Brock White
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SBA Lending
Using tools from the Small Business Administration to help your business...

As an SBA lender, the State Bank of New Prague can provide you with additional financing alternatives.

Virtually any business purpose can qualify for a SBA guaranteed loan, including:

  • Commercial real estate purchase
  • Construction
  • Business acquisition or expansion
  • Equipment or inventory purchase
  • Refinance
  • Working capital

The State Bank of New Prague and the SBA offer two separate, but equally important loan programs:

Basic 7(a) Loan Guaranty

Customer: For-profit small businesses

Function: Serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It's also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions).

Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. The maximum SBA guaranteed loan is currently $2,000,000.

Certified Development Company (CDC), a 504 Loan Program

Customer: For-profit small businesses requiring "brick and mortar" financing

Function: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower. The maximum SBA debenture generally is $1 million (and up to $1.3 million in some cases).

For more information regarding these programs click here to be redirected to the SBA's website.

To find out how the State Bank of New Prague can assist your small business, please contact us at 952.758.4491.