Prepare to Help Businesses Recover

By: cuBIZloan expects the US Government to aggressively use the Small Business Administration to funnel capital to businesses and facilitate recovery during this economic slowdown.

Our programs position credit unions to be in the forefront to help business owners find an avenue to capital.

Every credit union, regardless of their business lending expertise, should reach out to their business community and direct them to an SBA Disaster Recovery Loan. cuBIZloan’s Referral Credit Union program can facilitate loans through the SBA and USDA, without risk of loss to the referring credit union.

Let’s help local businesses, and in turn, your credit union.

SBA 7(a) Standard Loan – Up to $5 million for:

  • Purchasing business equipment
  • Hiring and training new employees
  • Opening a new location
  • Expanding or renovating your current location
  • Updating computer hardware or software
  • Refinancing existing business debt
  • Purchasing commercial real estate

SBA 504 Loan – Must be used for fixed assets (and certain soft costs), including:

  • Purchasing existing buildings.
  • Purchasing land and land improvements.
  • Construction of new facilities or renovating existing facilities.
  • Purchasing long-term machinery.
  • Refinancing of debt in connection with an expansion of the business through new or renovated facilities or equipment.

504 Loans are typically structured with SBA providing 40% of the total project costs, a participating lender covering up to 50% of the total project costs, and the borrower contributing 10% of the project costs. Under certain circumstances, a borrower may be required to contribute up to 20% of the total project costs.

SBA 7(a) Community Advantage Loan – Up to $250,000 for:

  • Existing as well as startup businesses are eligible.
  • Must be a business with limited financial resources or located in an undeserved community.
  • Purchasing inventory, equipment, working capital, etc.
  • Rates start at prime plus 3%.
  • Terms of up to 25 years.
  • No prepayment penalty.

SBA Micro Loan – Up to $50,000 for:

  • Existing as well as startup businesses are eligible.
  • Purchasing inventory, equipment, working capital, etc.
  • Interest rate starts at 6% fixed at closing for the life of the loan.
  • Terms of up to 6 years.
  • No prepayment penalty.
  • $30 application fee.

For more information, please contact:

Murray Halperin, Managing Member

(609) 270-0200