SBA Loan Program

World Capital Finance strives to make the process of obtaining a loan as simple as possible for our clients; it is this simplicity and dedication that sets us apart from other lenders. World Capital Finance offers loans through the popular SBA 7(a) Loan Program and the SBA CDC/504 Loan Program.

SBA 7(a) Loan Program

  • Flexible term lending for small business owners
  • Procuring financing for business ventures is often challenging for small business owners. From startup phase to the expansion of your business, you may find it difficult to overcome the requirements of traditional bank loans. World Capital and the SBA 7(a) Program may be able to help.
  • Loans available through the U.S. Small Business Administration’s 7(a) program offer flexibility to business owners because financing can be guaranteed for a variety of general business uses including: working capital, debt refinancing, and equipment purchases, just to name a few.

SBA-Chart – Begin your easy 48-hour pre-qualification process now!

Have questions? Ready to get started? Call now and a loan specialist will answer your questions and help you identify which product is best suited for your business’ needs.

Eligibility

  • Business must be operated for profit
  • Business must be open to all on a nondiscriminatory basis
  • Business must be located in the United States or its possessions
  • Owner(s) must be U.S. citizen(s) or have legal permission to live in the U.S.
  • Business owner must be able to demonstrate repayment ability from earnings
  • Business must not be involved in investment real estate, religion, politics, or sex
  • Loan Terms
  • Loans range in size from $50,000 to $10 million
  • Loan terms range from 7 years to 25 years, based on the use of proceeds
  • Owner-occupied real estate: 25 years
  • Machinery and equipment – 10-15 years
  • Business acquisitions – 10 years
  • Working capital – 7 years
  • Loans are structured without balloon payments
  • Interest rates are floating, up to 2.75 percent over prime
  • Personal guarantees are required from any owners of 20 percent or more of the business
  • Collateral includes all business assets and my also include personal assets

Use of Proceeds

  • Expand or acquire a business or franchise. Acquire 100 percent of an existing business, or pay fees to start a franchise
  • Finance business expenses (working capital). Pay salaries and vendors, purchase inventory, advertise, finance receivables, pay bookkeeping and legal fees, or rent office space
  • Purchase office or other work equipment. Purchase computers, furniture, fixtures, manufacturing equipment, and heavy machinery
  • Purchase or improve owner-occupied real estate. Purchase or construct buildings, make leasehold improvements, expand or renovate facilities, or purchase land. If purchasing, owner must occupy at least 51% of the real estate; if constructing, owner must occupy at least 67%.
  • Refinance existing business debt. Improve cash flow by reducing monthly loan payments by at least 20%.
  • SBA CDC/504 Loan Program
  • Provides financing for major fixed assets such as equipment or real estate
  • Purchase or renovation and expansion of owner-occupied real estate
  • Purchase of machinery and equipment

The SBA’s CDC/504 program is about helping a small business purchase the assets needed to take it to the next level. Loans cannot be used for working capital or purchasing inventory (allowed uses under the 7(a) program). The CDC/504 Loan Program is a long-term financing tool that provides growing businesses with fixed-rate financing to acquire assets such as land, buildings, and sizeable purchases of equipment.

Size Standards

  • Net worth must not exceed $7.5 million
  • Average net income over the last 2 years must not exceed $2.5 million

Eligibility

  • Business must be operated for profit
  • Business must be open to all on a nondiscriminatory basis
  • Business must be located in the United States or its possessions
  • Owners must be U.S. citizens or have legal permission to live in the U.S.
  • Business owner must be able to demonstrate repayment ability from earnings
  • Business must not be involved in investment real estate, religion, politics, or sex
  • A representative from World Capital will work with you to determine eligibility

Loan Terms

  • Loans are structured with no balloon payments
  • Up to 50% first mortgage
  • Up to 40% second mortgage provided by Certified Development Company ($250,000 to $4 million)
  • At least 10% equity contribution
  • Interest rates are fixed based on current market rates
  • Loan term is based on use of proceeds
  • First mortgage: Equipment – 10 years; Real Estate – 20-25 years
  • Second mortgage: Equipment – 10 years; Real Estate – 20 years
  • Personal guarantees are required from any owners of 20% or more of the business
  • Collateral includes the real estate or machinery and equipment being financed