SBA Loan Programs

SBA loan programs offer vital financial assistance to small businesses, providing access to funding with favorable terms and conditions. Whether you're seeking to start or expand your business, these programs offer flexible financing options and longer repayment terms, empowering you as an entrepreneur to achieve your goals and fuel economic growth. At Encore Bank, we offer four prominent SBA loan programs.

SBA 7(a) Loan

This loan offers versatile financing options with flexible terms and favorable interest rates. Provides funding for purposes such as working capital, equipment purchase, business acquisitions and debt refinancing and is ideal for startups and established businesses alike.

    Up to 10 years for non-real estate projects

    Up to 25 years for owner-occupied real estate projects

    Up to $5,000,000 loan amount

SBA 7(a) Small Loan

Where small businesses find big opportunities. Designed to fuel growth and innovation, these loans offer flexible financing solutions tailored to the specific needs of small enterprises.

    Maximum of $500,000 with SBA guarantees ranging from 75% – 85%

    The loans are credit scored through SBA’s credit scoring model, subject to a minimum credit score

    The loans have relaxed underwriting and collateral requirements compared to SBA 7(a) loans over $500,000

    Terms, interest rates and conditions are the SBA 7(a) loans over $500,000

Working Capital CAPLines

The lifeline for businesses in need of flexible financing to support day-to-day operations and growth initiatives. Designed to provide quick access to funds, these CAPLines offer tailored solutions to optimize cash flow and seize new opportunities.

    Used to fund the short-term operating capital needs of the business

    SBA term can be for up to 10 years and have to be reviewed and renewed annually, similar to conventional commercial revolving lines of credit

    May or may not be monitored by a Borrowing Base Certificate, depending on how conventional commercial revolving lines of credit are serviced

    Loans > $50,000, Term < 7 years: Maximum interim rate = WSJ + 2.25%

    Loans > $50,000, Term > 7 years: Maximum interest rate = WSJ + 2.75%

    Adjusts as frequently as monthly with any change in WSJ

   Maximum of $5,000,000 (SBA guarantees lesser of 75%, or $3,750,000) loan amount

SBA 504 Loan

This loan allows small businesses to find the support they need to invest in long-term growth and stability. Tailored to facilitate owner-occupied commercial real estate and heavy equipment purchases, this program offers favorable terms and low-down payments, empowering entrepreneurs to acquire essential assets and expand their operations.

   Up to 10 years for heavy equipment projects

    Up to 25 years for owner-occupied real estate projects

    Loan amount: total project is not limited