About Small Business Administration (SBA Lending)
Let us help your business grow through our SBA Loan Program.
It’s time to move your business forward!!
Oklahoma State Bank has developed a lending department focusing strictly on SBA Lending. This department is staffed with SBA lending and the SBA process. U.S. Small Business Administration (SBA) backed loans from Oklahoma State Bank may be the solution you need to move your business to the next level. Whether it’s expanding your business by moving to a new owner occupied location, business acquisition or new equipment to support customer growth, an SBA backed loan is the perfect solution.
Who is Eligible?
Small businesses with less than a $6 million net worth, and less than $2 million net income over the past two years. Excluded businesses include non-profit organizations and businesses which deal with speculation and investment.
• Retail - Less than $6 million in annual sales
• Wholesale - Less than 100 employees
• Manufacturing - Less than 500 employees
Benefits of SBA Loans
- Longer Term – Longer loan terms allow for lowers payments. Having a longer loan term can be a significant benefit to your company’s cash flow.
- Lower down Payments – Makes upfront cost more affordable
- Assist with business growth – SBA loans are designed to help the small business grow. The lending structure allows financing to small businesses that may not qualify under traditional lending.
- SBA 7(A) LOAN
SBA's 7(a) Loans feature long-term financing for most business purposes including the purchase of real estate, equipment, business acquisition, refinancing and working capital. Loans are made by OSB and a portion is guaranteed by the SBA.
- Funding up to $5,000,000
- Working Capital – up to 7 years
- Machinery and Equipment – up to 10 years
- Real Estate – up to 20 years
- Interest Rate
- Based on Prime + spread (Maximum 2.75%)
SBA Guaranty Fees are based on the amount of the loan and the term
*Although there is an SBA guaranty fee associated with SBA loans, a recent bill passed by the Oklahoma legislature allows businesses to recover this fee. Oklahoma small businesses can claim a state tax credit equal to the guaranty fee paid for their SBA guaranteed loan
- SBA 504 LOAN
The "504 loan" provides SBA direct permanent financing for real estate purchases, completed construction or machinery and equipment purchases. The "504 Loan" features low fixed interest rates, long terms and low borrower equity.
- The SBA lends up to 35 to 40% of the completed project cost with 10 to 15% borrower equity and the remaining 50% provided by OSB on a conventional basis. Equity contribution determined based on type of property, i.e. special purpose and level of experience of borrower.
- Loan amount up to $2,700,000 for the OSB portion
- Terms up to 20 years on real estate and up to 10 years on machinery and equipment
- Rates are fixed or variable
Information Needed to Apply
A variety of information and documents are needed to complete the application process and are summarized below. The documentation required varies depending on the size of your loan request. In general, larger loans and/or projection-based loans require more documentation. The good news is once you have created an account, you can stop and start the application process whenever you want and your information will be saved.
- Personal Information
- Names of owners and ownership percentages
- Contact details
- Birth date
- Social Security number
- Valid driver’s license or passport information
- Personal financial information
- 3 years personal tax returns including all schedules
- Business Information
- Business name and contact details
- Type of business
- Date of inception
- Tax identification number
- Previous government loan history
- Management team information
- Business plan (if applicable)
- Business financial information
- Business projections
- Formation and other business documentation
- 3 years business tax returns including all schedules