Neida Heusinkvelt

(816) 426-49061

7(a) Loan Guaranty Program - 75-85% Guarantees Made by private lenders – not a direct loan program Maximum loan amount can be up to $5,000,000

7(a) program requirements: Good credit history demonstrated record for success good character sufficient funds to operate the business at a profit collateral the loan as fully as possible

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Flexible Maturities: Up to 10 Years for working capital Up to 25 years for fixed assets

▪ real estate, construction, equipment Interest Rates:

Negotiated between borrower and lender, can be fixed or variable. However most interest rates for 7a business deals are variable rates, tied to prime rate.

Typically cannot exceed base rate plus 2.75% except with SBAExpress loans which can go higher

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1 Yr or less Any $$ 0.25%

Over 1 yr $127,500 or less 2.0%(lender keeps 25% of fee)

Over 1 yr More than $127,500 3.0-3.75%

7(a) Program Guaranty Fees7(a) Program Guaranty Fees::

MaturityMaturity SBA PortionSBA Portion Guaranty Guaranty FeeFee

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7(a) SBAExpress - Up to $350,000 and under - with 50% guaranty

- Under Small Business Jobs Act of 2010 SBA temporarily has increased the maximum loan SBX amount to $1,000,000 thru September 28, 2011 lender uses its own documentation can be used for a variety of purposes, including

funding working capital lines of credit In past decade between 35-65% of SBA lending

has been done thru this SBAExpress program! (Community Express pilot version expired 4/30/

2011.)

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7(a) Patriot Express - Up to $500,000 and under 75% - 85% guaranty Started June 28, 2007 & extended to December 31,

2012 Same processing path as Regular SBAExpress

Created to Serve Special Customers Honorably-discharged Veterans Service-Disabled Veterans Service Members Leaving Active Duty eligible for

Transitional Assistance Program (TAP) Reservists and National Guard Members Current Spouses of any of the above Widowed Spouse of a Service Member or Veteran who

died during service, or of a service-connect disability6

7(a) Lender Advantage – Up to $350,000 and under 75% - 85% guaranty Started as a pilot program in the Midwest in May 2008

Key Features Designed for small SBA loan volume lenders (rural

banks and small community lenders) Streamlined loan application Simplified loan eligibility questionnaire Expedited SBA target processing time - 5 days

New Pilot versions of Small Loan Advantage and Community Advantage Programs were added February 17, 2011

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CAPLINES Loans Used to meet short-term and cyclical working capital needs

Can be a one project type deal or can be on a revolving basis. Three Types: Seasonal, Contract, Small Builder

Also, Two Types of Asset Based Loans Are Available:

•Standard Asset Based

•Small Asset Based

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Loan size: $500,000 minimum - $5 million maximum Maximum of 75% guaranty

Loan guaranty product for revolving LOCs that target retail dealers of new and used titleable inventory (automobiles, boats, RVs, motorcycles, mobile homes, etc).

Minimum loan maturity of 1 year and maximum of 5 years Collateral must be a first lien on all titleable inventory

acquired with proceeds for this loan.

Participating Lender must have existing floor plan financing policies and procedures to meet SBA approval.

Will remain available until September 30, 2013. It is a pilot 7(a) loan guaranty program – using same pool of funds as other 7(a) loans.

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Export Working Capital Loan 90% Guaranty

• Pre-Export and Post-Export Transactions can be Financed

• Paid back from proceeds of the export sales• Maximum Loan size is $5.0 Million International Trade Loan– Up to a 90%

Guaranty • Used for producing goods or services within

the U.S. to export elsewhere • Can help firms adversely affected by import

competition • Maximum Loan Size is $5.0 Million

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504 Fixed Asset Loan • Long-Term financing for fixed assets like

buildings & equipment (not vehicles).• Up to $5.0 million in SBA-backed debentures –

more for public policy goals like women-owned and veteran-owned businesses and manufacturers.

• Loan must generally create or retain one job for every $65,000 of debenture proceeds provided by the SBA.

• Available throughout KS and MO from CDCs • Typical Expansion project is 50%/40%/10%

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Jobs Act Program started February 28 and ends September 27, 2012.

Specific pool of SBA debenture dollars set aside by Congress. No minimum – max is $5 Million.

Uses the existing Certified Development Companies (CDC) processing procedure of the 504 loan program. Existing business loan must be ballooning. Existing loan incurred not less than 2 years ago must have

been current for the past year with no payment being deferred or past due for more than 30 days.

Proceeds are to be used to refinance qualified debt with no money going to expansion or purchases.

Independent appraisal of the FMV of the project assets and any additional assets offered as additional collateral must be provided and dated within 6 months of the application.

85% of the refinance must have been originally eligible 504 purposes.

Structure is 50%/40%/10%.

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MICROLOAN - $35,000 or less Not presently available thru SBA in the KC area

but may be available locally from other state and economic development organizations.

SURETY BOND GUARANTEES – provides surety guarantees for the benefit of service businesses who have contracts that require surety bonding. This program is processed regionally in Denver CO

ARC Loan Program expired on September 30, 2010. This was a temporary program initiated by the Recovery Act of 2009.

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www.sba.gov – new and improved…. www.kcsourcelink.com – Kansas City area KS SBDC Network – locations in Topeka, Emporia,

Fort Hays, Garden City, Overland Park, Pittsburg, Lawrence, and Wichita

MO SBTDC Network –locations in Columbia, Warrensburg, Chillicothe, Joplin, Maryville, Kansas City, Springfield, St. Joseph

WBC – Lenexa KS PAC- Kansas City MO, BIC – Kansas City MO SCORE – chapters in most major cities

15August 19, 2011

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Creates a documented niche reputation as “small business friendly” lender as compared to its peers.

Can provide an additional source of fee income. The guaranteed portion of the loan is saleable on an

active secondary market which can provide liquidity. The guaranteed portion of SBA loans has a lower

risk-based capital requirement. Can provide support for loans with less than optimal

collateral coverage. SBA Certified Development Company (504) loans

can provide fixed asset financing for up to 90% of the project cost.

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