Helping Small Businesses Grow
Small business is the lifeblood of a community. That is why Cedar Rapids Bank & Trust is committed to the growth and prosperity of small businesses and are determined to help our clients achieve and build on their success.
SBA loans can be used to:
- Purchase machinery and equipment
- Purchase, construct, expand or improve a building
- Acquire inventory
- Provide working capital
- Purchase an existing business or open a new business
- Refinance existing business debt on more favorable terms
Key benefits:
- Longer term and amortization
- Improved cash flow through a lower monthly payment
- Larger loan amount than may otherwise be available
- Lower down payment may be possible
- No balloon payments
SBA Loan Program Comparison
| Details | Standard 7(a) Loan | SBA Express Loan |
| Loan Amount | Loans up to $5,000,000 | Loans up to $350,000 |
| Maximum Term/Amortization | 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory and Leaseholds or 25 Years for Real Estate | 10 Years for: Equipment, Business, Acquisitions, Working Capital, Inventory and Leaseholds; 25 Years for Real Estate; 7 Years for a Revolving Line of Credit with Annual Review |
| Eligible Use of Proceeds | Working Capital, Inventory,Business Purchase, Equipment Financing, Real Estate Financing, Debt Refinancing, Leasehold Improvements | Working Capital, Inventory, Business Purchase, Equipment Financing, Real Estate Financing, Debt Refinancing, Leasehold Improvements, Revolving Line of Credit |
| Rate Structure | Floating rate (Quarterly): Minimum of 2.75% over the WSJ Prime | Floating rate (Quarterly): Minimum of 4.50% over the WSJ Prime |
| Collateral | 1st Lien on assets to be financed required. SBA may require additional collateral on other business or personal assets | 1st Lien on assets to be financed required. SBA may require additional collateral on other business assets or personal assets |
| Guaranty Fee Paid to SBA | Loans up to $150,000 there is no Guaranty Fee | Loans up to $150,000 there is no Guaranty Fee |
| Application | Loans from $150,001 to $700,000: 3% of Guaranteed Amount | Loans from $150,001 to $700,000: 3% of Guaranteed Amount |
Am I eligible for an SBA loan?
There are certain criteria that must be met in order to qualify for an SBA loan. The business must:
- Operate for profit
- Be located in the United States
- Meet credit qualifications
- 51% owned by citizen or legal permanent resident (LPR)
What information do I need to apply for an SBA loan?
Once you've decided to apply for an SBA loan, you will need certain information to apply. A Cedar Rapids Bank & Trust SBA specialist will help walk you through this process. Prior to meeting with us, use this checklist to gather the necessary information:
- Personal financial statement
- Resumes
- Business plan
- Income tax returns (personal and business)
- Business financial statements (less than 60 days old)
- Bank statements
- Collateral
- Legal documents
What will my banker ask me?
The following information is what you need to know before coming in to see a Cedar Rapids Bank & Trust lender.
- Why are you applying for this loan?
- How will the loan proceeds be used?
- What assets need to be purchased, and who are your suppliers?
- What other business debt do you have, and who are your creditors?
- Who are the members of your management team?
Cedar Rapids Bank & Trust helped me through the first phase of a very exciting, yet stressful, brewery start-up. They have the same passion for helping business owners as I have for making craft beer. I am forever thankful to CRBT for helping guide me through the SBA loan process so I could stay focused on growing my brand and brewing great beer!"
- Quinton McClain | Lion Bridge Brewing Company
- Quinton McClain | Lion Bridge Brewing Company