Like many small business owners, you may have struggled to secure financing for your business needs, leaving you without the necessary capital to sustain or grow your business. If your requests for conventional financing have been declined by a lender, a government-guaranteed loan may be the solution.
With more than 150 years of in-house, government-guaranteed and commercial lending experience, our expert team will assist with selecting the right loan program to meet your needs.
As an established SBA and USDA Lender Service Provider, IFS has a network of over 50 government-guaranteed lending partners that can finance your loan request.
There are a myriad of government-guaranteed loans and direct loan programs available through the SBA and USDA. However, the three key programs that support most small- to middle-market business lending include the following:
| SBA 7(a) | SBA 504 | USDA B&I | |
|---|---|---|---|
| Eligible Business | For Profit | For Profit | For Profit & Non-Profit |
| Eligibility Criteria | Industry: Sales & Employee Limits by Industry Financial: Net Worth <$15 Million, NIA <$5.0 Million | Industry: Sales & Employee Limits by Industry Financial: Net Worth | Rural Areas with Population Less than 50,0000 |
| Maximum Loan Amount | $5 Million | $5 Million ($5.5 Million for Mfg., Energy & High Impact) | $10 Million ($25 Million for High Impact) |
| Loan Guarantee | 75% / Maximum of $3.75 Million | Non-Guaranteed First Mortgage to 50% of Costs; 40% CDC Second Mortgage | 80% to $5 Million; 70% $5-10 Million; 60% $10-25 Million |
| Interest Rates | Negotiable generally to WSJ Prime + 3.00% | Negotiable First Mortgage;Fixed Below Market CDC Second Mortgage | Fully Negotiable |
| Fees | 2% – 3.75% of Guaranteed Portion | Fees are Approximately 3% of CDC Loan Amount | 3% of Guaranteed Portion |
| Maximum Loan Term | 25 Years | 10 Years – Equipment 25 Years – Real Estate | 30 Years |
To learn more about how we can help you secure the capital you need to grow your business, contact our SBA and government-guaranteed lending consultants at (610) 228-4654.
