Start expanding or building your business today with an SBA loan. These loans are guaranteed by the U.S. Small Business Administration (SBA), an organization dedicated to providing short- and long-term loan guarantees.
Plus, as part of the National Penn family, and their status as a Preferred/Express Lender, we have the authority to approve, process and service loans without obtaining prior SBA* approval. The bottomline is you enjoy faster turnaround and better service.
Who qualifies?
Existing businesses, start-ups, and individuals purchasing a business can qualify for SBA loans, as long as they meet certain criteria.
- Existing Businesses: expanding or leveraging
- Start-ups: some initial equity required, as well as a business plan, list of financial resources and collateral, and resumés for the owners
- Purchase of an Existing Business: SBA* typically finances up to 80% of tangible assets
Industry-based SIZE standards
The SBA* also establishes maximum size standards for most industries. Generally, the standards are:
- Manufacturing: 500 employees, but can go as high as 1,500
- Wholesale Trade: 100 employees
- Retail & Service: $5 million in annual revenues
- Construction: $17 million in annual revenues
- Agriculture: $0.5 million in annual revenues
Because some industries have alternative or unique size standards, talk to your Relationship Manager regarding possible exceptions to program parameters.
LOAN amounts
Besides the amounts listed here, the SBA* offers a variety of loans that can be tailored to meet your specific needs
- Regular Loans: up to $2 million with a 75% guarantee (maximum $1 million guarantee)
- Low Documentation (LowDoc) Loans: up to $150,000 with an 85% guarantee and only a small amount of paperwork
- SBAExpress Loans: up to $150,000 with a 50% guarantee
- SBA 504 Loans: up to $1 million guaranteed by the SBA, representing 40% of the total project
LOAN uses
An SBA loan can be used for working capital, to purchase equipment or real estate, or to refinance existing debt.
- Working Capital: term loans of 3-5 years
- Purchase Equipment: term loans of 5-10 years
- Purchase Real Estate: term loans of 15-25 years
- Refinance Existing Debt: various terms, for business debt only and the refinance must result in a minimum of 20% improvement in cash flow
HOW the SBA loan process works
First, your Relationship Manager will prepare an application to determine your eligibility. If you are eligible, we (and in some cases the SBA*) will consider your application for formal approval. Ask about the pre-qualification program for Minority and woman business owners.
