Utilize Government Guaranteed Loan Programs to Fund the Growth of Your Business
Like many other business owners you may have struggled to find the financing required to grow your business. Without funding, your company may run out of fuel before you reach your destination. But imagine if you had resources to hire new talent, open a new office, invest in the latest technology, or whatever you need to propel your business to new heights.
When do Government Guaranteed Loans Make Sense?
If your conventional financing request has been declined one or more times by a lender, a government guaranteed loan may be the solution.
3 Flagship Government Loan Programs
There are a myriad of government guaranteed loans and direct loan programs available through the SBA and USDA. However, the three key programs that support most small- to middle-market business lending include the following: SBA 7(a) loan guaranty program; SBA 504 program; USDA Business & Industry (B&I) loan guaranty program.
| SBA 7(a) | SBA 504 | USDA B&I | |
| Eligible Business | For Profit | For Profit | For Profit & Non-Profit |
| Eligibility Criteria |
Industry: Sales & Employee Limits by Industry Financial: Net Worth < $15 Million, NIAT < $5.0 Million |
Industry: Sales & Employee Limits by Industry Financial: Net Worth < $15 Million, NIAT < $5.0 Million |
Rural Areas with Population Less than 50,000 |
| Maximum Loan Amount |
$5 Million | $5 Million ($5.5 Million for Mfg., Energy & High Impact) |
$10 Million
($25 Million for High Impact) |
| Loan Guarantee | 75% / Maximum of $3.750 Million |
Non-Guaranteed First Mortgage to 50% of Costs; 40% CDC Second Mortgage |
80% to $5 Million; 70% $5-10 Million; 60% $10-25 Million |
| Interest Rates | Negotiable to WSJ Prime + 2.75% or 1 Mo. LIBOR + 300bps +2.75% |
Negotiable First Mortgage; Fixed Below Market CDC Second Mortgage |
Fully Negotiable |
| Fees | 2%-3.75% of Guaranteed Portion |
Fees are Approximately 3% of CDC Loan Amount |
3% of Guaranteed Portion |
| Maximum Loan Term |
25 Years | 10 Years – Equipment 20 Years – Real Estate |
30 Years |
The Secret to Securing Government Guaranteed Loans
The path to obtaining Government Guaranteed Loans is often littered with stumbling blocks because these loans have specific requirements and guidelines. Your lender must follow these guidelines and requirements to gain government agency approval.
IFS is an expert in Government Guaranteed Loans. We assist small business owners, like you, in building their businesses every day.
- We listen to your needs and understand your goals.
- We become a partner to you and your business.
- We help you explore and discover the proper loan and proper lender that will meet your needs.
- We help you complete your application, gain approval, and close your loan.
Let’s Get Started
Contact IFS for your free consultation to develop a customized commercial financing strategy.