As a small business owner, you play a vital role in our nation’s economy, and you provide jobs for the vast majority of U.S. workers. So it’s important that entrepreneurs like you get the necessary financing. That’s why Landen Capital has a marketplace of various lenders to offer you the financial support that conventional loans can’t.
SBA loan programs are backed by the federal government and provide a more flexible loan structure, more time to repay and lower down payments. There are several SBA business loan options available.
|SBA 504 Loan||SBA 7(a) Loan|
|Description||Great for long-term needs like, buying commercial real estate, starting your business and constructing or renovating facilities. Less equity required vs. a conventional business loan.||The SBA's primary loan program offers growing businesses long-term financing for a wide range of needs, from real estate to working capital.|
|Loan Amount||Projects considered up to and potentially exceeding $10 million||Up to $5 million|
|Maximum Term||Up to 25 years||5-7 years for working capital; up to 25 years for real estate; 10 years for all other loans (i.e., fixed assets and equipment)|
|Collateral||The SBA doesn't require a specific level of collateral. Generally the assets being financed are used as collateral. Personal assets may be required if the assets being financed do not adequately secure the loan. Even if you've already committed your available business and personal assets, you may still qualify for SBA financing.|
|Use of proceeds||*Purchase, construct or refinance commercial real estate
*Buy machinery or large equipment
|*Purchase, construct or refinance commercial real estate
*Buy Machinery and equipment
*Acquire a new business and/or buy out a partner
*Get access to working capital
|Interest Rates||Competitive fixed or Variable Rates||Variable Rate, no balloons|
|Eligibility||*For-profit business , non-publicly traded businesses
*Tangible business net worth (including affiliates) not to exceed $15 million
*Average net income of the business not to exceed $5 million over the previous two years
*Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)
*Sufficient business and personal cash flow to service all debt payments, demonstrated by 3 years of tax returns and interim financial data
*No delinquencies and/or defaults on government loans
*Non-profits (except sheltered workshops)
*Passive holders of real estate and/or personal property
*Lending institutions (mortgage brokers and correspondent lenders are eligible)
*Life insurance companies (franchised agents are eligible)
*Businesses located in a foreign country
*Businesses selling products or services through a pyramid plan
*Businesses which restrict patronage
*Government owned entities (excluding Native American tribes)
*Businesses that have previously defaulted on a Federal loan
*Businesses engaged in political or lobbying activities
If you don’t meet the requirements to qualify for a SBA loan right now, we can help! We’ll work with you to help you improve the critical factors of your business, like credit scores or cash flow that can help you to qualify in the near future.
Check out our Small Business Blog for helpful resources about raising your scores and improving your likelihood of getting funded.
Landen Capital makes the process easier! From application to approval to loan closing - we will walk you through the process, supporting you and making it as simple as possibly to secure the funding you need to grow your business.