SBA Loan Attorney
SMALL BUSINESS LENDING
WSWGS assists small businesses to navigate the rules and requirements for the SBA lending programs. The SBA (U.S. Small Business Administration) Lender and Development Company Loan Programs contain eligibility requirements for lenders that govern the CDC/504 and 7(a) loan programs called the SOP 50 10 5(K).
The SOP is divided into two parts:
Part 1: contains SBA Lender participation and portfolio requirements. Here you will find criteria for becoming an SBA Lender; types of delegated authority; a brief overview of how SBA conducts oversight of SBA Lenders; processes for loan reporting, secondary market transactions, loan transfers, and securitization.
Part 2: is divided into three sections. Section A: Core Requirements for all 7(a) and 504 loans Section B: 7(a) Loan Program requirements Section C: 504 Loan Program requirements.
WSWGS attorney, Edwin Byck, is one of fewer than 30 attorneys in the state of Georgia that is certified to service 504 loans and the only one in the Low Country area. Mr. Byck has been certified since 2005 and renews his certification every 2 years. Edwin Byck represents the lender and the bank lender to assist in loan accordance with SBA procedures.
- SOP 50 10 requirements
- 504 Loan Program
- 7(a) Loan Program
- Review of SOF for loan programs
7(a) Loan Program
Up to $5 million
Business & real estate acquisition
New construction and renovations
Initial working capital, inventory soft cost and closing costs
Buy new equipment
Partner buy-out
Refinance existing business debt
Real estate: up to 25 years
Non-real estate debt: up to 10 years
Term can be blended if the debt includes both real estate and non-real estate debt
Variable and fixed rate options available
The SBA Guarantee fee ranges from 2% to 3.5% of the guaranteed portion of the loan
Other fees include packaging fees, third party reports, lien filings, title charges, etc. (closing fees can be incorporated into the loan)
CDC/504 Loan Program
Up to $5 million on the Bank financed portion.
However, if a building is working towards “Green Certification,” loans can be larger.
Acquisition of an existing building
Building expansion or renovations
Equipment
Fixed assets from business acquisition
Land and new construction
Real estate: 25 years
Equipment: up to 20 years
(assuming capital equipment is new or supported by an appraiser confirming the useful life of the assets)Mixed-use loans can have blended terms, but typically the longest term is used based on the largest use of proceeds as a percentage of the loan.
Variable and fixed rate options available
2%-4% of total financing
Other fees include packaging fees, third party reports, lien filings, title charges, etc. (closing fees can be incorporated into the loan)
