CORE Buisness Advisors, Inc. has helped buyer’s of businesses make their dreams a reality.  Our expertise and knowledge in securing business acquisition loans in a professional and efficient manner enables business sales to close.  You will find us easy to work with, and we will do everything possible to get your loan approved quickly and smoothly.  

SBA Loans:

The SBA enables its lending partners to provide financing to small businesses when funding is otherwise unavailable on reasonable terms by guaranteeing major portions of loans made to small businesses.

The Agency does not currently have funding for direct loans nor does it provide grants or low interest rate loans for business start-up or expansion. The eligibility requirements and credit criteria of the program are very broad in order to accommodate a wide range of financing needs. 

When a small business applies to a lending partner for a loan, the lender reviews the application and decides if it merits a loan on its own or if it requires additional support in the form of an SBA guarantee. SBA backing on the loan is then requested by the lender. In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending partner for a portion of its loss. 

By providing this guaranty, the SBA is able to help tens of thousands of small businesses every year get financing they would not otherwise. To qualify for an SBA guarantee, a small business must meet the SBA's criteria, and the lender must certify that it could not provide funding on reasonable terms without an SBA guarantee.

The SBA can guarantee as much as 85 percent on loans of up to $150,000 and 75 percent on loans of more than $150,000. In most cases, the maximum guaranty is $1 million. There are higher loan limits for International Trade, defense-dependent small firms affected by defense reductions, and Certified Development Company loans.

Businesses Eligible for SBA Loan:

Retail                         < $6 Million in Revenue (average)

Wholesale                < 100 employees

Manufacturing          < 500 – 1500 employees (depends on categories)

By the SBA definition, 98% of businesses are eligible.

7(a) Loan Guaranty Program:

The 7(a) Loan Guaranty Program is one of SBA's primary lending programs. It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA -- the Agency has no funds for direct lending or grants.

SBA has a set of guaranteeing guidelines and rules.  The lender also has a set of guidelines and rules specific to their company lending practices.  You may find two different lenders approving your deal with varying terms.

There are three types of SBA lenders: General Lender (GP), Certified Lender (CLP) and Preferred Lender (PLP).

Deal size:  7(a) loan $25,000 to $2 million.  Limit is $1 million SBA will guarantee.

The 504 Certified Development Company (CDC) Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide. Each CDC covers a specific geographic area.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. The maximum SBA debenture is $1,000,000 for meeting the job creation criteria or a community development goal. Generally, a business must create or retain one job for every $35,000 provided by the SBA. The maximum SBA debenture is $1.3 million for meeting a public policy goal.

Other Loans:

Business and Industry Loans:

The purpose of our Business and Industry loan program is to improve, develop or finance business, industry and employment and improve the economic conditions of the community.  We have several relationships with lending institutions.

Mezzanine Financing:

"Mezzanine" financing is long term, fixed rate subordinated (i.e., unsecured) debt with some equity features, generally in the form of stock warrants. Debt service is often interest-only for a considerable portion of the overall maturity, thus creating a highly effective method of financing corporate growth.  Mezzanine financing meets the needs of a new but profitable company prior to a bank being willing to offer lines of credit.  It generally includes subordinated convertible debt and yield based preferred shares, often structured with warrants or options.

Examples of mezzanine transactions:    

• Management/Leverage Buyouts.

• Expansion Financings (internal growth and/or acquisitions).

• Recapitalizations and Divestitures.

An ideal candidate profile:

• Manufacturing, distribution and service companies.

• Sustainable competitive advantages in niche markets.

• Stable and predictable operating income.

• Not subject to rapid technological change or wide cyclical swings in volume and profit.

• Operated by experienced management teams.

• Post-"second round" and pre-IPO.

Investment interest:  

• A minority interest that has no voting control.