Small Business Administration Loans
Congress created the Small Business Administration (SBA) over half a century ago to help small companies get started, expand, and prosper. Today, the SBA provides assistance to these companies by guaranteeing a portion of loan amounts and allowing longer terms for qualified borrowers.
Small Business Administration (SBA) loans can include construction/permanent commercial financing.
What are the advantages of an SBA loan?
There are many, including terms up to 25 years for land and buildings and up to 10 years for all other business purposes. SBA loans are assumable and carry no pre-payment penalties or call provisions. (For terms of fifteen years or more, pre-payment penalties apply during the first three years.)
What are the credit requirements for an SBA loan?
A loan applicant must show an ability to repay the loan in a timely manner, through past earnings records or future earnings projections. An applicant must demonstrate management ability and commitment necessary for a successful operation. The applicant must also have sufficient equity capital so that, with the SBA loan, the business can operate on a sound financial basis. Lastly, the applicant must provide adequate collateral.
Who is eligible for an SBA Loan?
The SBA defines a small business as one that is independently owned and operated, which is not dominant in its field and which meets certain criteria based on industry classifications. In laymen's terms, we work with most types of businesses in conjunction with this program. However, loans used to finance real property held solely for income or investment are not eligible.
How do I apply for a Small Business Administration (SBA) loan?
One call to our SBA department will get you started. We will assist you in determining the necessary information needed to submit your application. For our online application, please click here.
Getting the Process Started – 7(a) or 504 Loans
The following basic information is needed in order for MCB to make a preliminary evaluation of your SBA loan request. Although certain items may not be applicable to your business, you should be as thorough as possible in gathering the information. MCB’s application (see below) is very helpful in organizing the information. If you have questions concerning this list, please contact us.
- What size loan are you requesting? How will the loan be used? How long of a term (in years) are you requesting on the loan?
- If you are proposing to purchase real estate or an existing business, provide a copy of the purchase agreement (signed by both buyer and seller).
- Indicate the amount and sources of the equity (i.e., cash) to be injected into the business or project. (Minimum equity requirements apply for start-ups and business purchases.)
- Provide photocopies of any notes to be refinanced with the loan.
Company / Owner Information
- Provide a brief history and description of your business. (When was the business started, and by whom? What are your products and/or services? How has the business grown or changed? How many employees do you have? Who are your competitors?)
- Provide the legal name of the business, street address of the business, telephone number, and Employer Tax ID number.
- Provide the name, home address, Social Security number and percentage of ownership for any person having any ownership interest in the business. Include a resume for each owner, describing their educational and business background.
- Provide the business' interim financial statement. (Not more than 60 days old). (Include aging of accounts receivable and payable).
- Provide the business' historical financial statements and tax returns for the last three fiscal years, or since start up, whichever is less.
- Provide a personal financial statement for each individual owning twenty percent (20%) or more of the business. (If you do not have a personal financial statement form, contact Metro City Bank, and we will provide one to you). With each personal financial statement, provide complete copies of that individual's Personal Income Tax returns for the last three years.
- If you are purchasing an existing business, provide copies of that business' tax returns for the prior three years, or since inception, whichever is shorter.
MCB – SBA Loan Application
Please download the loan application forms below, once printed please complete all sections legibly and either fax to 770-455-4988 attention: SBA Department or drop by one of our branch locations.
We hope that the above information has answered most of your questions concerning SBA loans and that you will make Metro City Bank your first choice for your SBA loan. If you need further information, contact Metro City Bank, and ask to speak to a loan officer or call us at 770-455-4989.