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As a Participating Small Business Administration (SBA) Lender, we can offer quick processing of your SBA request. The advantages of using the SBA loan programs include:

Lower loan payments due to longer terms
Improved cash flow.
Lower collateral requirements.
With the SBA guaranty, the bank is able to provide financing to businesses that do not meet criteria for conventional bank financing.

Can you use an SBA loan?

If you have a growing business, SBA financing can help you to:

Purchase or renovate real estate. Purchase or upgrade real estate to operate your business, construct a business facility or make improvements to an owner-occupied property.
Purchase fixed assets. Includes assets such as heavy machinery or specialized equipment.
Borrow working capital. Manage day-to-day cash flow and purchases.

Features and benefits

SBA loans often offer important advantages over traditional business loans:

Longer repayment terms.SBA repayment periods are longer than those of conventional bank loans. This makes your monthly loan payment more affordable, helping to improve your cash flow. Extended terms are available for loans depending on purpose of the loan whether it is for:

Working capital
Equipment
Commercial real estate

Projected income consideration. For SBA loan qualification, projected income of a business (not just historical cash flows) is considered. This may be particularly advantageous if your business is growing.
No balloon payment. SBA loans are fully amortized, with no balloon payments at the end of the loan. This eliminates the need to apply for a new loan and incur new fees at the end of the loan term.
Fixed or variable rates.

Qualifying for an SBA loan

To qualify for an SBA loan, your business must be:

Owner operated
For profit
Organized as a sole-proprietorship, corporation, LLC, or general partnership
Conform to SBA guidelines for small business size
Unable to secure conventional credit under reasonable terms

SBA Loan Options

SBA 504 Loan Program

The 504 program is facilitated in Partnership with a third party lender, Certified Development Companies (CDCs) which are licensed by the SBA. .

Provides long-term, fixed-rated financing for major assets such as owner-occupied land, buildings, machinery or capital equipment.
Low down payment.
Low fixed-rate loans with terms up to 20 years.
Offers financing on total projects up to $5.5 million

7(a) Program

7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

7(a) loans are only available on a guaranty basis. This means they are provided by lenders who choose to structure certain loans by SBA's requirements and who apply and receive a guaranty from SBA on a portion of these loans. Under the 7(a) guaranty loan program, SBA typically guarantees from 50% to 85% of an eligible bank loan up to a maximum guaranty amount of $3,750,000. The exact percentage of the guaranty depends on a variety of factors such as the size of loan and which SBA program is to be used.

SBA Express

The SBA Express program has the same qualification requirements as the 7(a). It provides a streamlined process and faster turnaround. The program may also be used for revolving lines of credit.

Patriot Express

The Patriot Express Program is designed for small businesses that are 51 percent or more owned/controlled by veterans or members of the military community. Similar to the SBAExpress loan, this program has the same requirements as the 7(a). It provides a streamlined process and faster turnaround. The program may also be used for revolving lines of credit.

To learn more about SBA loans, contact one of our local Valley Bank SBA experts:

Brent Langberg Christine Grein

(253) 770-7696 (253) 770-7689

Email an SBA expert

Useful resource links:

U.S. Small Business Administration

Small Business Adminstration - Washington State