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Helping Small Businesses Grow
Small business is the lifeblood of a community. That is why Guaranty Bank is committed to the growth and prosperity of small businesses and are determined to help our clients achieve and build on their success. We proudly hold both the Preferred and Express Lender designations, which allows us to underwrite and approve loans efficiently and help you get down to business.
SBA loans can be used to:
- Purchase machinery and equipment
- Purchase, construct, expand or improve a building
- Acquire inventory
- Provide working capital
- Purchase an existing business or open a new business
- Refinance existing business debt on more favorable terms
Key benefits:
- Guaranteed by federal government
- Longer term and amortization
- Improved cash flow through a lower monthly payment
- Larger loan amount than may otherwise be available
- Lower down payment may be possible
- No balloon payments
Preferred Lender Program:
Guaranty Bank is a proud member of the SBA Preferred Lender Program (PLP), we work closely with the U.S. Small Business Administration to secure financing for companies like yours. These loans have a lower down payment than conventional financing and can be used for a variety of purposes.
SBA Loan Program Comparison
| Details | SBA 7(a) Loan | SBA Express Loan |
| Benefits | No Balloons, Longer Repayment Terms and Lower Payments, Flexible Collateral Requirements, Lower Equity Requirements, Flexible Use of Proceeds. | Same as 7(a), expect Revolving Lines of Credit are renewable annually with a defined minimum term out period. |
| Loan Amount | Loans up to $5,000,000. | Loans up to $500,000. |
| Maximum Term/Amortization | Up to 10 Years for Equipment, Business Acquisitions, Working Capital, Inventory and Leasehold Improvements. Up to 25 Years for Real Estate (purchase or construction). | Same as 7(a), expect Revolving Lines of Credit are renewable annually with max revolving period of 5 years. Same as 7(a) |
| Eligible Use of Proceeds | Working Capital, Inventory, Business Acquisition, Equipment, Real Estate, Debt Refinance, Leasehold Improvements. | Same of 7(a), expect a Revolving Line of Credit is available. |
| Rate Structure | Floating Rate (Quarterly), Subject to Underwriting and SBA Rate Maximums by loan amount. | Same as 7(a) |
| Collateral | 1st Lien on assets to be financed. SBA may require additional business or personal assets.\ | 1st Lien on assets to be financed. SBA may require additional business or personal assets. |
| Guaranty Fee Paid to SBA | Loans of up to $500,000: No Fee. Loans over $500,000 to $700,000: 0.55% of guaranteed portion. Loans over $700,000 to $1,000,000: 1.05% of guaranteed portion. Loans over $1,000,000 to $5,000,000: 3.5% of guaranteed portion up to $1,000,000 plus 3.75% of guaranteed portion over $1,000,000. | Loans up to $500,000: No Fee |
| SBA Packaging Fee | Loans over $50,000 to $125,000: 2% of Loan Amount. Loans over $125,000: $2,500. | Same as 7(a) |
| Prepayment Penalty | Loan Term under 15 Years: No Prepayment Penalty. Loan Term of 15 Years or More: 5/3/1 Prepayment Penalty, applies to prepayments of 25% or more during the first three years. | Same as 7(a) |
*Terms/conditions/requirements/fees are subject to change with SBA policy
Am I eligible for an SBA loan?
There are certain criteria that must be met in order to qualify for an SBA loan. The business must:
- Operate for profit
- Be located in the United States
- Meet credit qualifications
- 51% owned by citizen or legal permanent resident (LPR)
What information do I need to apply for an SBA loan?
Once you've decided to apply for an SBA loan, you will need certain information to apply. A Guaranty Bank SBA specialist will help walk you through this process. Prior to meeting with us, complete and signing the three documents below.
SBA Personal Financial Statement