Who is Eligible for an SBA Loan?

Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses.

How we help you

We, at Nationwide, do the financial packaging and the credit processing to qualify the prospective small business loan applicant. Upon determination of eligibility, we submit the package to one of our SBA Bank Lending Partners with a recommendation for approval. Our service extends into working with our clients up to the actual loan funding.

We provide personalized service to minimize the apprehension of having to deal with institutional lenders.

You gain from our vast experience and established relationships with Nationwide’s group of preferred SBA Lender Banks. Your loan has a better opportunity to be approved by one of our half dozen SBA Preferred Lender Banks.

It you cost no more to take full advantage of our services to get your SBA Financing. The Government regulates SBA Loan fees. Interest rates on these loans average between Prime + 2 and Prime + 2¾%, depending on the size of the loan and the quality of the credit.

We are totally committed to helping you secure your financing once we establish your eligibility.

SBA Loan Qualifications

• Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry
• Wholesale businesses with employees up to 100 regardless of sales volume
• Manufacturers with employees up to 500 depending on the industry, regardless of sales volume

SBA 7(A) Loan Size $25,000 to $2.0 million

Loan Fees

• Loan packaging fee: $750 to $2,000
• Fee is based on loan size, it is collected at the time of loan submission; refunded if declined by credit
• SBA guaranty fee: 1.70% to 2.60% of the loan amount
• Fee can be financed in the loan

Use of Proceeds

• Commercial real estate (purchases, construction, or refinance)
• Leasehold improvements
• Business expansions
• Machinery, equipment, furniture or fixtures
• Business acquisition
• Working capital (offered in conjunction with some of the above)
• Start-ups (ALL Franchises, Motels, Restaurants Gas Stations and C-Stores)

How long do I have to repay a SBA loan?

The repayment term is generally between five and twenty-five years depending on the life of the assets being financed and the cash needs of the business. Working capital loans (inventory and accounts receivable) should be repaid in five to ten years. The SBA also has short-term loan guarantee programs. Ask your lender or call your local SBA office.

Other Credits Considerations

• Business must have adequate historic cash flow to cover the proposed debt
• Business debt to net worth must meet industry averages
• Borrowers must be actively involved in the day-to-day operation of the business
• Satisfactory personal credit histories are required for all principles and guarantors
• No past bankruptcies or felony arrests