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SBA Lending

Being a preferred lender represents our dedication to serving the small business community. This expertise gives us the tools to better solve all our member's needs.

SBA Guidelines

SBA 7(a) Program

SBA Express Loans

SBA 504 Loans

Eligibility

For-profit business Must qualify as a small business according to SBA guidelines. Size varies by industry type

For-profit business Must qualify as a small business according to SBA guidelines. Size varies by industry type

For-profit business. Tangible net worth less than $15 million Net profit after tax less than $5 million


Loan Size


Maximum SBA guaranteed portion is $3.5 million Maximum SBA loan is $5 million


Maximum SBA loan amount is $350,000


Maximum SBA loan amount is $5 million for projects meeting a public policy goal and $5.5 million for manufacturing companies


Financing


Provided by Altra SBA provides 85% guaranty to Altra on loan amounts up to $150,000


Provided by Altra SBA provides a 50% guaranty to Altra Federal Credit Union


50% financed by Altra 40% financed by SBA through a Certified Development Company


Use of Proceeds


Land, Buildings, Equipment, Furniture & Fixtures, Inventory, Business Acquisition, Working Capital


Working capital lines of credit


 Land, Buildings (purchase, new construction, or renovation), Machinery & Equipment (minimum useful life of 10 years)


Collateral


SBA requires that Altra take a first secured interest in business assets and/or a mortgage on real estate


SBA requires that Altra take a first secured interest in business assets and/or a mortgage on real estate


Altra holds the 1st mortgage on real estate or the 1st secured interest in machinery & equipment SBA holds the 2nd mortgage on the real estate or the 2nd secured interest in machinery & equipment


Loan Terms


Working Capital - up to 7 years
Equipment - up to 10 years (of useful life)Real Estate - up to 25 years


Revolving lines of credit available up to 7 years. Initial term is 1 year with renewal options.


Altra loan - minimum 10 years on real estate, 7 years on machinery & equipment
SBA loan - 20 years on real estate, 10 years on machinery & equipment


SBA Guaranty Fee


SBA charges a 2% fee on the guaranteed portion of loans $150,000 or less
SBA charges a 3% fee on the guaranteed portion of loans over $150,000 up to $700,000
SBA charges a 3.5% fee on loans over $700,000


SBA charges .25% of the guaranteed portion the first year on the line of credit. During the second year 1.75% will be charged on loans of $150,000 or less and 2.75% on loans over $150,000


Altra charges a normal fee on the bank loan.CDC and SBA fees are approximately 3% and are financed over the life of the loan