Benefit from lower payments and longer terms, guaranteed by the U.S. Government.
Kearny Bank’s designation as a preferred SBA lender enables us to obtain faster loan approval with less paperwork, so you can get your business opened and on the road to success. As one of only a small number of New Jersey banks with this designation, loans can be granted in-house without additional SBA underwriting.
Loans are available up to $5 million, with terms as long as 25 years, down payments as low as 10% and flexible repayment options, making Kearny Bank a one-stop source for SBA lending.
When you’re a start-up business with no assets it’s almost impossible [to obtain funding]. That’s when Kearny Bank came in, looked at our business plan, understood our dream and helped us make it happen! Without our SBA loan, we would not have been able to finish the construction as quickly as we did (or even at all!). We are forever thankful to the KB team for believing in us and helping us make our dream come true!
– Justyna and Ania K.
SBA Funds Can Be Used For
- Business acquisition
- Partner buyouts
- Land and buildings (including purchase, renovation, and new construction)
- Refinance debt
- Working capital
- Machinery/equipment purchases
- Leasehold improvements
Named after section 7(a) of the Small Business Act, these are the most basic and frequently used type of SBA loans. The maximum loan amount is typically $2 million, and all owners of 20% or more are required to personally guarantee the loan. SBA provides up to a 75% guaranty on 7(a) loans in excess of $150,000.
SBA Express Loans
Called SBA Express Loans because they offer SBA credit decisions in less time than 7(a) Loans, you may be required to pay a higher interest rate compared to traditional SBA loans.
Available as both term loans and lines of credit, SBA Express Loans can be secured for a variety of uses including to buy real estate, refinance debt, and access working capita. SBA Express Loans typically offer loans and credit limits of up to $350,000.
Certified Development Company (504) Loans
A financing tool for economic development within a community, these long-term, fixed-rate loans provide financing for major fixed assets, such as land and buildings. The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.
The 504's maximum guarantee is normally $1 million, however it may go as high as $1.3 million if certain criteria are met. Typically, a bank may finance up to 50% of the project with a first mortgage lien over the property being financed, while a 504 will lend up to 40% of the project with a second mortgage lien over the property. The owner injects a minimum of 10% cash equity to fund the remaining project costs.
For complete information on capital loan solutions for small businesses, contact Kearny Bank’s SBA team at 800-273-3406.
Learn more about the SBA loans available, as well as the SBA loan requirements, by visiting the U.S. Small Business Administration website.