Exit Ticket 1/17/23

To be eligible for an SBA business loan, a small

business applicant must?

Which of the following is not a profile questions that The SBA ask its prospective customers?

• How Many Co-Signers do you have included in your Business.

• How long have you been in business?

• What was your prior full year revenue?

• How much of a loan are you looking for?

What are The Five C's of Credit?

What are the two Major SBA Loans?

Which of the Following is a eligibility requirement for obtaining a SBA loan?

• Be a Non- Operating Business

• Organized for non-profit

• Located outside the United States

• Demonstrate a need for the desired credit

Who created the SBA and what year did they create it?

What is the SBA Primary Lending program? What is the maximum loan amount?

What are the minimum requirements to fill out an SBA bank loan application?

What are the interest rates SBA 504 Loan Program

• Below market fixed rate:

  2nd SBA/CDC is usually based on 10 year Treasury + margin (~2.5 – 3.0%)

  1st Lender is comparable in their rate, but usually slightly above SBA/CDC’s rate – can be based on any COF index

• •Can be negotiated between lender and borrower

  Primarily based on WSJ Prime + Spread

  Other base rates include LIBOR 1-month + 3%, or SBA Peg Rate

  SBA Guidelines based on loan maturity & amount

  < 7 years: Max. Rate = Prime + 2.25%

  >= 7 years: Max. Rate = Prime + 2.75%

  Rates slightly higher for loans of $50k or less

Which of the following is not a component of how the SBA 7(a) Guaranty Loan Program matures?

• Up to 10 years for working capital

• 7 to 10 years for machinery & equipment

• Up to 10 years for working capital

• 10 years for real estate – maximum maturity