American Riviera Bank Small Business Administration Loans

Blog June 22, 2017 by Annette Jorgensen

SANTA BARBARA, CALIF. (June 22, 2017) - If it has always been your dream to launch and run your own business, what are you waiting for? Want to buy a commercial building that your business will occupy with as little as 10 percent down?

Obtaining the financing you need for your new business venture is certainly a key part of starting your business and realizing your dream. You may also need funds to buy an existing business that you plan to modernize and make your own. In each case, a United States Small Business Administration (SBA) loan is a great way to get started. Here are some things you should know about SBA loans:

SBA 7(a) Loans¶

SBA’s 7(a) Loan Program is the SBA’s most common loan program. SBA 7(a) loans offer long-term financing to start a business, buy a business or expand a business. Loan terms are normally 7-10 years fully amortized. The SBA does not make loans itself, but guarantees loans made by participating lending institutions such as American Riviera Bank.

You can use an SBA loan for business acquisition, to buy an ongoing business or just the assets of a business. 

SBA loans also can be used for a stock buy-out. With baby boomers retiring and business succession a big issue, the opportunity to purchase the stock of a departing principal or shareholder is always out there as well. 

And, an SBA loan can be helpful if a business is expanding to multiple locations and may still need to rely on projections.

To obtain an SBA 7(a) loan, start by finding an SBA lender in your area. Be prepared in advance. If you are starting a new business, you will need a Business Plan and Projections, a resume, Personal Financial Statement and personal tax returns for three years. If you have an existing business and are seeking to expand or buy a business, you will need that business’ tax returns for three years plus an interim Income Statement and Balance Sheet.

SBA 504 Loans¶

The SBA 504 program is an economic development program that promotes growth and job creation in small business by providing long-term, fixed-rate financing for the acquisition of existing land and buildings, building construction and/or renovation, and the purchase of machinery and equipment. The SBA 504 program provides growing businesses with long-term, fixed-rate financing for major fixed assets and can be helpful to purchase owner/user commercial real estate with as little as 10 percent down.

Annette Jorgensen has over 27 years of SBA lending experience. She specializes in SBA loans to help people fulfill their dreams of starting, buying or owning a business, as well as financing owner/user commercial real estate with only 10 percent down. Jorgensen graduated from the University of California, Santa Barbara with a degree in business economics. Contact Annette Jorgensen at [email protected].