enable them to enter a new, or expand in an existing export market. Busi- ness must have been in operation for at least 12 months (though not necessari- ly in exporting).

Fast turnaround; Streamlined process; Easy-to-use line of credit

504 Loans Provided through Certified Development Companies (CDCs) which are licensed by SBA

504 CDC maxi- mum amount ranges from $5 million to $5.5 million, depending on type of business.

Project costs financed as fol- lows: CDC: up to 40% Non-guaranteed financing: Lender: 50% Equity: 10% plus additional 5% if new business and/ or 5% if special use property.

Long-term, fixed-asset loans; Lender (non- guaranteed) financing secured by first lien on project assets. CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien.

CDC Loan: 10- or 20-year term fixed interest rate. Lender Loan: Unguaranteed financing may have a shorter term. May be fixed or adjustable interest rate

Fixed rate on 504 Loan established when the debenture backing loan is sold. Declining prepayment penalty for 1/2 of term.

.5% fee on lender share, plus CDC may charge up to 1.5% on their share. CDC charges a monthly servicing fee of 0.625%- 1.5% on unpaid balance Ongoing guaranty fee is 0.9375% of principal outstanding. Ongoing fee % does not change during term.

Alternative Size Standard: For-profit businesses that do not exceed $15 million in tangible net worth, and do not have an average two full fiscal year net income over $5 million. Owner Occupied 51% for existing or 60% for new con- struction.

Low down payment - equity (10%-20%) (The equity contribution may be borrowed) Fees can be financed; SBA Portion: Long-term fixed rate Full amortization No balloons

Non-7(a) Loans Microloans Loans through

nonprofit lending organizations; technical assistance also provided.

$50,000

Not applicable Purchase machinery & equipment, fixtures, leasehold improvements; working capital.; etc. Cannot be used to repay existing debt.

Shortest term possible, not to exceed 6 years

Negotiable with intermediary. Subject to either 7.75 or 8.5% above intermediary cost of funds.

No guaranty fee Same as 7(a) Direct loans from nonprofit intermediary lenders; Fixed-rate financing; Very small loan amounts; Technical assistance available

U.S. Small Business Administration 409 3rd Street, S.W. Washington, DC 20416

SBA Answer Desk 1-800-827-5722 www.sba.gov

Developed by Baltimore District Office

(410) 962-6195

January 2014