Merchants Business Credit

In looking for funding options, businesses are wise to take into consideration SBA and conventional loans where possible. Merchants Business Credit works with some of the most active and innovative SBA and conventional loan lenders in the nation, thereby providing clients with all-encompassing financing solutions to their capital needs. Proceeds from such loan programs can be utilized for just about anything a business would require; working capital, expansion, acquisition, construction, equipment, and start-up costs.

SBA Loans

SBA loans are term loans made by a lending institution and are partially guaranteed by the U.S. Government. These loans are guaranteed up to 85% by the Small Business Administration (SBA) and can have terms up to 25 years. Some of the most popular SBA loan programs include:

7(a) Loan Program - SBA’s most popular program with loan amounts up to $2,000,000 and maturities up to 25 years. Loan proceeds can be used for just about any business purpose.
504 Loan Program – intended for long-term financing of fixed assets such as heavy equipment, buildings and real estate. This program typically consists of a senior and junior lien, with a private lender providing 50% of the funding and a Certified Development Company (CDC) providing 40%. A business owner’s capital injection comprises the left-over 10%. Maturities are up to 20 years and SBA provides a 100% guaranty (up to $1.5 million) on the CDC’s portion.

Conventional Loans

Conventional loans are simply term loans made by a lending institution – be it a bank, non-bank lender, credit union, or independent finance company. Proceeds can, in most instances, be used for exactly the same purpose as an SBA loan – working capital, equipment, construction, expansion, etc. Credit requirements vary from lender to lender, with real estate loans usually having less stringent requirements than other forms of financing.

Below is a list of some of the programs available:

Conventional Loans – for just about any business purpose, with loan amounts of up to $3.0 million.
Real Estate Program – for acquisition, refinance, expansion, rehabilitation, bad credit, partner buy-out, and cash out. Includes multi-family housing (5+ units), office, retail, industrial, hotel/motel, and special purpose. Loan sizes from $100,000 to $10 million - with highly competitive rates and terms up to 30 years.
Business Acquisition – Business Loan – for the acquisition or start-up of a practice. Loan amounts up to $2 million and maturities up to 10 years.