How To Get An SBA Loan – Winston Rowe & Associates Experts In CRE Financing

How To Get An SBA Loan – Winston Rowe & Associates Experts In CRE Financing

The Small Business Administration does not actually loan money. Instead, it serves as a type of partial-repayment cosigner, which is why collateral is typically needed to acquire a SBA loan.

SBA loans are used for different purposes. While most people associate a business loan with start-up capital,

SBA loans serve more purposes. For instance, funds can be used to refinance expensive debt, purchase equipment and/or inventory, expansion, or even to buy real estate.

Here are some more things you need to know about SBA loans:

There are 6 types of SBA loans:

1. SBA 7(a) Loans

SBA 7(a) loans are the most common type of SBA loan. These loans of up to $5,000,000 can be used for working capital, to refinance debt, or to buy a business, real estate, or equipment.

The SBA 7(a) program includes the SBA Express Loans and SBA Advantage Loans.

2. CDC / SBA 504 Loans

CDC / SBA 504 loans combine a loan from a nonprofit CDC with a loan from a bank to create a long term, low interest rate loan for up to $20,000,000 for the purchase of owner occupied commercial real estate and heavy equipment.

3. SBA CAP Lines of Credit

CAPLines are SBA lines of credit meant to help small businesses meet short-term and seasonal working capital needs. The SBA offers 5 types of these lines of credit.

They can be fixed or revolving, have a max term of 5 years, and otherwise adhere to SBA 7(a) rules.

4. SBA Export Loans

Export loans are designed to help small businesses fund new exporting operations and offer cash flow solutions to small business so they can be more flexible with the terms they offer their international customers.

5. SBA Microloan Program

Microloans are up to $50,000 with up to 6-year terms.They have higher interest rates (8% -13%) than most other SBA loans.

The SBA issues Microloans through nonprofit, community-based organizations. Microloans cannot be used to refinance debt or purchase real estate.

6. SBA Disaster Loans

Disaster loans are available to small businesses and organizations that are located in a declared disaster zone and suffered damage to property, businesses that incurred economic losses because of a disaster, and businesses that lose a key employee who is a military member and is called to active duty.

Winston Rowe & Associates was formed in 2011 with a core focus on flexibility. They really want to be able to find a way to help everyone who comes to them find a funding solution that meets their needs.

The best funding solutions occur when they combine data with consultation and common sense.

That’s why Winston Rowe & Associates actually wants to speak with clients, so we can truly understand your business and its distinct needs.

They have access to a full spectrum of capital sources to meet almost every commercial real estate financing solution.

You can check them out on line at or give them a call at 248-246-2243

SBA Loans For Hotels, Shopping Centers, Office & Apartment Buildings, Gas Stations

SBA Loans

Getting an SBA loan is a new experience for many entrepreneurs and fledgling business owners. At present the SBA has some of the best financing available for businesses, such as gas stations, hotels, apartment complexes, office buildings and shopping centers.

It is extremely important that business owners do their homework before applying for an SBA loan.

A great place to start is Winston Rowe & Associates, they are a national no upfront fee commercial real estate finance consultant.

Getting an SBA loan requires a lot of preparation and effort, with prospective applicants getting only one bite at the apple. That’s why it’s important to do your home work on the commercial property type that you are trying to finance and work with an experienced financing firm.

What is the Small Business Administration (SBA):

The SBA stands for the Small Business Administration and was created to help small businesses in the United States.

While there are other programs that the SBA offers besides financing, their loan program is one of the most well-known because it guaranteed by the US. Government and has favorable rates and terms, especially in today’s economic environment.

It is important to note the the SBA DOES NOT make loans, but rather, guarantees loans made through private banks. The actual payments you make will be to a regular commercial bank, not the US government.

The SBA creates the program and guarantees most of the loan against default. It is important to remember that if you have access to other low-cost business capital you will NOT be approved for an SBA loan.

The program is intended for those businesses that do not have access to low-cost capital elsewhere

What do you need to apply?

This is an open-ended question depending on what type of business you are trying to finance. However, the rule of thumb here should be you will need a large amount of documentation for any SBA loan.

The reason why is that business loans are inherently risky given that most small business fail within 5 years of inception.

Because the government is guaranteeing most of the loan, they set the documentation requirements to help mitigate this risk.

Count on having to provide a detailed business plan, personal character essays/references, as well as detailed financial statements and projections. It is not uncommon for an SBA loan application to have in excess of 180 pages.

However, the upside is that it could make the difference between success and failure for you business.

What types of loans are available?

The SBA has several different loans designed for various business needs. The first is known as the SBA 7a loan. This loan is designed for small business and has the flexibility to meet the needs of most businesses.

Loans are made through commercial banks, with a portion guaranteed by the SBA. Loan purposes include working capital, business renovations, equipment, furniture and fixtures, land acquisition and new construction as debt refinancing under certain circumstances.

Duration of the repayment term can vary, depending on loan purpose between 10 and 25 years.

The SBA 504 & SBA 7a Loans:

This loan is designed more for businesses that may be part of a larger development or redevelopment within a community of city. This type of loan is typically just one of many used in a “financing package”, unlike the SBA 7A loan, which usually will “stand alone” as the primary financing vehicle.

In an SBA 504 loan type scenario, a private bank will provide up to 50% of the financing, with SBA 504 loan picking up an additional 40% while the business borrower will contribute their own funds of 10%.

It is important to remember that these types of loans are obtained also with the help of a CDC, or certified development company that is a non-profit corporation set up expressly for community economic development.

Getting an SBA loan may be the best decision you can make as a business person. The key is to allow you the adequate amount of time to get acquainted with multiple requirements and “hoops” you need to go through to get this type of advantageous financing.

While an SBA loan is the best option, it will never be a quick path to funding, so take the time to do your homework, and it will be time well spent.

Winston Rowe & Associates success is measured by our clients’ success, and their mission is to be your source for the most appropriate – and advantageous – hotel financing solution that helps you achieve your goals.

Their experienced and enthusiastic SBA professional team has the expertise needed to make the loan process as easy as possible for their clients.

SBA 7a & SBA 504 Loans Commercial Loans

SBA 7a & SBA 504 Loans

Winston Rowe & Associates, a national commercial finance firm that specializes in assisting clients obtain Small Business Administration (SBA) loans for hotel acquisitions, without upfront fees.

Many of Winston Rowe & Associates clients quickly discover after locating a hotel to acquire that unless their planning on putting 35% down or more in the form of cash and the hotel has a strong flag and great historical financials your only option will be either the SBA 504 or the SBA 7a loan.

The SBA 7a is reserved for loans under $2,000,000, while the 504 can go up to $7,000,000. The SBA is a Prime plus rate which most of the time floats.

Winston Rowe & Associates works with a number of banks that offer this as a 5 year fixed 25 year amortization loan.

The 504 program boast long term fixed rate financing, like 5 or 10 years. However most importantly, both options provide 85% loan to cost and or loan to value financing which is becoming very rare in this market.

Winston Rowe & Associates can have an SBA loan closed in 45 days. At present any issues that caused the bad press that the SBA received (and a lot of it deserved) has been resolved.

Most importantly the SBA unlike so many other banks and lenders are still funding hotel deals.

Winston Rowe & Associates knows what a great investment opportunity hotel/motel ownership can be.

They offer both mortgage financing and refinancing for an array of hotel owners or soon-to-be owners, for hotel acquisition and construction of new hotel properties.

Their experienced and enthusiastic hospitality professional team has the expertise needed to make the loan process as easy as possible for our borrowers.

Winston Rowe & Associates success is measured by our clients’ success, and their mission is to be your source for the most appropriate – and advantageous – hotel financing solution that helps you achieve your goals.