SBA Loans
Prosperity Bank is a Preferred SBA Lender
We offer loan products through the Small Business Act 7(a) and 504 Loan Programs to businesses who meet the following SBA eligibility requirements:
- Operates for profit,
- Falls within the size standards set by the SBA,
- Does business within the United States or its possessions, and
- Has reasonable equity to invest and has utilized available business and personal resources.
Ineligible businesses include:
- Real Estate held for Investment Purposes (i.e. rental properties, mini warehouses)
- Academic Schools
- Lending Activities (leasing companies, factors, finance companies)
- Pyramid Sales Plans
- Gambling Activities (casinos, race tracks, etc.)
- Charitable, Religious or Other Non-Profit Organizations
SBA 7(a) Guarantee Loan Program
The 7(a) program enables Prosperity Bank to provide financing to:
- Purchase owner-occupied commercial real estate including new construction, an existing building, or modernizing a current facility.
- Start-up a new business, expand existing operations, acquire an existing business, or refinance outstanding debt.
- Purchase machinery, equipment, and inventory.
- Acquire capital assets such as architects, engineering, impact fees, and installation.
The SBA requires all assets available to the business and its principals be pledged in order for the loan to be “fully secured”. Personal guarantees of all owners with 20 percent or more interest are required, and full or limited guarantees of those owning less than 20 percent may be required.
SBA 504 Loan Program
The 504 Program provides growing small businesses with long-term, fixed-rate financing for fixed asset projects, such as purchasing land and improvements, including new construction, modernizing existing facilities, or purchasing long term machinery and equipment. Proceeds may not be used for inventory, refinancing debt, or working capital.
An SBA 504 project includes three parts:
- A loan secured with a senior lien from the lending Bank covering up to 50 percent of the project cost,
- A loan secured with a junior lien from the Certified Development Company (CDC) covering up to 40 percent of the cost, and
- A contribution of at least 10 percent equity from the small business being helped.
Contact Us
For additional information please contact our Prosperity Bank SBA loan specialists:
Visit SBA’s website for more detailed information
