SBA Loan Programs
Capital Bank's lenders are experienced and knowledgeable, and look forward to work with you to help your business grow. Contact us at (301) 468-8848; we welcome the opportunity to provide your business with access to these or other SBA loan programs. Here is a brief description of two SBA programs Capital Bank lenders can provide.
SBA Express Loan Program
- Maximum Loan Amount - $350,000
- Maximum SBA Guaranty - 50%
- Interest Rate - Lenders and borrowers can negotiate the interest rate. Rates are tied to the prime rate (as published in the Wall Street Journal) and may be fixed or variable, but they may not exceed SBA maximums: Lenders may charge up to 6.5 percent over prime rate for loans of $50,000 or less and up to 4.5 percent over the prime rate for loans over $50,000.
- Revolving Lines of Credit - SBA Express allows revolving loans up to 7 years with maturity extensions permitted at the outset
- Collateral - The SBA does not require the Bank to take collateral for loans up to $25,000, this is a Bank decision. The Bank uses its own collateral policy for loans over $25,000 up to $150,000. For Loans greater than $150,000, the Bank must follow the SBA's general collateral policy.
SBA 504 Loan Program
The SBA 504 program is designed to get long-term fixed rate financing into the hands of small business owners. Generally any small for-profit business is eligible for an SBA 504 loan. It is essentially a second mortgage-type product for commercial real estate; the Bank is in first mortgage position. The Bank works with a certified development company (CDC) which is an organization that facilitates the 504 program. Essentially these are non-profit, local community-based organizations whose goal is local economic development. The CDC will work with the small business owner and also with the Bank to put the loan package together. The loan proceeds for a 504 loan are limited to land, buildings, equipment and heavy assets to finance owner-occupied real estate. A 504 loan cannot be used for working capital or inventory purchases. The Bank can provide other financing options for these needs.
