Why Small Businesses are Important

Small businesses are the backbone of the American economy. They create two of every three new jobs, produce 39% of the gross national product, and invent more than half the nation’s technological innovation.

There are more than 20 million small companies in the United States today that are providing dramatic opportunities for all Americas.

Do you Qualify?

The following information is designed to help you determine if your loan request generally meets our requirements. For requirements specific to Louisiana click here. For requirements specific to Colorado click here.

  • The request must be for at least $50,000 but not more than $1,500,000.
  • The typical turn-around time for SBA/USDA requests is 4-6 weeks.  The turn-around time for Mezzanine requests is 2-4 weeks.  Equity requests are usually turned in 4 weeks.
  • Pro forma debt service coverage must be at least 1.25 to 1.
  • Loan to discounted collateral coverage does not have to equal the loan amount.
  • Personal guarantees from all principals will be required.
  • Start-ups require at least 25% equity.
  • Expansion/Acquisition requests require at least 10% equity.

Acceptable Loan Purposes

  • Working Capital
  • Machinery and Equipment
  • Inventory
  • Furniture and Fixtures
  • Leasehold Improvements
  • Business Expansion
  • Construction or Purchase of a Building
  • Debt Refinance
  • Buy Existing Business

Eligibility

  • The business must be independently owned and operated
  • The business must be operated for "profit"
  • The business cannot be dominant within its field
  • The business must meet SBA size standards
  • It must be an acceptable type of business
  • The use of proceeds must be acceptable to SBA

Some Of The Most Common Ineligible Requests

  • Non-Profit organizations
  • Financial Institutions
  • Real Estate Investments (non-owner occupied)
  • Limited Membership Clubs
  • Over 1/3 of Revenues from Legal Gambling
  • Borrower/Guarantor on Probation or Parole
  • Religious Teaching
  • Prurient Sexual Nature

Maximum Loan Terms

  • Real Estate - Up to 25 years
  • Machinery and Equipment - Up to 15 Years
  • Working Capital - Up to 10 Years

In some instances the term of the loan may be determined by blending the maturities based on the use of funds.

Standard Sizes (Based on SIC Codes)

  • Retail and Service - Revenue of $5 to $21 Million
  • Construction - Revenue of $7.5 to $17 Million
  • Wholesale* - No more than 100 Employees
  • Manufacturer* - No more than 1500 Employees

* Applicant and All Affiliates.