We are a progressive bank, technologically, and structurally. Our SBA team is a flat organization that functions as a true client partner enabling you to communicate directly with decision-makers.
SBA Loans, National Scope
At T Bank, our SBA team includes some of the industry’s leading professionals. With a combined experience in SBA lending in excess of 100 years, our well-seasoned team of experts can help you navigate SBA loan programs and products efficiently and successfully.
SBA (7a) loans: The mainstay of SBA financing programs, 7a loans can be used to finance real estate construction or acquisition, refinance eligible business debt, equipment, working capital, expansion, business acquisition, inventory, etc., and intangible assets. 7a Loans may be used for startups, expansion, and business acquisition. Loan maximum is $5 million.
SBA (504) loans: 504 Loans, used to finance the construction or purchase of commercial real estate and equipment, are comprised of two loans: 1) A Bank senior mortgage of 50% to 60% Loan to Value (LTV), and 2) An SBA guaranteed Debenture in second position originated by a licensed nonprofit Certified Development Corporation (CDC). In general purpose property, the borrower may inject as little as 10% equity and the CDC lends the remainder (up to 40%). One of the benefits of the 504 program is that the Debenture is a 20 year term with the note rate fixed for the life of the loan. Pre-payment penalties apply.
USDA B&I Loans: The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry and employment and improve the economic and environmental climate in rural communities (generally, populations of 50,000 or less). This purpose is achieved by providing a guarantee for a portion of loans made by commercial banks and approved lenders. Loans may be used for owner occupied and tenant occupied real estate and for equipment.
Who We Are & How We Help
T Bank’s professional SBA team is well-versed in processing and funding loans like yours. No matter what type of business you own, if it’s SBA-sized, odds are good we have helped finance it!
We provide loans for any “For-Profit” business, with or without Real Estate.
Loans may be used for the following uses:
- Owner occupied real estate acquisition, refinance, expansion
- Construction experts- ground-up, remodel, leasehold
- Business acquisition
- Franchise financing
- Equipment, machinery
- Debt refinance
- Working capital
Industries In Which We Specialize
- Medical, dental, veterinary
- Private day care school
- Gas station, convenience store
- Car Wash
Our Loan Process will include some or all of the following phases:
- Optional preflight: Our credit professionals are available to talk about a preliminary financing transaction in concept or to strategize to find the best financing solution and structure.
- Prequalify: With some basic business and personal financial information, we will issue a loan proposal/term sheet. If it meets your approval, we gather the remaining financing application materials and a refundable deposit. Appraisals may be ordered at this stage to streamline and accelerate the closing.
- Application/Underwriting: In order to streamline and finalize the approval of your loan as quickly as possible, you should complete the T Bank application package early on. At this stage we will ask you to complete various bank and SBA forms, and to provide any remaining financial documentation. When your application is complete, it will be submitted for final Credit underwriting and decision; we will issue a Loan Commitment Letter upon approval. We usually collect third party report costs (appraisal and environmental reports as necessary) with signed Commitment Letter. However, when the closing timeline is urgent, the customer has an option to order any appraisals at any time prior to final approval.
- SBA Packaging/Issue Closing Needs List: Upon your acceptance of the Commitment Letter, our Closing Manager will prepare the SBA documents and package for the customer signature prior to submitting for SBA review and Authorization. T Bank is a designated SBA Preferred Lender. With this designation, SBA has delegated T Bank the ability to internally approve loans without sending the physical package to SBA. There are certain exceptions to this authority that all lenders must follow. The Closing Manager will also issue a list of items needed for closing (a Needs List), and contact you to coordinate the closing process.
- Closing/Disbursing of Loan Funds: Upon satisfaction of closing conditions the Closing Manager will finalize any applicable title work, insurance certificates, prepare loan documents, and refine any remaining items on the closing checklist. When all documentation is in compliance with the SBA requirements, and reviewed by the Bank’s Funding Auditors, your loan funds will be disbursed.
Frequently Asked Questions
Can an SBA loan be used to refinance debt?
Can SBA loans be used to finance apartment projects or other rental properties?
SBA loans are commercial loans that are used for businesses that are “actively” operated for profit. Apartments and other rental properties are considered to be “Passive Investment” properties and are not eligible for financing under SBA regulations.
An actively operating business may be used to acquire, and/ or improve real estate if the business will occupy the majority of the building. The business must occupy 51% or more of existing real estate, or 60% of the real property if proceeds of the SBA loan will be used to construct new improvements.