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.

SBA Programs - 7a, 504

Size of Loans: $100,000 (Minimum)      $750,000 (Average)         $2 Million (Maximum)

Industry Preferences: Gas Station/Convenience Stores; Restaurants; Owner Occupied Businesses.

Franchise Preferences: Any of them approved by SBA.

Industry Exclusions: Used Car Sales

Franchise Exclusions: UPS Stores, Philly Connection

Geographic Preferences:  State of GA

Collateral (range % loan): 50% to 100%

Credit score minimum: Summit Bank does not score.