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SBA 7(a) Loan Program
Bank of Oklahoma currently offers loans through the following SBA programs - SBA 7(a) and SBA 504. For each type of loan, our bank and the SBA look for these credit criteria: Experience of owners, ability of business to repay debt from earnings, adequate equity capital, collateral value, and personal guarantee of owners.
Benefits to Borrower:
- Because of longer terms, debt service requirements are reduced
- Every loan is fully amortized during the term of the loan
- Some loans may be prepaid without penalty (certain conditions apply)
Purposes of Loan
Term loans may be used for a variety of purposes including:
- Working capital
- Permanent inventory purchase
- Machinery and equipment acquisition
- Construction or improvement of real property
- Real estate acquisition (owner occupied)
Eligible Borrowers*
Most businesses will qualify if annual sales are $50,000 to $22 million or the business employs 1500 or fewer.
Loan Amount
We will consider loans up to $2,000,000; however, the amount of the SBA guarantee to the bank will not exceed $1,500,000.
- SBA will guarantee up to 85% on loans of $150,000 or less
- SBA will guarantee up to 75% on loans exceeding $150,000
Term of Loan
The term of the loan depends upon the purpose of the loan:
| Working Capital | 5 to 7 years |
| Machinery and equipment | up to 15 years |
| Commercial construction | up to 25 years |
| Real estate acquisition | up to 25 years |
| (owner occupied) |
Rate of Interest
Both variable- and fixed-rate loans are available. The rate of interest depends on the term of the loan:
Maturity less than 7 years - Up to the lowest Wall Street Journal prime rate + 2.25% floating
Maturity over 7 years - Up to the lowest Wall Street Journal prime rate + 2.75%
Also, the SBA requires a 2% guaranty fee on loans up to $150,000; 3% on loans from $150,000 to $700,000; 3.5% on loans over $700,000. Fees based on guaranteed portion of the loan.
*Nonprofit organizations and speculative ventures including developer-landlord transactions are ineligible to borrow under the SBA 7(a) and SBA 504 loan programs.
Equal Opportunity Lender
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