SBA Cleveland District Office SBA Loan Programs ODJFS Akron Mark Hansel, SBA (216-522-4191)...

SBA Cleveland District OfficeSBA Loan ProgramsODJFS Akron Mark Hansel, SBA (216-522-4191)September 22, 2009

SBA Cleveland District Office

SBA Cleveland District OfficeThe SBA GuarantyGuaranty loansNot a direct lenderMost banks are active


SBA Cleveland District OfficeSBA FinanceLender drivenGuaranty up to 90% under RecoveryUsually 50%-85%Max of $2 million for 7(a)


SBA Cleveland District OfficeThe Usual ProcessApply to the bankMay recommend SBA supportIf declined, find out why


SBA Cleveland District OfficeLikely SBA SituationsStart-upsChanges of ownershipCollateral shortfalls


SBA Cleveland District OfficeSBA EligibilityMust be smallGood character and creditUS citizen or LPRBusiness type


SBA Cleveland District OfficeTypes of BusinessFor profitActive, not passiveNo to certain types (like gambling)


SBA Cleveland District OfficeSBA Guarantee FeesWaived under RecoveryGraduated (2,3,3.5%)May be financed


SBA Cleveland District OfficeSBA Interest RatesReally a market rateUsual limits of P+2.25-2.75%May be higher under Express


SBA Cleveland District OfficeSBA Credit PolicyRepayment abilityHistoric or projected earningsReasonable projections


SBA Cleveland District OfficeSBA Collateral PolicyTake all usuallyMay be relaxed under Express


SBA Cleveland District OfficeWho Guarantees?20% or more ownership Perhaps under 20%


SBA Cleveland District OfficeSBA Loan Uses and TermsWorking capital up to 7 yearsEquipment up to 15 yearsReal estate up to 25


SBA Cleveland District OfficeThe Express FamilyRegular, Patriot and CommunityCan do lines and term loansLoan limits vary


SBA Cleveland District OfficeSBA Resourceswww.sba.gov1-800-U ASK [email protected] for Cleveland office


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