Borrego Express Capital Loan Programs
 |
| Approved to offer SBA loan products under SBA's Preferred Lender program. |
Who is Eligible?
All SBA eligible businesses and/or borrowers
Loan Features:
- Loan is fully amortized with no access fees per transactions
- Automated process provides fast turn-around time
- Loan amounts of $5,000 to $50,000
- 10 year term – Fully Amortized
- Collateral may not be required
- Variable Interest Rate based on Wall Street Journal Prime,
adjusted calendar quarterly:
- Loans of $ 5,000 - $25,000 at Prime + 4.75%
- Loans of $26,000 - $50,000 at Prime + 3.75% - 4.75%
- Loans of $51,000 - $100,000 at Prime + 4.5%
- Loan closing costs deducted from loan proceeds.
- SBA Guaranty fee of 2% of the guaranteed portion (85%) of the loan will be deducted from the loan proceeds
- Loan payments automatically drafted from the business checking account at your established financial institution
- No prepayment penalty – 21 day payoff notification required
- Technical Assistance Included – borrowers receive pre-and post loan closing management and technical assistance
Eligibility Requirements:
- All SBA eligible industries considered
- Start-up businesses allowed
- Loan proceeds for business acquisition not allowed
- Working capital loans to businesses after acquisition has been fully completed are permitted
- Franchise must be on the SBA approved Franchise Registry (www.franchiseregistry.com)
- Liquid Assets of individual owner cannot exceed $100,000 – does not include IRA, 401K or other restricted accounts
- Tax returns required in some cases
- Utilizes Fair Isaac Small Business Credit Score System for pre-approval of credit, which evaluates credit history of applicant and industry data including type of business, length of operations, etc. Personal credit issues like past due accounts, collections, accounts settled for less than full balance, etc. have very negative effect on applicants business score and loan decision
Ineligible Businesses:
- Not for profit business
- Investment Real Estate – apartments, rental housing or multi-tenant buildings
- Speculative Real Estate or Business Ventures
- Agricultural and farm businesses (growing crops or animals)
- Applicants doing business in foreign countries
- Businesses engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting
- A business with any products or services of a sexual nature
- A business that is engaged in lending (with the exception of Mortgage Brokers)
- A business that is engaged in gambling
- A business that is engaged in pyramid sales and distribution
- A business that restricts patronage
- Consumer and marketing cooperatives
- A business engage in Lobbying activities (50%)
- Insurance companies (Independent Agents are OK)
- SBA loan packagers
- A business or borrower that has a prior loss to the government
Loan Application Process:
- Application submitted by T/A Provider, Applicant, or Participating Bank Partner
- Upon initial credit review, processing checklist is issued to borrower and/or TA Provider
- Commitment and closing documents are issued once all checklist items are received, reviewed and approved by underwriting (including business plan)
- Funding occurs after receipt and review of executed loan documents
