We offer SBA financing for:
- Real estate loans for expansion or relocation of your business
- Purchase of equipment
- Working capital
U.S. Small Business Administration (SBA) - Financing is available to assist businesses obtain financing when conventional bank financing is not available with the terms the business needs. The SBA is an agency of the federal government.
SBA 7(a) Loans - New businesses, businesses undergoing a transition that is negatively impacting their cash flow, businesses that need some special repayment terms or those which lack the required collateral many times find conventional financing unavailable. In those cases, an SBA (7A) guarantee provides added support that allows the bank to make available the financing with the necessary terms.
7(a) financing includes loans for equipment, working capital and real estate.
Rates and terms depend on the purpose of the loan and the borrower qualifications.
You will originate your request for SBA financing with your Grand Valley Bank lender. Once approved by the bank, the lender will forward the request on for the SBA approval. The SBA approval can take several days to several weeks.
Borrowers pay an SBA guarantee fee and bank packaging fees. Ask your lender for details.
SBA 504 Loans - When a business does not have the capital to fund the typical 25% down payment that is required for conventional bank real estate financing, the 504 program can provide financing with as little as 10% down. This program is a partnership between Grand Valley Bank and the SBA. The bank will carry a 1st lien on the real estate while the SBA provides a loan with a 2nd lien. This allows the bank to maintain their loan within their necessary loan to value ranges. In some cases the bank would provide 1st lien financing of up to 50% loan to value while the SBA would provide 2nd lien financing of up to 40%. In that case total financing would be 90%.
The interest rate on the SBA portion of your financing will be fixed at a low interest rate. There are some loan origination costs as well as monthly fees that will apply. The interest rate on the bank portion of the financing will be adjustable.
Contact your Grand Valley Bank lender for details.