SBA

SBA Lending

Are you a business owner who needs help buying your building? Do you have equipment needs but not the money to buy it? Would some working capital be helpful for your business “next step”?
Want to Know More? Compare Your Options:

SBA & The Gneiting Captial Approach

  • SBA lenders and SBA loans are not all the same. Terms, programs, loan offers vary depending on the lending institution. Many business owners don’t know this so they go to their SBA lender and get the "deal" that lender is quoting where other lenders pricing or terms for the same loan may be better. For instance, some SBA lenders need two years of business tax return history to offer you a meaningful loan quote. Other SBA lenders can move forward with one year of business tax returns to give you a quote. While some SBA lenders, and these are few, do not require tax returns as a requirement and are willing to fund startup businesses that have no history. Some will fund off proformas
  • Each of rate, term, fixed or floating loan, and fees are each at some level SBA lender's decision. That means there are lots of choices for you, and many pitfalls. Some SBA lenders can offer you better choices than you might anticipate.
  • The U.S. Small Business Administration (SBA) works with lenders nationwide to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for its loans which are made by partnering lenders who lend direct to the business owner. The two types of SBA loans are a 504 loan or a 7a loan.
That’s where we come in. We help you sort out the details and the lenders to find the right money and best money to fit your specific business needs.
SBA Reduces Risk 
SBA reduces risk for the Bank or Credit Union Lending Partner by guaranteeing a portion of your SBA loan. Because of the guarantee, lenders are more willing to provide capital and borrower friendly terms to you. 
SBA lending is a real boon to the U.S. economy and the benefits to this type of lending are phenomenal. It makes it easier for you to get the funds you need to grow, sustain, and improve your business for many of your business needs: 1) Real estate acquisition or a refinance. 2) Construction of a new facility. 3) Equipment to improve business processes and profitability. 4) Working capital to help fund growth. And we aren’t just talking small dollars. You can receive up to $5.5 million of this preferred funding for your business if you qualify.
SBA Lending Partner, like 
a Bank or Credit Union
Your Loan to Grow
Your Business Growing
SBA Reduces Risk 
SBA reduces risk for the Bank or Credit Union Lending Partner by guaranteeing a portion of your SBA loan. Because of the guarantee, lenders are more willing to provide capital and borrower friendly terms to you. 
SBA lending is a real boon to the U.S. economy and the benefits to this type of lending are phenomenal. It makes it easier for you to get the funds you need to grow, sustain, and improve your business for many of your business needs: 1) Real estate acquisition or a refinance. 2) Construction of a new facility. 3) Equipment to improve business processes and profitability. 4) Working capital to help fund growth. And we aren’t just talking small dollars. You can receive up to $5.5 million of this preferred funding for your business if you qualify.
SBA Lending Partner like 
a Bank or Credit Union
Your Loan to Grow
Your Business Growing


SBA Lending: 
A Comparative Analysis between 504 and 7a Loans. 

Different business needs require different solutions and that is what the at-a-glance chart below highlights. Gneiting Capital can help you sort through the details of each to get you to the loan or loan options that best fit your specific situation. We empower you through a consultative education approach so you can make the right decision.

With an SBA 504 loan, money can be used to acquire a building, finance a new building's construction or your building's improvements, or purchase equipment. A 7a loan can be used to acquire a building, generate working capital for expansion or growth, refinance current business debt, or purchase furniture, fixtures, and equipment, or supplies.

Find your 
loan solution

Compare lending options to fit your needs
504 7a Conventional
Purpose Commercial real estate and / or Equipment that support a Business Enterprise Commercial real estate, Equipment, Business acquisition, or Working capital that support a Business Enterprise Varies widely. For commercial real estate investor purchase or refinance or for business needs. Either one.
Lender Type SBA Partner Lender like a Bank or Credit Union & a CDC* SBA Partner Lender like a Bank or Credit Union Banks, Credit Unions, Life Insurance Companies, CMBS, Government Agencies, Bridge Lenders, Private Money Lenders
Borrower Type Business owner Business owner Business owner or commercial real estate investor
Project Size $20MM + Maximum $5.5MM No Maximum
SBA Loan Size Up to $5.5MM Up to $5.5MM Not Applicable
Down Payment 10% Minimum 10 - 15% Minimum 25% Minimum
Interest Rates Part of the Loan is at a Below Market, Fixed Rate for 20 Years Typically Variable Rate tied to an Index Varies by Lender
Fixed or Floating Rate Fixed rate Fixed or Floating rate Typically a Floating Rate tied to an Index but can be Fixed
Term 1st Loan: Up to 25 years 2nd Loan: 20 years fixed Up to 25 years real estate Up to 10 year business acquisition or equipment 5 to 7 years working capital 10 to 30 years but typically 25 years
Additional Collateral? 25 years real estate 20 years real estate Depends on Loan-to-Value. Sometimes no, sometimes yes Usually no
Prepayment Penalty Yes Yes Depends on the Lender but can be either No or Yes.
Program Requirements 51% owner occupancy if an existing building. 60% owner occupancy if new construction. 51% owner occupancy if an existing building. 60% owner occupancy if new construction. Varies by Lender
Guarantees Personal Recourse Guarantee by any Owner with 20% or more ownership Personal Recourse Guarantee by any Owner with 20% or more ownership Most often Personal Recourse Guarantee but can be Non-recourse

*What is a CDC (part of a 504 loan)? A Certified Development Company (CDC) is a nonprofit corporation that promotes economic development within its community through 504 Loans. CDCs are certified and regulated by the SBA, and work with SBA and participating lenders (typically banks) to provide financing to small businesses, which in turn, accomplishes the goal of community economic development.


SBA & Energy Efficiency


SBA & Energy Efficiency

Lower Occupancy Costs

Adding energy efficient upgrades when you buy, build or renovate a building can dramatically lower your occupancy costs and SBA recognizes the value that brings to our environment through their SBA energy-efficiency program. It increases the overall amount an individual can borrow from the SBA.

How to Qualify

There are two ways to qualify for additional SBA financing through this program:

#1 - Reduce

Reduce energy consumption by 10% by installing energy-efficient lighting, new windows, insulation, HVAC or energy-efficient equipment may reduce energy usage and qualify you for the SBA energy-efficiency program.

#2 - Generate

Generate renewable energy or renewable fuels that will provide at least 10% of your energy use. Good examples are installing solar panels and/or wind turbines.


SBA & Veterans

WORKING TOGETHER

One of the policy goals of the U.S. Small Business Administration’s 504 loan program is to expand small businesses owned or controlled by veterans, especially service-disabled veterans. Enjoy all of the same benefits as traditional SBA borrowers while also receiving extra Veteran’s only benefits when entering into an SBA loan.

A down payment as low as 10% keeps your cash available for other business expenses
No maximum loan amount & No additional collateral required
Below-market, FIXED interest rates, amortized over 25 years
Closing and other soft costs can be added to loan
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