SBA Programs

How SBA Helps Small Businesses Get Loans

Discover the wide array of SBA lending options available for all types of loans. Whether you're starting a new venture, acquiring a business, expanding your operations, or even refinancing existing debt, our SBA loans can provide the financial support you need. Our team of experienced SBA Loan Officers will walk you through the eligibility requirements and help determine if an SBA loan is the right fit for your business. With equity injections as low as 10%, we make accessing funds easier than ever. Explore our comprehensive range of commercial banking products that perfectly complement our SBA lending solutions.

SBA - 7(a) Loans

The 7(a) loan program is one of the most popular loans utilized by small businesses. The use of proceeds may include:

• Acquisition, expansion, renovation, or construction of Owner Occupied Commercial Real Estate
• Purchase Equipment & Machinery
• Working Capital
• Business Acquisition

SBA - 504 Loans

The SBA 504 Loan program is a dynamic and impactful economic development initiative that offers small businesses a valuable avenue for securing business financing while fostering growth and job creation. Approved small businesses can access long-term, fixed-rate financing through the 504 Loan Program, which can be used to acquire fixed assets for expansion or modernization. These loans are made available through Certified Development Companies (CDCs), and the typical structure involves Levo Credit Union covering up to 50% of the total project costs, the SBA providing 40% of the total project costs, and the borrower contributing 10% of the project costs. In certain cases, borrowers may be required to contribute up to 20% of the total project costs.

The use of proceeds from 504 Loans must be used for fixed assets (and certain soft costs), including:

• The purchase of existing buildings
• The purchase of land and land improvements, including grading, street improvements, utilities, parking lots, and landscaping
• The construction of new facilities or modernizing, renovating, or converting existing facilities
• The purchase of long-term machinery and equipment with a useful life of over 10 years

The 504 Loan program offers small businesses both immediate and long-term benefits which may include:

• Up to 90% financing
• Longer loan amortizations, no balloon payments (Equipment up to 10 years, Real Estate up to 25 years)
• Fixed-rate interest rates
• Projects up to $12,000,000

To qualify for a 504 Loan, your business must be profit-driven and meet the size standards determined by the SBA. Under the 504 Program, a business is considered eligible if its tangible net worth does not exceed $15 million and its average net income, after federal income taxes, is $5 million or less over the two years before applying. Loans are not available for non-profit, passive, or speculative activities. Additionally, if the project involves an existing building, it must be at least 51% owner-occupied, while new construction projects must be at least 60% owner-occupied.

Contact us today and let us be your partner in taking your business to new heights. We are excited to assist you in reaching the next level of success.