On behalf of local banks and small business clients, SEED Corporation packages SBA 7A Guaranty Program applications. SBA guaranties up to 75% of the amount of a loan up to $5 million. The SBA guaranty enables a lending institution to entertain a loan it might not otherwise due to collateral and/or existing cash flow.
Prior to packaging on SBA 7A Guaranty application, SEED requires that a commitment letter stating that financing will be provided subject to an SBA guaranty.
Eligible Businesses
Most independently owned and operated businesses not dominant in their fields.
Use of Funds
Fixed asset acquisition and working capital. Refinancing can be considered when it benefits the small business.
Term and Rate
Five to seven years for working capital and up to 25 years for real estate. Interest rate is pegged at 2.25 percent over the lowest prime for loans of five to seven years, and 2.75 percent over lowest prime for loans over seven years.
Loans of $150,000 or less
Fees: 2% of guaranteed portion, lender is authorized to retain 25% of the fee
Notes: Maturities that exceed 12 months
Loans of $150,001 to $700,000
Fees: 3.5% of guaranteed portion
Notes: Maturities that exceed 12 months
Loans of $700,001 to $2,000,000
Fees: 3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000
Notes: Maturities that exceed 12 months
Short Term Loans – up to $2 million
Fees: .25% of guaranteed portion
Notes: Maturities of 12 months or less
For more information, please contact SEED Corp.
SEED is an equal opportunity lender and business assistance provider.
