SBA Loans
Access the capital you need to help your business succeed.
Ocean Bank participates with the U.S. Small Business Administration (SBA) to offer small business owners the opportunity to secure funding to take your business to the next level.
Loan Amount:
- From $125,000 to $5.5 million
Loan Purpose:
- Buy land or commercial property
- Make improvements to commercial property
- Purchase heavy equipment and machinery
Terms:
- 10-, 20- and 25-year maturity options available depending on use of funds
- Interest rate locks in when loan is funded
- Fully amortized loan with no balloon payment
Down Payment:
- As low as 10% of the amount of the loan
Eligibility:
- At least 51% of the commercial property must be owner occupied if it's an existing building or 61% if it's new construction
The business must operate as a for-profit company in the U.S. or its territories. SBA-eligibility is for small business with 500 or fewer employees and annual revenues under $7.5 million. Loans cannot be used for working capital, inventory, debt consolidation or refinance, or to purchase real estate investment property. The information above is intended to serve as a general guideline and is subject to change. Additional restrictions may apply.
Loan Amount:
- Up to $5 million
Loan Purpose:
- Working capital
- Purchase equipment, furniture, fixtures, supplies or materials
- Purchase commercial property or land
- Make improvements to commercial property or construct a new building
- Start a new business, acquire a business or diversify current operations
Terms:
- 10-, 20- and 25-year maturity options available depending on use of funds
Down Payment:
- As low as 10% of the amount of the loan
Eligibility:
- Your business has used alternative funding sources such as personal savings and demonstrates a need for funding
- Your business does not meet standard eligibility requirements for other conventional loan programs
The business must operate as a for-profit company in the U.S. or its territories. SBA-eligibility is for small business with 500 or fewer employees and annual revenues under $7.5 million. Loans may be used to refinance debt if certain conditions are met. The information above is intended to serve as a general guideline and is subject to change. Additional restrictions may apply.
Frequently asked questions about SBA loan programs
An SBA loan is a small business loan offered by a bank that is partially backed by the Small Business Administration, a U.S. government agency. SBA loans offer flexible terms and competitive rates to finance business start-up costs, expansion, purchase of real estate and more.
Businesses apply for an SBA loan with their bank. The bank reviews the application package to make sure it meets SBA loan requirements, and if the bank approves the application, it applies to the SBA for a loan guarantee. This means that if the borrower defaults on the loan, the SBA will pay the bank a guaranteed amount, thereby reducing the bank’s risk of lending to a borrower that might not qualify for traditional lending.
Since SBA loans are guaranteed by the U.S. government, Ocean Bank can extend credit to your business if you don’t qualify for a conventional loan. Compared to other types of loans, SBA loans provide benefits like lower down payments so your business can preserve cash. Lower interest rates and repayment terms up to 25 years can also strengthen your cash position. And if your business has the cash, you may be able to repay the loan early with no prepayment penalty.
Loans are risky because there is always the potential for the borrower to default on loan payments. This risk is considered when banks calculate the terms of conventional loans. SBA loans are guaranteed. That means that if a borrower does not repay an SBA loan, the bank can ask the SBA to repay it. However, if a business defaults on the loan, it has a significant impact on the risk rating of the business, opportunities to qualify for credit in the future and may impact the ability to lease space and get approved for a credit card.
Generally, for-profit businesses that operate in the U.S. or its territories are eligible. There are other eligibility requirements based on which SBA loan you want to apply for. An Ocean Bank SBA loan expert can help you make the right choice.
Yes, in some cases. A business owned or managed by a legal permanent resident (LPR), also known as a green card holder, is usually eligible for SBA financing. Other citizen-status situations may also be eligible to apply. Talk with one of our SBA loan experts for more information.
Like any other loan, there are requirements your business needs to meet before an SBA loan will be approved. For instance, you’re more likely to qualify if you have a good credit score and a long history of making payments on time and keeping balances low on credit cards and other types of revolving debt. For certain loan types, collateral like real estate, equipment or machinery is also required to get an SBA loan. Every situation is different, so even if your past isn’t perfect, Ocean will work with you as much as possible to help you qualify according to SBA guidelines.
Yes, 7A loans can be used to buy an existing business. You’ll need to provide detailed information about the business you are purchasing.
Ocean Bank will fund your loan to your business account. You’ll make monthly loan payments of principal and interest to Ocean Bank according to the terms of the loan.
Certain limitations apply. Subject to credit approval.