What is the SBA?
The U.S. Small Business Administration (SBA) is an independent agency of the Executive branch of the Federal Government. Its responsibility is to provide four primary areas of assistance to American small business – one of which is small business lending. The SBA sets the guidelines for lending, while SBA partners, like Fifth Third Bank, offer financing to small businesses.
When your small business needs financing, consider an SBA loan or line of credit. SBA financing offers distinct advantages designed to assist small businesses in accessing the capital they need to grow. Benefits of SBA financing versus conventional financing options include:
- Up to 25 year terms, with no balloon payments
- Fixed or variable interest rates up to 25 years
- As little as 10% down payment on commercial real estate
- Loan closing costs may be financed1
- A Fifth Third Bank SBA Specialist can help you complete your SBA loan application
Several SBA financing options are available to meet different business needs:
|SBA 7(a) Loans||SBA Express||SBA 504 Loans||SBA Exporting
Loan limit up to $5,000,000
Loan proceeds may be used for commercial real estate expansion/new construction, working capital, equipment purchase, refinancing existing debt, or exporting
Term loan or line of credit
Loan limit up to $350,000
Similar to 7(a) loan, but simpler application process and faster approval
SBA Patriot Express
Current spouses or widowed spouses of a service member or veteran may also be eligible to participate
Limit up to $500,000
Loan limits from $125,000 to over $10,000,000
Designed to help small businesses acquire fixed assets, such as commercial real estate or equipment
Provides affordable, long-term financing through certified development companies (CDCs) in cooperation with Fifth Third Bank
Borrower pays as little as 10% down payment on the purchase of commercial real estate and equipment
Includes job creation requirement3
Unique SBA loans are available to businesses who want to begin or expand exporting into international markets. These loans can also help you be more competitive if you are adversely affected by import competition.
SBA Export Express
Loans under this program can be term loans or revolving lines of credit up to $500,000
SBA International Trade Loan
This loan program offers a combination of fixed asset, working capital and debt financing options with a maximum amount of $5,000,000
This program offers small businesses a revolving line of credit that aids in addressing short-term and cyclical working capital needs.
Who qualifies for SBA?4
The SBA has specific criteria for businesses to qualify for SBA financing:
- The business must operate for-profit
- The business must operate in the United States or its possessions
- The business cannot have more than $15,000,000 in maximum tangible net worth and a 2-year average net income after Federal income tax of $5,000,000
- The business must show that the loan can be repaid from existing cash flow
To apply for an SBA line of credit or loan, visit a Fifth Third Banking Center or contact us at 1-866-531-4249.
Lending subject to credit review and approval.
- Other non-SBA fees may apply.
- Includes active duty, retired, reserve/guard, and commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration.
- Unlike 7(a) loans, 504 loans include job creation requirements: Manufacturers, for example, must create or retain one new job for each $100,000 of the loan, while all other industries must create or retain one new job for each $65,000 of the CDC 504 loan.
- Other SBA qualification requirements exist. Please contact a Fifth Third Bank SBA Specialist for more details.