For businesses that may not otherwise qualify for conventional bank financing, a U.S. government guaranteed loan may be the answer. The U.S. Small Business Administration (SBA) offers a program of loans that provide flexible terms, higher loan-to-value ratios, and lower down payments.
Mechanics Bank is an SBA Preferred Lender
SBA guaranteed loans are available to all types of borrowers, to include sole proprietors, partnerships, and corporations. They provide lines of credits, term loans, and real-estate loans for all loan purposes, such as business acquisitions, working capital, capital expenditures, and real estate purchase and improvement.
This means that we have the designated authority to make loan decisions on behalf of the SBA, thereby reducing the time for processing, approval and funding.
An SBA loan may be your solution if you are looking for:
- A speedy credit approval
- Longer maturities than most banks offer
- Lower down payment
- Lower monthly payment
- No balloon payment
- Multiple interest rate options (adjustable or fixed)
Mechanics Bank participates in the SBA Express Loan, 7(a) Term Loan and 504 Term Loan Programs.
SBA Express Loan
Basic 7(a) Term Loan
- For working capital, equipment purchases, and other business purposes
- Loans from $10,000 to $250,000
- Revolving credit line, with interest only and 2 year maturity or four year term
- Competitive pricing
- No out of debt period required
- Fee generally 3% of U.S. Government guaranteed amount
- No prepayment penalty
504 Term Loan
- For working capital; business or equipment acquisition; real estate purchase, construction or improvements; expansion financing or debt refinancing
- Loans from $50,000 to $2,000,000.Finance up to 90% of real estate appraised value for up to 25 years
- Finance up to 80% of business acquisition for up to 10 years
- 7-25 years fully amortized
There are other advantages to banking with Mechanics Bank, to include:
- For the purchase or construction of owner occupied commercial real estate
- Maximum SBA loan $2,000,000 (up to $4,000,000 for small manufacturers)
- Loans from $50,000 to $2,000,000
- 90% financing available
- SBA Preferred Lender status means expedited processing
- Immediate attention to your needs
- Customized and flexible credit structures
- Local credit approval
- Competitive pricing options
- Skilled, experienced and knowledgeable Relationship Managers
- A genuine commitment to quality service
For more information on SBA Financing, please call 800-272-1154.