Small Business Administration Loan 7(a) Features
SBA provides a guarantee of up to 85% of credit union loan amount for member business access to credit that would not be available under traditional credit underwriting guidelines
Provides long term financing for equipment purchases, owner occupied real estate acquisition/improvement, permanent working capital, or business acquisition
Maximum maturities of 7 years for working capital, 10 years for machinery/equipment, 25 years for real estate
Variable interest rate program tied to Prime lending rate
Member Eligibility Requirements
Must be able to demonstrate adequate cash flow for repayment, be willing to pledge business and owner personal assets, and have acceptable credit profile
Must have business deposit account at Global Credit Union
Must meet SBA eligibility requirements
Fees and Charges
Generally, no origination fees. However a packaging fee may be charged. A guarantee fee of 1% to 3% of the guarantee amount is charged by the SBA. Member is responsible for costs associated with closing the loan.
