SBA Loans – (CA) Community Advantage
Are you a startup business or happen to be in an industry that traditional financing entities deem as risky? Have you tried to sort through confusing terms and high-interest rates all on your own? Then you are in the right spot. At Prestamos, we are able to provide the support you need to help get you the right financing for your business. One way we do that is by offering SBA Community Advantage loans.
What is an SBA Community Advantage Loan?
It is a small business term loan of $100,000 to $350,000 partially backed by the Federal Government administered to business owners by community-based lenders like Prestamos. Because of this, they are affordable loans with relatively low rates and loan terms for up to 10 years.
The U.S. Small Business Administration (SBA) introduced the Community Advantage (CA) loan program to start-up and well established small businesses in underserved markets to manage credit, growth, and job development through capital funding and technical assistance (business consulting) support.
The SBA – CA Loan can be used for purchasing renovating, expanding commercial real estate which is owner-occupied. It can also be used as working capital, equipment purchases, debt refinance, and business acquisition.
Typically the loans can have up to a 10-year term, however, the length of time often depends on the intended use of the loan and the useful life span of the assets being financed.
Which businesses qualify?
Businesses must be operating as a legally registered for-profit company in the United States and have sufficient means of repaying the loan. There are SBA size standards and the need for illustrating the need of the financing that must be met prior to loan approval.
With the SBA Community Advantage (CA) program, both startup businesses and established businesses that are unable to qualify for other funding are eligible -if you have bad credit. However, because it is a government-sponsored program, there are a few industries that are not eligible for loans. Examples of these industries are political activities, religious organizations, and adult entertainment businesses. The SBA’s website has a full list of industries that are ineligible.
To quality, a business must be able to collateralize the loan to the greatest extend as possible to cover the loan amount. If a business is unable to do so, the owner’s personal may be used as collateral.
SBA Loans Aren’t Your Only Option
While the SBA Community Advantage (CA) loans are a great resource, not all businesses can meet the qualifications or get approved. Or, the amount of funding approved may not be sufficient for the needs of the business. In this case, there are other financing options and business development strategies available.
Prestamos has a dedicated team of experienced loan officers and business consultants who can not only guide you through the application process, but help you plan for growth and stability in your business. We have offices located in Arizona and Nevada and are expanding to other regions in the southwest.
If you have additional questions please contact us, or are ready to start an application for an SBA Community Advantage (CA) loan, please click on the “Apply Now” button.
• $100,000 to $350,000
Years in Business
• Start-up Business allowed
• Up to 10 years
• Up to 10 years
• Prime plus 4 variable
• Security interest in business assets
• Real Estate
• Other Personal Property
• 10 to 20 percent
• Credit Report Fee
• Application Fee
• Third Party Fees (i.e. Appraisal, Title, Legal, Filing, etc.)
• Origination Fee
• Unlimited personal guaranty of principal owners of 20% or more ownership
• Unlimited guaranty of an affiliate business
• Inventory or supplies
• Furniture or fixtures
• Machinery or equipment
• Real estate
• To pay existing debts
• Delinquent taxes
• Down payments
Community Impact Requirements
• Create or retain Jobs
Terms & Conditions
• No Pre-Payment Fee
• Debt Service Coverage
*Information subject to change without notice
Change the loan amount, interest rate, and years to calculate the monthly payment. Change the monthly payment to calculate the possible loan amount. *Remember this is only an estimate.