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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.

 

Learn more about SBA

 

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

 

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