U.S. Small Business Administration (SBA) Lending

Small business is the lifeblood of a community. That is why Quad City Bank & Trust is committed to the growth and prosperity of small businesses and are determined to help our clients achieve and build on their success. We proudly hold both the Preferred and Express Lender designations, which allows us to underwrite and approve loans efficiently and help you get down to business.

 

SBA loans can be used to:

  • Purchase machinery and equipment
  • Purchase, construct, expand or improve a building
  • Acquire inventory
  • Provide working capital
  • Purchase an existing business or open a new business
  • Refinance existing business debt on more favorable terms

 

Key benefits:

  • Longer term and amortization
  • Improved cash flow through a lower monthly payment
  • Larger loan amount than may otherwise be available
  • Lower down payment may be possible
  • No balloon payments

 

 

 


 

SBA Loan Program Comparison

 

  Standard 7(a) Loan

  SBA Express Loan

Loan Amount

  • Loans up to $5,000,000
  • Loans up to $350,000

Maximum Term/Amortization

  • 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory and Leaseholds
  • 25 Years for Real Estate
  • 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory and Leaseholds
  • 25 Years for Real Estate
  • 7 Years for a Revolving Line of Credit with Annual Review

Eligible Use of Proceeds

  • Working Capital
  • Inventory
  • Business Purchase
  • Equipment Financing
  • Real Estate Financing
  • Debt Refinancing
  • Leasehold Improvements
  • Working Capital
  • Inventory
  • Business Purchase
  • Equipment Financing
  • Real Estate Financing
  • Debt Refinancing
  • Leasehold Improvements
  • Revolving Line of Credit

Rate Structure

  • Floating rate (Quarterly): Maximum of 2.75% over the WSJ Prime
  • Floating rate (Quarterly): Maximum of 2.75% over the WSJ Prime

Collateral

  • 1st Lien on assets to be financed required. SBA may require additional collateral on other business or personal assets
  • 1st Lien on assets to be financed required. SBA may require additional collateral on other business assets or personal assets.

Guaranty Fee Paid to SBA

  • Loans up to $150,000 there is no Guaranty Fee
  • Loans from $150,001 to $700,000: 3% of Guaranteed Amount
  • Loans from $700,001 to $5,000,000: 3.5% of Guaranteed Amount Plus an additional .25% on the Guaranteed Amount over $1,000,000
  • Loans up to $150,000 there is no Guaranty Fee
  • Loans from $150,001 to $700,000: 3% of Guaranteed Amount
  • Loans from $700,001 to $5,000,000: 3.5% of Guaranteed Amount Plus an additional .25% on the Guaranteed Amount over $1,000,000

Application

  • Standard 7(a) loan application (long form)
  • SBA Express Application (Short Form with expedited processing)

 


 

FAQs

Am I eligible for an SBA loan?

There are certain criteria that must be met in order to qualify for an SBA loan. The business must:

  • Operate for profit
  • Be located in the United States
  • Meet credit qualifications
  • 51% owned by citizen or legal permanent resident (LPR)

What information do I need to apply for an SBA loan?

Once you've decided to apply for an SBA loan, you will need certain information to apply. A Quad City Bank & Trust SBA specialist will help walk you through this process. Prior to meeting with us, use this checklist to gather the necessary information:

  • Personal financial statement
  • Resumes
  • Business plan
  • Income tax returns (personal and business)
  • Business financial statements (less than 60 days old)
  • Bank statements
  • Collateral
  • Legal documents

What will my banker ask me?

The following information is what you need to know before coming in to see a Quad City Bank & Trust lender.

  • Why are you applying for this loan?
  • How will the loan proceeds be used?
  • What assets need to be purchased, and who are your suppliers?
  • What other business debt do you have, and who are your creditors?
  • Who are the members of your management team?