SBA Lending Experts

We have more SBA programs than any other lender in the market. We work with an array of business lenders to bring you the best programs and solutions for your business lending needs.

800-608-8191

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Highlights

The 7(A) Loan Program is designed to help start-up and existing small businesses obtain more flexible terms than conventional bank loans and alternative sources of financing.  SBA guarantees a certain percentage of the loan, reducing the risk to the bank.  Despite the SBA guarantee, the bank seeks to make strong loans with a high certainty of repayment by the borrower.

Bear Funding assembles 7(A) loan packages and present the loan application to our lenders interested in funding the project.  Because of Bear Funding’s close work with many financial institutions, we are familiar with the funding inclination of the different banks in terms of start-ups, smaller loans and industries.  As a result, Bear Funding can efficiently identify the lender most likely to fund a particular loan, which saves the borrower significant time.

Eligibility

For existing businesses:

  • The project or business must show an ability to cash flow existing and requested debt at a debt service coverage ratio of 1.25
  • A minimum 640 personal credit score for each principal borrower

For start-up businesses (less than 2 years):

  • 2 years minimum management experience in related industry
  • 30% capital required (only 10% cash requirement)
  • Will lend on business plan and pro forma projections

Terms and Conditions

  • Maximum loan amount – $2,000,000
  • Terms – 7 to 10 years
  • Interest rate – prime + 2.25% to 2.75% (variable)
  • Multi-purpose loan
  • Minimal down payment – low as 10% down
  • Adjustable Rate based on Prime Rate
  • Fixed rate for 3, 5, 10 years available
  • Fully amortized – up to 25 Years
  • Very flexible

Types of Financing

  • Purchase CRE – Owner/Occupied
  • Construction and Tenant Improvements
  • Business Acquisition (BizAck)
  • Partner Buyout
  • Business Expansion
  • Working Capital
  • Equipment
  • Business Start-Up

SBA loans can be used to meet a variety of financing needs.  SBA funds can be used to finance the purchase of commercial real estate so long as it is at least 51% owned by the borrower’s business.  Under this same owner occupancy requirement, SBA can finance the ground up construction of a new commercial building.  Tenant improvements – loans to improve a commercial property already owned and occupied by a borrower’s business as well as leasehold improvement – a loan to improve a commercial property that is leased by the borrower’s business are also available

Borrower’s with direct industry experience can use SBA financing for the acquisition of an existing profitable business, commonly known as a Biz-Ack loan.  Often times a business will be owned by several individuals and in the case where one or more of the partners want to leave the business, the remaining owners can use SBA financing to buy out the departing partners.  One of the biggest advantages of SBA loans is the ability to use projections on expected future income to make loans to expand a business or provide working capital and equipment.  For individuals experienced in a particular industry and credit worthy, a borrower can even obtain an SBA loan to start up a brand new business.