5 Easy Steps to Access SBA Business Financing

How to Engage with the Go-to Webinar Interface

• Questions area in the task box• Type us a question so we know you understand• Ask us anything throughout the session

Intro: Tom Meyer

• Has been in the SBA Lending Industry for 16 years

• Has personally funded over 300 million in SBA loans

• Started Bridgeview Bank’s SBA Lending Division back in 4/2013

2008: Before the Lending Crisis… and After…!

Step 1 – Understanding loan programs – Overview of SBA Loans

”• SBA 7(a) – Flagship Program• Loan Sizes – up to $5MM

• Utilized for many business purposes• Real estate purchase, construction

and refinance• Business acquisition/partner buy-out• Equipment purchase, expansion and

start up financing • Combination of all - with one loan

• 7-25 Year terms and amortizations• Blended terms based on use of

proceeds• Lower equity requirements• No prepayments penalties for loans

under 15 years, 5%, 3%, 1% for loans over 15 years

Overview of SBA Loans

• SBA 504 Loan Program• Loan Sizes – up to $11MM for General Purpose Properties

• Utilized for real estate purchase, construction and refinance• Real estate purchase or construction

• Fully fixed rates

• 20 year terms and amortization

• Lower equity requirements

Elimination of the “Personal Resource Test”

The SBA dropped its personal liquidity requirements for 7(a) and 504 borrowers earlier this year

• The personal liquidity of owners 20% or greater no longer has to be reviewed

• In the past, owners with high personal liquidity may have been required to inject additional cash into the project

Why SBA Loans

• SBA loans provide longer terms and amortizations with no balloon payments

• They offer favorable interest rates• They allow a borrower to put down less equity injection• Loans typically do not have covenants • Similar to a home mortgage, make the payment on time and minimal

lender involvement

• Grow your business• Acquire real estate, equipment other assets• Purchase an existing business• Several corporate executives leave corporate America and look to

purchase existing small businesses• Starting a new business

Step 2 – Where can I use the money?

Step 3 – Know Amount Needed

www.sbalendinghub.comOr call 855-SBAEasy

Step 4 – How Do I Prepare?What do I need?

• Corporate and Personal tax returns• Current personal financial statement• Current company financial statement• Debt schedule

Step 5 – Talk to an SBA Lending Professional

• Why• Saves time• No obligation• Quickly can qualify• No cost to know• Self qualify www.sbalendinghub.com

Sample Deals Done

• $3,719,000 -- Business Acquisition, Pet Supply Website• $4,023,000 -- Business Acquisition, Tool & Die Company• $1,137,000 -- Business and Real Estate Acquisition, Car Wash• $905,000 -- Real Estate Refinance, Bowling Alley• $2,800,000 -- Real Estate Construction, Auto Dealership• $260,000 -- Start-Up, Car Wash• $927,400 -- Business Acquisition, HVAC Company• $422,500 -- Real Estate Acquisition, Restaurant• $1,240,000 -- Real Estate Acquisition, Doctor’s office• $492,800 -- Business and Real Estate Acquisition, Daycare

7a Loan Structure Business Acquisition

Acquisition purchase price $1,029,000Working Capital $100,000SBA guaranty fee $21,200Business Valuation $2,500Closing Costs $6,500

Total Project Cost $1,159,000

Financing Structure Amount Rate Term Pmt. BBG SBA 7a loan (70%) $809,200 6.00% 10 yr. $8,983 Borrower equity (25%) $300,000 Seller Note (5%) $50,000

- 10 year term and amortization- Collateral position 20%- Cash Flow coverage ratio: 2.02x 2012, 2.27x 2013, 1.34x 2014, 4.59x in 2015 interim

Business Acquisition Example: Custom Lighting Manufacturer

7a Loan Structure Real Estate and Construction Loan

Land Acquisition $800,000Working Capital $300,000Construction $2,600,000SBA Fees $73,000

Total Project Cost $3,773,000

Financing Structure Amount Rate Term Pmt.

• BBG SBA 7a loan (78%) $2,684,500 6.00% 25 yr. $17,297 • Borrower Equity (22%) $790,500• Express Line $300,000

- Collateral position 100%- Cash Flow coverage ratio: Business Start-up

Real Estate Construction Loan Example: Urgent Care

7a Loan to Start Up a Business

Leasehold Improvements $13,750Inventory $105,000Furniture, Fixtures and Equip. $41,250Working Capital $54,000SBA Fees (Waived) $0Closing Costs $6,000

Total Project Cost $220,000

Financing Structure Pre 2009 Amount Rate Term

• BBG SBA 7a loan (68%) $150,000 6.00% 10 year• Borrower equity (32%) $70,000

Start-up Retail Bicycle Shop

Borrowers can instantly find out if they pre-qualify for a

SBA loan through SBALendingHub.com.

Getting pre-qualified is as easy as 1-2-3!

1. Plug information into our short intake form2. Get follow up information regarding business interests3. Receive the results of pre-qualification

SBA Lending Hub is powered by TomScore™, a simple yet powerfulscoring model for confidentially prequalifying potential borrowersfor SBA loans.

SBA Lending Hub Powered by TomScore™

Bridgeview Bank Group

• Chicago hometown community bank• 14 locations• $1.0 Billion in Assets• #5 SBA 7a and 504 lender in 2014

Review - 5 easy steps

• Understanding the SBA loan programs• Know what the SBA loan money can be used for.• Know the amount you need• Understand how to prepare • Talk to an SBA lending professional

Who to Contact?

Tom Meyer224-543-4047 office847-899-3793 cell thomas.meyer@bridgeviewbank.com

Andy Lynch224-543-4058 officeandrew.lynch@bridgeviewbank.com1175 Corporate Woods Parkway, Suite 100Vernon Hills, IL. 60061