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
