What is SBA ?
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. They recognize that small business is critical to our economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace. Although SBA has grown and evolved in the years since it was established in 1953, the bottom line mission remains the same. The SBA helps Americans start, build and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam.
Our award-winning SBA Lending Group
- Wilshire Bank lives by our motto which is to provide you "service beyond your expectations," and our SBA Lending Group is no exception. By living by this motto, Wilshire Bank received many accolades for servicing our community with SBA guaranteed loans.
- In the last ten fiscal years through 2006, our SBA Lending Group was ranked within the top 20 in the nation for its SBA loan production.
- In the fiscal year of 2006 alone, the bank produced $175 million SBA 7(a) loans with 365 loans nationally.
- In 2006, the bank was named as “Export Lender of the Year’ and awarded in Washington D.C.
Wilshire Bank has many offices to serve you in the Greater Los Angeles Area, Dallas, Houston, Denver, Annandale (VA), New York, and New Jersey.
Wilshire Bank is also a PLP (Preferred Lender Program) lender, which means we are able to approve your loan based on credit standards without the concurrent approval from SBA, which means we provide the fastest SBA approvals among any SBA lender coast to coast..
Who is Eligible for SBA Guaranteed Loans?Basically, many small businesses qualify for a SBA guaranteed loan.
All types of business are generally eligible except for :
- Real Estate Investment and Other Speculative Activities
- Lending Activities
- Pyramid Sales Plans
- Illegal Activities
- Gambling Activities
- Charitable, Religious, or Certain Other Nonprofit Institutions
To be considered as a small business, you cannot exceed the following size restrictions. For a more specific industry size limitation for your particular industry, please contact the Wilshire Bank SBA Lending Group at 888-WSB-LEND (888-972-5363)
Proceeds for an SBA guaranteed loan CANNOT BE USED :
- To finance floor plan needs
- To purchase real estate where the participant has issued a forward commitment to the builder/developer, or where the real estate will be held primarily for investment purposes
- To make payments to owners or pay delinquent withholding taxes
- To pay existing debt unless it can be shown that the refinancing will benefit the small business and that the need to refinance is not indicative of imprudent management. (Proceeds can never be used to reduce the exposure of the participant in the loans being refinanced.)
What is an SBA Guaranteed Loan?
For those applicants that meet the SBA's credit and eligibility standards, the Agency can guaranty up to eighty five (85%) percent of loans of $150,000 and less, and up to seventy-five (75%) percent of loans above $150,000 (generally up to a maximum guaranty amount of $1,500,000).
Interest rates are negotiated between the borrower and the lender but are subject to SBA maximums, which are pegged to the Wall Street Journal prime rate.
SBA loan programs are generally intended to encourage longer term small business financing but actual loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed. However, maximum loan maturities have been established: twenty-five (25) years for real estate, ten (10) years for business acquisition and equipment; and, generally seven (7) years for working capital and inventory purchase.
Why Should I Do an SBA Guaranteed Loan Instead of a Commercial Loan?
- Longer terms
- Lower down payment
- No prepayment penalties
- No loan fees
How Do I Apply for an SBA Guaranteed Loan?
A simple phone call to (888) WSB-LEND (972-5363) will connect you to our SBA representative, who can expedite your loan application. At Wilshire Bank, each loan officer will assist you from start to finish to process your loan application in a timely manner.