![Two florists looking at a laptop surrounded by flowers](/https/www.royalbusinessbankusa.com/assets/files/PcETs20y/header_flourists.jpg)
![Two florists looking at a laptop surrounded by flowers](/https/www.royalbusinessbankusa.com/assets/files/PcETs20y/header_flourists.jpg)
Help your business grow and achieve your goals
As a member of the SBA Preferred Lender Program (PLP), Royal Business Bank offers Small Business Administration loans for various loan purposes.
SBA 7(a) Loan Program
This is a government-guaranteed loan program to encourage lenders to extend business loans to qualifying small businesses that cannot obtain funds on reasonable terms through other conventional lending. The maximum SBA 7(a) Loan amount is $5,000,000.
Use of Funds
- Owner-User Commercial Real Estate Purchase
- Business Acquisition (Asset Purchase or Stock Purchase)
- Business Debt Refinance
- Partner Buy-Out
- Working Capital
- Machinery & Equipment Purchase
- Construction & Leasehold Improvements
Down Payment
- Minimum 10% for commercial real estate purchase
- Minimum 10% for business acquisition or start-up business (Less than 2 years of operations)
Terms
The maximum loan maturities vary depending on the use of proceeds:
- Commercial Real Estate Purchase/Refinance – up to 25 years
- Business Acquisition – up to 10 years
- Machinery & Equipment Purchase – up to 10 years
- Working capital – up to 10 years
- Leasehold improvements – up to 10 years
Interest Rate
- Variable rate = Wall Street Journal Prime Rate + A margin
Eligibility Requirements
- Must be a for-profit business located in the United States
- Must meet SBA size standards as to annual gross revenues or number of employees
- Cannot be a business engaging in illegal activity under federal, state, or local laws (eg. Cannabis related business)
SBA 504 Loan Program
This program provides small businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. It is designed to create employment opportunities by enabling expanding businesses to reserve working capital for growth.
Use of Funds
- Commercial Real Estate Purchase
- New Facilities Construction
- Commercial Mortgage Refinance
- Heavy Machinery and Equipment Purchase
Standard Loan Structure
- 50% financing from Royal Business Bank
- 40% financing from SBA 504 Loan
- 10% down payment from borrower
Terms
- Bank portion can be amortized up to 25 years with a 10-year maturity
- SBA 504 portion can be amortized up to 25 years with a 25-year maturity
Interest Rate
- Bank portion can be either a fixed or variable rate
- SBA 504 portion is a fixed rate
Eligibility Requirements
- Must be a for-profit business located in the United States
- Must meet SBA size standards as to annual gross revenues or number of employees
- Cannot be a business engaging in illegal activity under federal, state, or local laws (eg. Cannabis related business)
Our bankers are happy to assist you with your Lending needs.Please reach out for more information.
Edwin Oh Daniel Shin 213-533-7953 213-519-3198