SBA (7a) Loan

SBA 504 Loan

Loan Size

  • Up to $5,000,000
  • $125,000 to $10,000,000 +

Loan Structure

  • 80% - 90% Bank Loan
  • 10% - 20% Down Payment
  • 50% Bank Loan
  • 30% - 40% CDC Loan
  • 10% - 20% Down Payment

SBA Guarantee

  • Loans with maturities greater than 12 months; up to 75% guarantee
  • Loans with maturities less than 12 months; up to 75% guarantee
  • 0% Bank Loan
  • 100% CDC Loan

Interest Rates

  • Fixed Variable, or Combination
  • Fully Amortized - No Balloon
  • Index: WSJ Prime, 10 Year Treasury Index
  • Maximum rate: Index +2.25% if maturity is < 7 years
  • Maximum rate: Index +2.75% if maturity is 7 years or more
  • For loans: – $25,001 – $50,000 + 1.00% – $25,000 or less + 2.00%
  • Fix or Variable on Bank Loan
    Fixed on the CDC Loan
    Rate negotiated on Bank Loan
    Rates on CDC portion are set monthly at the time of funding

Loan Term

  • Real Estate — up to 25 years
  • R/E improvements — up to 25 years
  • Equipment — up to 15 years
  • Leaseholds — up to 10 years
  • Working Capital — up to 7 years
CDC Loan:
  • Real Estate - 20 years
  • Equipment - 10 years
Bank Loan:
  • Real Estate - 10 years
  • Equipment - 7 years

Loan Proceeds Use

  • Purchase Land & Building
  • Construction, Renovations, or Leasehold improvements
  • Furniture and Fixtures
  • Machinery and Equipment
  • Inventory and Working Capital
  • Refinance Existing Debt

  • Purchase Existing Building
  • Land Aquisition and Ground-Up Construction
  • Expansion of Existing Building
  • Building Improvements
  • Equipment (no rolling stock)

Loan Fees

  • Vary based on loan size, guaranteed portion and qualification
  • See SBA manager for details
  • Fees are negotiated for the 50% Bank Loan
  • See your local CDC for current fee structure

Job Creation

  • None
Manufacturers:
  • One new job must be created or retained for each $100,000 of the CDC portion of the loan
All other Industries:
  • One new job must be created or retained for each $50,000 of the CDC portion of the loan

SBA loans from Bank of North Carolina are in participation with the United States Small Business Administration. Loans are subject to approval in accordance with SBA and Bank eligibility and lending guidelines. Other lending programs are available.

Subject to SBA eligibility, credit review and approval. Depository relationship required. For business purpose loans only. Customer pays out-of-pocket expenses.