SBA Loan Center
Arizona Financial is a Preferred Lender. This means you get a better experience and that you are choosing a real professional in SBA lending. When it comes to business loans offered with a government guarantee—SBA loans and USDA loans, in particular—there are various financing options available to suit the different needs of small business.
Each has their own particular requirements, stipulations and terms, which is why the first question out of a lender’s mouth is usually, “what are you hoping to finance?” Understanding how you intend to use proceeds from the loan quickly tells them which type of loan is likely to be a good fit.
Learn some of the major differences with this simple chart.
LOANS AT A GLANCE
SBA 7(a) LOAN
SBA 504 LOAN
USDA B&I LOAN
Maximum Loan Amount
Financing up to $5 million
CDC maximum loan range from $5MM to $5.5MM based on type of business
Financing up to $500,000
Financing up to $20 million
Maximum Interest Rates
Loans less than 7 years maximum rate is WSJ Prime + 2.25%.
Loans greater than 7 years WSJ Prime + 2.75%.
Bank Loan: No pricing restrictions.
CDC Loan: based on debenture pricing.
Loans $50,000 or less WSJ Prime + 6.5%.
Loans over $50,000 WSJ Prime +4.5%.
No pricing restrictions.
Use of Loan Proceeds
Term Loan. Can be multiple use of proceeds to consist of:
- Purchasing commercial real estate
- Construction, leasehold improvements
- Inventory debt refinance
- Working capital
- Starting a business
Long Term fixed asset loans secured by real
estate (or equipment with useful life of 20
years or more).
Working Capital. Can be used for other purposes same as a 7(a) on an exception basis.
Owner occupied or investor commercial real estate. Purchase, refinance , construction
or renovation of a building.
75% guaranty for loans greater than $150,000. 85% guaranty for loans of $150,000 or less.
Maximum individual guaranty $3.75MM.
Project Financing as follows:
50% Bank Loan
40% CDC Loan
10% Equity from
Borrower (15% for special use property).
Up to 80% guaranty.
0% to 3.75% tiered based on loan amount.
Bank Loan: .5%
CDC Loan: may charge up to 1.5%.
Same as SBA 7(a).
3% of guaranteed amount.
Varies depending on credit attribute’s. Generally working capital, machinery and equipment up to 10 years (depending on useful life of asset being financed). Real estate up to 25 years.
Bank Loan: 10 or 20 term. Can be fixed or adjustable rate. Can have balloon payment.
CDC Loan: 10 or 20 year term fixed interest rate.
2 year revolving period interest only draw period, followed by a 5 year term repayment.
Up to 40 years fully amortized.
Who is Eligible
Must be for profit business and meet SBA small business size standards.
Must have good character, credit, management and the ability to repay.
SBA Alternative Size Standards Test. Less than $15MM tangible net worth and do not have over $5MM average net income for last 2 fiscal years.
Same as SBA 7 (a).
Eligible for rural areas under 50,000 in population.
Benefits to Borrowers
Long Term financing (generally longer term than conventional loan), improve cash flow, fixed maturity, no balloons, no financial covenants.
Low down payment of 10% (15% for special use properties).
CDC loan offers long term fixed rate financing.
Fast turn-around, streamline process, easy to use line of credit.
Eligible for rural areas under 50,000 in population. Long term financing for larger projects.
As one of the Top SBA Lenders in the State of Arizona, we have significant experience. To speak directly to a loan officer, call us at 928-854-3000, or click the “contact a lender” button above. We’ll respond within 24 hours.
If you’d like to fill out a business credit application to expedite the process, simply click on the ” SBA Loan Application” link in the sidebar above. Once you’ve completed and signed the form, bring it to your closest branch, or scan and email us a copy.