Eligibility
True or False - for SBA loans, down payment funds have to be seasoned in a bank account for 2 months.
What is false, as of August 1, SBA no longer requires seasoned down payment funds.
This is the SBA eligibility guidebook, the "SOP"
What is the "Standard Operating Procedure"
This loan has two lenders - a bank (or finance company) and a CDC or Certified Development Company
Start up permanent make up company, the down payment was coming from the inheritance of the business owner's husband. The business owner filed bankruptcy two years before applying to buy her building.
What is - No deal.
True or false - individuals with criminal backgrounds cannot receive SBA guaranteed funds?
false - it is up to the lender to determine whether it wants to lend to an individual with a criminal background
This business entity has been in operation less than two years.
What is a Start-up.
This loan can only be used for fixed assets - equipment, real estate, construction, refinancing debt associated with business expansion (facilities & equipment)
what is 504
The business owner showed no historic ability to pay the mortgage and needed projections that included rental income from leasing out part of the building to pay the mortgage. 23% down payment.
What is - Deal
True or false - SBA 7a (usually adjustable rate) loans cannot be refinanced with SBA 504 loans (fixed rate)
what is 7a
Building has to be 51% owner occupied within 12 months
What are both - 504 and 7a