Call Steve to find the best SBA loan advisor anywhere!
SBA Loans in Colorado Springs are mortgages for small businesses that are insured by the Small Business Administration. SBA loan proceeds may be used to finance any of the following:
- Purchase of land and building including construction and renovations
- Furniture and fixtures
- Machinery and equipment
- Working capital
- Business Acquisition & franchise lending
- Refinancing of existing debt
- Closing Costs
The Small Business Applicant must be:
- An operating business
- Organized for profit
- Located in the United States (includes territories and possessions)
- Small (as defined by SBA)
- Able to demonstrate a need for the desired credit
The following businesses are NOT eligible:
- Non-profit businesses (for profit subsidiaries are eligible)
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors
- Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies)
- Life insurance companies;
- Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify)
- Pyramid sales distribution plans
- Businesses deriving more than one-third of gross annual revenue from legal gambling activities
- Businesses engaged in any illegal activity
- Private clubs and businesses which limit the number of memberships for reasons other than capacity
- Government-owned entities (except for businesses owned or controlled by a Native American tribe)
- Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting
- Consumer and marketing cooperatives (producer cooperatives are eligible)
- Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans
- Businesses with an Associate who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime of moral turpitude
- Businesses in which the lender or any of its Associates owns an equity interest
- Businesses which present live performances of a prurient sexual nature; or derive directly or indirectly more than 5% of their gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature
- A business or applicant involved in a business which defaulted on a Federal loan or Federally assisted financing resulting in a loss to the government. A compromise agreement shall also be considered a loss
- Businesses primarily engaged in political or lobbying activities
- Speculative businesses (such as oil wildcatting)
General Terms
Loan Amount: Loan amounts may not exceed $5,000,000
Down Payment: 10-25% depending on proceeds. Real Estate (10-15% typically), non real estate transactions (20-25% typically)
Maturity: 7 to 25 years (depending on proceeds), fully amortizing. No balloon payments.
Interest Rate: Base Index in WSJ Prime + spread (spread can’t exceed 2.75%)
Prepayment: 3 years (Yr 1-5%, Yr 2-3%, Yr 3-1% of unpaid principal balance)