SBA 7(a) Loan Program Overview

Who is eligible for an SBA guaranteed loan?

Loan qualifications

• Retail and services businesses with 3 year average of sales not exceeding $7.0 million to $35.5 million, depending on the industry



• Wholesale businesses with up to 100 employees, regardless of sales volume



• Manufacturers with up to 500 employees, depending on the industry, regardless of sales volume



• SBA 7(a) Loan Size



• Loans from $350,000



• Loan Fees



• Loan packaging fee up to $1,000



• SBA guaranty fee



• Fee may be financed in the loan

Use of proceeds

• Commercial real estate (purchases, construction or refinance)



• Leasehold improvements



• Business expansion



• Machinery, equipment, furniture or fixtures



• Business acquisitions



• Partner/shareholder buy outs



• Start-up (franchise, medical/professional practice)



• Refinancing available on eligible commercial mortgage loan

Collateral

• First security interest in all business assets



• Personal assets (including residences) may be taken as collateral

Terms

• Up to 25 years for real estate purchases



• Up to 25 years for business acquisitions with real estate



• Up to 25 years for franchise start-ups with real estate

Down payments

• As low as 10% for commercial real estate purchase



• As low as 15% for business acquisitions



• As low as 15% for business start-ups

504 Loan Program Overview

Who is eligible for an SBA 504 loan?

Use of Proceeds

• Purchase, construction or renovation of owner-occupied commercial real estate



• Business acquisition with commercial real estate



• Franchise acquisition with commercial real estate



• Refinancing may be available on eligible commercial mortgage loans



• Equipment, inventory and working capital financing available with a 7(a) loan

Program Highlights

• Up to $5,000,000



• Longer loan terms - 20 to 25 years



• Up to 90% financing



• Fully amortizing - no balloons

CIT Bank - Small Business Lending is one of the nation’s leading providers of Small Business Administration (SBA) loans. We have been designated a Preferred Lender by the SBA which gives us the authority to make credit decisions on behalf of the US government. This enables us to process loans more quickly and efficiently than many other SBA lenders so you can get the financing you need quicker.

What is an SBA Loan?

The Small Business Administration (SBA) makes loans available through participating lenders to eligible small businesses on favorable terms. The SBA offers these loans because it recognizes the importance of our nation’s small businesses.

SBA loans offer competitive rates and longer terms. In addition, they have no points, no balloon payments, and no pre-payment penalties on loans with terms less than 15 years.

Here are some of the most common uses of SBA loans:

• Purchasing or expanding real estate
  
  
• Buying a business or franchise
  
  
• Purchasing machinery and equipment
  
  
• Leasehold improvements
  
  
• Refinancing certain existing business debt
  
  
• Working capital in conjunction with the above

Who is Eligible?

Most for-profit small businesses are eligible for an SBA loan. These include manufacturing, wholesale, retail and service businesses, as well as independent or franchise businesses.

For general eligibility guidelines click on one of the products above. 

Click on the one of the product above to see details.

What are the interest rates and fees?

CIT Bank - Small Business Lending offers variable and fixed interest rates for both SBA 7(a) and SBA 504 loans. Your actual rate will be determined by a number of factors including the project size, projected loan term and the borrower’s credit profile, but the rate will never exceed The Wall Street Journal prime rate plus 2.75%, as specified by the SBA.

There are no points on an SBA 7(a) loan, although there is a low packaging fee. There is also an SBA guarantee fee that can be as low as 1.7% of the amount borrowed and it varies depending on the size of the loan. This guarantee fee can be financed as part of the loan and is paid upon closing.

What are the terms of repayment?

Please select the product above to see details.

What do I need to qualify?

The SBA needs proof that the owner is active in the business and is willing to make a reasonable commitment to it. Here are the most significant criteria that CIT Bank - Small Business Lending and the SBA look for:

• The owner must invest up to 30% and as little as 10% in a new or start-up business.
  
  
• The owner must be actively involved in the management of the business.
  
  
• All principals must show a satisfactory credit history.
  
  
• The business must demonstrate an appropriate debt/net worth ratio and adequate cash flow.

How long does it take to get approval?

Since CIT Bank - Small Business Lending has Preferred Lender status in most SBA districts, it can be just a matter of 24 hours for the SBA’s decision once we credit-approve a loan.

How should I apply?

The quickest way to apply for a SBA loan or to get more information is to submit a loan details form or call us toll-free at 1-800-713-4984. We look forward to working with you.