(In)Eligibility
Get your bag, boss! Only this type of business is eligible for SBA financing
What are for profit businesses?
Want to be the line leader? When the use of proceeds includes these, Commerce Bank must take a first lien position
What are fixed assets?
Make it rain! SBA loans require this when approving a loan; just collateral won't cut it.
What is a reasonable assurance of repayment from business cash flow?
Is that million with an M? Don't ask for more than this amount of SBA financing per borrower.
What is $5,000,000?
This exists when one individual or entity controls or has the power to control another; or a third party or parties controls or has the power to control both.
What is Affiliation?
Fortune 500 companies need not apply. SBA Eligible businesses must pass this test to qualify.
What is the size standard test?
An SBA loan may not be declined solely on this basis.
What is a lack of collateral?
Show some skin in the game. SBA requires a minimum equity injection of this percent of the project for start ups.
What is 10%?
Most SBA loans have a guaranty percentage of 75% or higher, except this type of loan, which has a guaranty of only 50%
What is an SBA Express Loan?
Mr. Worldwide! This program allows the lender to use foreign accounts receivable as collateral.
What is the Export Working Capital Program (EWCP)?
If borrowers can't find conventional financing with similar terms, they likely will pass this test.
What is the credit elsewhere test?
SBA considers a loan fully secured when the lender has this in place.
What is a lien on assets with an adjusted book value = or > the loan amount.?
Schoolhouse Rocks says it's a magic number! SBA requires this many years of historical financials.
What is 3?
This isn't a birthday party! SBA loans are prohibited from having this common loan feature.
What is a balloon?
No guarantees in this loan program; SBA offers a subordination instead.
What is the 504 program?
An EPC is the only business of this type that is eligible for SBA financing
What is a passive business?
We're coming home! When a loan amount is greater than $350,000 and the loan isn't fully secured, we must take a lien on this
What is personal real estate?
Can you pay my bills? For SBA loans over $350,000, a minimum debt service coverage ratio of this is required.
What is 1.15 (can also include global of 1.0)
How low can you go? If you add an interest rate floor to a loan, SBA requires this borrower friendly feature.
What is a corresponding rate ceiling?
Use this to find out if a Helen's Hot Chicken franchise is eligible for SBA Financing.
What is the SBA Franchise Directory?
Businesses owned by non-U.S. Citizens may be eligible if they are located here, a requirement for all SBA borrowers.
Where is The United States?
To receive or not to receive. On term debt SBA only gives a collateral margin value of 10% for these risky assets.
What are Accounts Receivable (also allowable: trading assets)?
You'll need this forward thinking document for all SBA loans above $350,000
What is a pro-forma balance sheet?
If your borrower wants a term longer than 10 years, the loan package must include this collateral type
What is Commercial Real Estate?