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

Eligibility

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

Loan Size

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

Financing

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

Use of Proceeds

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

Collateral

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

Loan Terms

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

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 Express Loans

Eligibility

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

Loan Size

  • Maximum SBA guaranteed portion is $350,000

Financing

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

Use of Proceeds

  • Working Capital, Lines of Credit

Collateral

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

Loan Terms

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

SBA Guaranty Fee

  • 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
  • During the second year 2.75% will be charged on loans over $150,000

 

 

SBA 504 Loans

Eligibility

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

Loan Size

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

Financing

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

Use of Proceeds

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

Collateral

  • 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

  • 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

  • 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