May 50/50 Winner - Amy Woods - Fifth Third Bank

SBA (Small Business Administration) Loans As a business owner you are the true engine that keeps our nation strong and on the rise. At Fifth Third Bank, we recognize the challenges and opportunities the current economy has brought upon us all. We are here to support small business. And now more than ever, we want to let you know, we are here to help. The new Small Business Administration (SBA) Guidelines are now in effect. Fifth Third Bank has a dedicated team of SBA Specialists to help you access capital rapidly so your business continues to grow. Some key benefits of the new program are: • No SBA borrower fees* • Better access to capital • Faster approval Fifth Third Bank has a proven track record that business owners like you can depend on. Please do not hesitate to call Amy Woods at 630-294-2109 for any questions you may have on SBA products and related small business banking. The benefits of an SBA loan stem from the advantages of an SBA loan compared to a conventional small business loan: • Longer amortization periods - up to 25 years versus 15 for conventional loans • Closing costs can be financed on an SBA loan Uses Of a Small Business Administration Loan SBA loans can be used for many business purposes including: • Buying real estate • Construction, renovation or leasehold improvements • Buying furniture, fixtures, machinery, and equipment • Buying inventory; and working capital 7 (a) Small Business Loans 7(a) loans are the most basic and most used type loan of the Small Business Administration’s small business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. Uses of a 7 (a) Small Business Loan 7(a) Loans are used to establish a new small business or to assist in the operation, acquisition or expansion of an existing small business. Uses may include: • Purchasing land or buildings • Financing new construction, expansion or conversion of existing facilities • Acquiring equipment, machinery, furniture, fixtures, supplies, or materials • Long term working capital including the payment of accounts payable and/or for the purchase of inventory • Refinancing existing business indebtedness which is not already structured with reasonable terms and conditions • Short term working capital needs including: seasonal financing, construction financing, export production, and for financing against existing inventory and receivable under special conditions • Purchasing an existing small business SBA 504 Small Business Loan The 504 Loan Program, also known as the Certified Development Company Program, provides affordable long-term, fixed-rate small business loans to help healthy, expanding small businesses grow. Generally, Certified Development Companies (CDCs), are nonprofit corporations set up to contribute economic development in their local communities. CDCs work with the SBA and private sector lenders in a public-private partnership to provide financing to small businesses. How Is a 504 Different From a 7(a) Small Business Loan? A 504 small business loan is different from a 7(a) in that recipients of a 504 are required to: • Create or retain one job for every $50,000 provided by SBA (excludes Manufacturers) • Manufacturers must create or retain one job for every $100,000 provided by SBA • Proceeds must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improve improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment Uses of a 504 Small Business Loan • Acquiring long-term fixed assets, such as land, buildings, machinery and equipment, or • For building, modernizing, renovating or restoring facilities. Submitted by: Amy Woods, CTP Vice President Emerging Middle Market Division Fifth Third Bank 630.294.2109 (ph) 630.357.5380 (fax)