The U.S. Small Business Administration (SBA) works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders (like UTFCU).
There are several perks to SBA loans, including competitive terms, counseling and education, and other benefits unique to each loan type.
We specialize in SBA loans and are listed among the top lenders in the state, so you can enjoy confidence in UTFCU as your local, small business experts. In fact, according the SBA, we are the only credit union in Knoxville to be designated as an SBA Preferred Lender.
The Tennessee District Office of the U.S. Small Business Administration (SBA)—the largest backer of loans to America’s small businesses—has honored UTFCU as a top SBA lender numerous years. UTFCU was awarded the Credit Union of the Year in Tennessee for top volume for the federal fiscal years of:
The SBA’s primary business loan program helps qualified small businesses obtain financing when they might not be eligible for other business loans. The loan program can be used for a variety of general business purposes, including expansion and commercial real estate.
Use of Proceeds:
Expansion/renovation, new construction, purchase real estate, purchase equipment, purchase fixtures, lease-hold improvements, working capital, seasonal line of credit, or inventory.
Benefits to Borrowers:
Long-term financing, improved cash flow, fixed maturity, no balloons, and no prepayment penalty (under 15 years).
The SBA Express loan provides a limited guarantee for term loans and revolving lines of credit up to a maximum of $350,000. The processing time is usually expedited over a regular 7(a) Loan.
Use of Proceeds:
Expansion/renovation, new construction, purchase real estate, purchase equipment, fixtures, lease-hold improvements, working capital, seasonal line of credit, or inventory.
Benefits to Borrowers:
Fast turnaround; Streamlined process; Easy-to-use term loan or line of credit
This loan is for veterans and members of the military wanting to expand a small business.
Use of Proceeds:
Term Loan or Revolving Line of Credit. Expansion/renovation, new construction, purchase real estate, purchase equipment, fixtures, lease-hold improvements, working capital, seasonal line of credit, or inventory.
Benefits to Borrowers:
Same as SBAExpress and 7(a) Loans but with a reduced guaranty fee.
The 504 Loan Program provides long-term, fixed-rate financing for small businesses to acquire real estate, machinery or heavy equipment for expansion or modernization. These loans require as little as 10 percent down payment from the borrower.
Use of Proceeds:
Low down payment - equity (10,15 or 20 percent) (The equity contribution may be borrowed as long as it is not from an SBA loan) Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons
Long-term, fixed-asset loans; Lender (nonguaranteed) financing secured by first lien on project assets. CDC loan provided from SBA 100% guaranteed debenture sold to investors at fixed rate secured by 2nd lien.
Benefits to Borrowers:
Low down payment - equity (10,15 or 20 percent) (The equity contribution may be borrowed as long as it is not from an SBA loan) Fees can be financed; SBA /CDC Portion: Long-term fixed rate Full amortization and No balloons.
Call
(865) 971-1971
(800) 264-1971
Small Business Administration (SBA) financing is subject to approval through the SBA 504 and SBA 7(a) programs. Loan terms, collateral, and documentation requirements apply. Actual amortization, rate, and extension of credit are subject to necessary credit approval. UTFCU's standard document requirements apply. Restrictions may apply.
