FINANCING

United States Small Business Administration’s mission is to maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

7a Loan Program
Loan Amount	$2,000,000 with a $1,500,000 loan guarantee
Use of Funds	Working capital or fixed assets
Term of Loan	Typically 5-25 years
Rate of Interest	2.75% over New York prime if more than 7 years, and 2.25% if under 7 years. Rates are fixed or variable. For smaller loans under the Express lending program, rates can go 6.5% up to $50,000 and 4.5% on loans over $50,000
% of Financing Available	Based on industry standard
Down Payment (Equity)	30-45% of project
Typical Structure	Guarantees are up to 85% for loan up to $150,000 and 75% for loans over $150,000, 50% for those made under the SBA Express program
How Long Does it Take	2 to 4 weeks
Collateral	Negotiable, typically second mortgages or second UCC filings
Personal Guarantees	Yes on everyone who owns 20% or more of the company
Eligible Businesses	Any small business, organized for profit, defined by SBA with exceptions
Ineligible Businesses	Those not meeting SBA requirements
Job Creation Criteria	None
Incentives	Long Term Access to credit
Fees	1% - 3.5% of guaranteed portion of the loan

For more information on this program, contact BLADC or visit the SBA’s web site.

Brainerd Lakes Area Development Corporation

Minnesota

888-322-5232 or 218-828-0096

email us

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