SBA Programs
The U.S. Small Business Administration (SBA) offers a broad array of programs to help your business grow and prosper. Since it was established in 1953, the SBA has helped many businesses achieve their goals. Univest is proud to be associated with the SBA. In recognition of our strong track record, the SBA has named Univest a Preferred Lender. We also participate in the Express and Patriot Express loan programs. This allows us to offer you a quicker approval process and faster access to funds.
SBA loans offer advantages over conventional bank loans. SBA loans may be easier to qualify for, so it offers your business more flexibility. Longer terms are available, which translates into lower monthly payments. SBA loans are fully amortizing, which means there are no balloon payments to negotiate.
Who is Eligible?
The business must be operated for profit and fall within the size standards set by the SBA. Loans for a wide variety of industries are available, including retail, service and manufacturing businesses.
What is a Small Business?
The SBA determines if the business qualifies as a small business based on the average number of employees during the preceding 12 months or on sales averaged over the previous three years.
Maximum Size Standards:
Retail - Annual sales less than $5 million, depending on industry. Wholesale - capped at 100 employees. Manufacturing - may range up to 1,500 employees depending on industry in which the applicant is primarily engaged.
Amount of Loan:
The maximum loan amount that the SBA will guarantee is $2 million, with SBA’s guaranteed portion capped at $1.5 million. Manufacturing companies may be eligible to borrow $4 million, under special circumstances.
Interest Rates:
Rates are negotiated between the borrower and the bank, and are based on the credit merits of the applicant. The SBA sets maximum interest rates that may be charged. Rates may be fixed or floating, depending on the type of loan.
Maximum Terms
- Building purchase – 15-20 years
- Equipment – 7-10 years
- Working Capital – 7 years
Proceeds may be used to purchase a building your business will occupy, purchase machinery, equipment or inventory, purchase an existing business or to establish a new business. Some limitations exist on refinancing present debt.
Collateral Requirements
Borrowers must pledge sufficient assets, to the extent that they are reasonably available, to adequately secure the loan. Personal guarantees are required from those owning 20% or more of the business. Liens on personal assets of the principals may also be required.
Credit Requirements
A loan applicant must:
- Be of good character, have a good credit report, and be current on all taxes.
- Show ability to operate a business successfully.
- Have enough capital in an existing business so that, with an SBA loan, the business can operate on a sound financial basis.
- Show the proposed loan is adequately secured and possesses reasonable assurance of repayment.
- Show that the past earning record and future prospects of the firm indicate ability to repay the loan and other debt, if any, out of profit and cash flow.
- Be able to provide sufficient capital to have a reasonable amount available to withstand possible losses, particularly during the early stages of a new venture.
- Business must be owner-operated.
We invite you to discover the difference a OneOnOne™ business banking relationship can make for you and your business. To learn more, or to speak with your OneOnOne business banker, email, call 800.660.4276 or visit any one of our convenient Financial Service Centers located throughout Bucks and Montgomery Counties.