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Altra’s Routing #: 291881216
Lending

SBA Lending

Coronavirus Emergency Loans

Coronavirus Aid, Relief, and Economic Securities (CARES) Act

The CARES Act allocated $350 billion to help small businesses keep workers employed during the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.  As an added bonus, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. 

Please understand the final federal guidelines on how to process these loans are not available yet, but are expected later this week. Because Altra is an SBA Preferred Lender, your local Altra Business Banker will be ready to assist you as soon as the guidelines are released.

 

SBA Economic Injury Disaster Loan (EIDLs)

The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). 

These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. 

The terms offered can be very favorable with loans up to $2 million, up to $25,000 unsecured, 2.75% rates for nonprofit organizations, 3.75% for other small business, and amortization potential up to 30 years. Click below to apply directly with the SBA.  Altra is NOT involved with this process. 

SBA Guidelines

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 7(a) Program

Eligibility

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

Financing

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

Collateral

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

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

Loan Size

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

Use of Proceeds

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

Loan Terms

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

SBA Express Loans

Eligibility

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

Financing

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

Collateral

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

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

Loan Size

  • Maximum SBA guaranteed portion is $350,000

Use of Proceeds

  • Working Capital, Lines of Credit

Loan Terms

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

SBA 504 Loans

Eligibility

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

Financing

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

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

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

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

Use of Proceeds

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

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