Meadows Bank is proud to offer Small Business Administration (SBA) loans to eligible credit worthy businesses throughout the Western United States. Meadows Bank is an approved lender for the SBA 7(a) and SBA 504 loan programs. The 7(a) and 504 loan programs are the largest and most popular of all SBA loan programs.
Meadows Bank has experienced loan officers dedicated solely to SBA lending to help guide you through the application process. The Bank will provide a decision on your loan request within 5 days of receiving a complete loan application. If you are looking for an SBA loan, come see the SBA Loan Experts at Meadows Bank.
Information on each program is listed below. For a side by side comparison of the loan terms, fees, etc. of the two programs, please Click Here to download the matrix.
SBA 7(a) loans are the most basic and popular Small Business Administration (SBA) business loans. The name "7(a)" comes from section 7(a) of the Small Business Act, which authorizes the SBA to provide financing for America's small businesses.
SBA 7(a) loans are provided by authorized commercial lenders like Meadows Bank who participate in the program. The participating lender funds the loan and receives a guarantee of up to 75% of the loan amount from the SBA. This allows us to make loans to businesses that might not qualify for financing from other lenders. In addition to funding the loan, the participating lender is also responsible for administering the loan throughout its life.
All 7(a) loan applicants must meet the program's eligibility requirements, which are designed to be as broad as possible. Businesses must meet SBA size standards, must be "for-profit", must be without internal resources to provide the financing, and must be able to demonstrate repayment ability.
Meadows Bank participates in the SBA's 504 loan program. This program is for the purchase of fixed assets such as commercial real estate and machinery and equipment of a capital nature, which are defined as assets that have a minimum useful life of ten years. Proceeds cannot be used for working capital.
There are three parts to a typical SBA 504 Loan:
Meadows Bank conventional first mortgage loan of approximately 50% of the purchase price of the assets.
SBA fixed rate debenture/second mortgage loan of approximately 40% of the purchase price of the assets.
Borrower contributes the remaining 10%. If the property is special use real estate, a 15% contribution is required by the borrower, and if the property is a special use and a start-up operation, a 20% contribution is required. Special use properties are properties such as gas stations, motels, assisted living facilities that can only be used for the purpose that they were built.
In providing a 504 loan, Meadows Bank works with your local Certified Development Corporation (CDC). Meadows Bank approves its portion of the financing request, and the CDC works with SBA to approve the SBA portion of the request. Since the SBA portion of the financing request is a debenture that must be arranged with the financial markets, the SBA funds are often not available until after the asset has been purchased. In order to fill this gap in the SBA financing, Meadows Bank provides interim financing for the SBA debenture amount so that your purchase transaction is not delayed.
We have SBA offices located in Arizona, California, Colorado, Nevada, Texas and Utah.
SBA Division Manager
John J. Beaubien
Joseph I. Weiner, CCIM
SBA Division Manager
Meadows Bank has been awarded Certified Lender status in the United State Department of Agriculture’s Business and Industry (B & I) lending program. We have loan officers dedicated to the B & I program to guide you through the application process. This program allows Meadows Bank to approve loans that it could not qualify on a conventional basis and it allows Meadows Bank to offer terms that are better than a conventional loan.
The purpose of the B&I Guaranteed Loan Program is to finance business and industry in rural areas in order to improve the economic and environmental climate in these communities. This is achieved by the USDA providing a loan guarantee to the lender making these types of loans to encourage lending in these communities. The guarantee is provided on quality loans which will provide lasting community benefits. It is not intended that the guarantee authority be used for marginal or substandard loans.
Please click here to view the USDA B & I Lending Program sheet. This sheet will give you the basics on eligibility, pricing, terms, fees, collateral and loan amounts.
If you have any further questions or would like to get started on a loan application, please contact Meadows Bank at 702-471-2045 and ask for a loan officer in our Government Guaranteed Lending Department. To learn more on the U.S. Small Business Administration please visit http://www.sba.gov.