SBA Loans | Regent Bank

SBA loans move faster here.

In-House Processing = Faster Turnaround Times.

As an SBA Preferred Lending Provider, Regent Bank has established a proven track record with the Small Business Administration and has shown its commitment to serving the needs of small businesses within our communities. Being an SBA Preferred Lender allows us to approve in-house SBA loan requests within just a few days. Decision times on SBA loans are substantially reduced – up to 30 days faster than non-preferred lenders – which means we can quickly get you the capital your company needs to grow.

We know that time is money and we have the tools and resources to help us act fast on your loan, something many other banks just don’t have.

You work directly with us and we maintain the relationship with the SBA, helping to make the process easier on you.

SBA Loan Programs Can Assist With:

Owner-Occupied commercial real estate purchase and construction
Business expansion or acquisition
Partner or management buyout
Equipment financing
Debt refinance
Inventory purchase
Furniture
Machinery
Business startup costs
Working capital & more.

SBA7a Program

As an SBA Preferred Lender, Regent Bank is able to process your SBA loans quicker and more efficiently than the competition since many decisions can be made locally and without having to be sent directly to the SBA for approval.

Eligibility

Most For-Profit Small Businesses, including manufacturers, wholesalers, retailers and service businesses, as well as independent or franchise businesses are eligible for 7(a) loans.

Qualifications

Retail & service businesses with 3-year average sales not exceeding $6.5 million to $32.5 million
Wholesale businesses with up to 100 employees
Manufacturers with employees up to 500

Use of Proceeds

Commercial real estate (purchase, construction or renovation)
Business acquisition
Machinery, equipment, furniture or fixtures
Leasehold improvements
Working CapitalStart-up (franchise, professional business/practice)
Refinance real estate

Loan Size

$50,000 – $2,000,000

Terms

Up to 25 years for real estate purchases
Up to 10 years for business acquisitions (without real estate)
Up to 10 years on franchise start-ups (without real estate)

Down Payments

As little as 10% for commercial real estate purchases
Business acquisitions as low as 10%
Business start-ups from 10% (franchise, professional business/practice)
As little as 0% for most refinance

SBA 504

The SBA 504 Loan program is a powerful economic development loan program that offers small businesses another avenue for business financing, while promoting business growth, and job creation. As of February 15, 2012, the $50 Billion in 504 loans has created over 2 million jobs. This program is a proven success and win-win-win for the small business, the community and participating lenders.

The 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization.

Structure

504 Loans are typically structured with SBA providing 40% of the total project costs, a participating lender covering up to 50% of the total project costs, and the borrower contributing10% of the project costs. Under certain circumstances, a borrower may be required to contribute up to 20% of the total project costs.

An example of how a typical 504 loan is structured follows:

Building Purchase
Land
Renovation
Furniture and Equipment
Soft Costs
Total $1,000,000
Loan Structure
$500,000, 1stlien with bank (loan obtained from Regent Bank covering up to 50% of the total project cost)
$400,000, 2ndlien with 504 loan, 20 year, fixed rate (funded through an SBA-guaranteed debenture, covering up to 40% of the total project cost)
$100,000, borrower contribution (contribution from the borrower of at least 10% of the total project cost/)

Eligibility

To be eligible for a 504 Loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies if it has a tangible net worth not more than $15 million, and an average net income of $5 million or less after federal income taxes for the preceding two years prior to application.

Use of Proceeds

To be eligible for a 504 Loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business The use of proceeds from 504 Loans must be used for fixed assets (and certain soft costs), including: if it has a tangible net worth not more than $15 million, and an average net income of $5 million or less after federal income taxes for the preceding two years prior to application.

The purchase of existing buildings;
The purchase of land and land improvements, including grading, street improvements, utilities, parking lots and landscaping;
The construction of new facilities or modernizing, renovating or converting existing facilities;
The purchase of long-term machinery ; or
The refinancing of debt in connection with an expansion of the business through new or renovated facilities or equipment.

Specifics

Maximum Loan Amount (Debenture)
While there is no maximum project size, the maximum SBA loan amount (debenture) is $5 million. Small manufacturers or specific types of energy projects (as described in the energy project section) may qualify for a $5.5 million debenture. Generally, a business must create or retain one job for every $65,000 guaranteed by the SBA. Small manufacturers must create or retain a ratio of one job for every $100,000. As an alternative to job creation or retention, your business may qualify if it meets a community development or public policy goal as long as the CDC maintains its portfolio job average requirements.