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SBA Loan Benefits
From business acquisition to start-up financing, to ground-up construction, and every stage in between, SBA financing can be a smart way to finance a range of business endeavors.
Backed by the Small Business Administration (SBA), a government agency that provides support to entrepreneurs and small businesses, this type of lending offers advantageous benefits compared to conventional business loans.
With SBA-backed financing from Huntington, you could receive:
- Longer Terms to Increase Cash Flow
- No Balloon Payments
- Down Payments as Low as 10%
- No Loan Covenants or Monitoring Requirements
- Maximum Loan Amounts of $5 Million
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What is a 7(a) loan?
The 7(a) Loan Program, SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses with special requirements. 7(a) loans can be used for:
- Acquiring, refinancing, or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installation of machinery and equipment, including AI-related expenses
- Purchasing furniture, fixtures, and supplies
- Changes of ownership (complete or partial)
- Multiple purpose loans, including any of the above
The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs. This also includes recommending you for an SBA 7(a) Working Capital Pilot (WCP) loan, if your business qualifies.
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7(a) Working Capital Pilot (WCP) program
Beginning August 1, 2025 SBA’s 7(a) WCP is a pilot loan program that offers monitored lines of credit within the 7(a) loan program.
7(a) WCP has been engineered to:
- Support a range of financing needs for growing small businesses
- Bring together the best features of the existing permanent 7(a) line of credit delivery methods
- Provide financing for domestic and/or export purposes
- Offer one-on-one counseling with SBA’s subject-matter experts to both small businesses and lenders
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What is an SBA Express Loan?
An SBA Express loan offers up to $500,000 in financing with a streamlined application process, often resulting in quicker approval and funding decisions compared to traditional 7(a) loans. These loans can be used for various business needs like working capital, expansion, equipment, or refinancing.
Key Features of SBA Express Loans:
- Loan Amount: Up to $500,000.
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Speed: Faster processing and approval compared to standard 7(a) loans, sometimes within a few days.
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Guarantees: The SBA guarantees a portion of the loan (up to 50%).
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Collateral: May not require collateral for loans up to $50,000.
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Eligibility: Businesses must meet SBA size standards, be creditworthy, and demonstrate the ability to repay the loan.
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Interest Rates: Variable interest rates, typically capped at WSJ Prime Rate + 4.5% for loans over $50,000.
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Term: Up to 10 years for working capital and equipment, up to 25 years for real estate.
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Use of Funds: Working capital, equipment purchases, business expansion, and debt refinancing.
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Lender: SBA Express loans are processed through participating lenders.
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No Direct SBA Approval: Lenders can utilize their own underwriting processes, which contributes to the faster turnaround time.
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Personal Guarantee: May require a personal guarantee from the business owner.
What is a Microloan?
The microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000.
SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.
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What is the 504 loan program?
The 504 loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.
504 loans are available through Certified Development Companies (CDCs), SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.
The maximum loan amount for a 504 loan is $5.5 million.
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Workboat Capital has established relationships with dozens of financial service providers who can provide the right financial structure for nearly every commercial boat, yacht, ship owner company. We finance boats for consumer use, if they are owned by a commercial entity (such as a Yacht Charter Business, a boat club or boat rental business.) We do not finance boats for consumers.
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