As a preferred lender for the U.S. Small Business Administration (SBA), Heritage Bank is able to offer fast approval and processing on all SBA loan applications.
SBA loans are guaranteed by the U.S. Small Business Administration, a government agency that offers financial programs to small businesses. SBA loans allow businesses to retain more capital to grow their business with loan amounts up to $5M. Heritage Bank is a SBA Preferred Lender.
We offer a digital application process combined with personalized 1-on-1 lending services. To begin, simply submit your inquiry using the form below. Your information is sent directly to our team. Once received, we’ll email you application information and a team member will call you to discuss your equipment financing needs.
1 Get started Online. 2 Apply over the phone. 3 Get a Decision. 4 Access your funds.A variety of business needs and purposes qualify for funding through an SBA loan. Typical financing includes commercial real estate purchases and refinancing, equipment purchases, existing debt refinancing, tenant improvements, business acquisitions, partner buyouts, construction, inventory purchase, working capital and more.
Some benefits of SBA loans are that they may include lower down payments, interest rates, and longer repayment terms compared to non-SBA loans. The interest rate depends on your creditworthiness, but generally SBA loans have rates and fees comparable to non-SBA loans. 1 2
Loan limits are based on the loan amount and program type. For example, the maximum amount for 7(a) loans is $5 million, SBA Express loans is $350,000 and SBA Export Express loans is $500,000.
For a Change of Ownership & Start Up Businesses (or businesses that have been generating revenue for 1 year or less), there is a minimum equity requirement of 10% of total project costs.
Yes, the seller can finance a portion of the business sale either on full standby until the SBA loan is paid in full (this is treated as equity into the project) or it can be with repayment terms that are similar to the SBA loan (this is treated as debt for the business).
The amount of time it takes to process a loan depends on multiple factors, including how quickly the borrower responds to the bank’s requests for information or documents and how many outside parties (contractors, appraisers, etc.) may be involved in your project. Because of these variables it can take between 30-90 days depending on the complexity of the file.
SBA requires that all loans are fully amortizing, as SBA does not allow balloon payments. The following are acceptable loan terms based on the use of loan proceeds:
Rates are determined based on the risk associated with the loan. SBA allows fixed and variable interest rates. The interest rates are tied to the Wall Street Journal Prime Rate. For a standard SBA 7a loan greater than $50,000 with a maturity of 7 years or more, the interest rate cannot exceed Prime + 2.75%* (for both fixed or variable rate). 3
Important Information
Procedures for Opening an Account
Mandated by the USA PATRIOT ACT
To help the government fight the funding of terrorism and money laundering activities, the USA PATRIOT ACT, a Federal law, requires all financial institutions to obtain, and record information that identifies each person who opens an account.
What this means for you:
When you open an account, we will ask you for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
