Have you been told you're not quite ready for a conventional bank or Small Business Administration 7(a) loan? We might have just the financing you need!
A Community Advantage loan is a Small Business Administration 7(a) loan that is financed by a mission-based lender, like Colorado Lending Source, rather than directly through a bank. It can offer financing from $50,000 to $250,000 for a variety of business needs.
ELIGIBLE USES
Qualified borrowers can use Community Advantage loan funds to finance:
- Startup expenses
- Long-term working capital
- Purchase equipment, inventory, furniture, and fixtures
- Business acquisition
- Buy, build or renovate commercial real estate
- Debt consolidation and refinance
- Include professional fees
REQUIREMENTS
Are you eligible to get a loan?
- The business is for-profit
- The business is located in the United States
- The business is valued at less than $15 million and the business has an after tax profit of less than $5 million a year over the average of two years
- The business owner will occupy 51% or more of commercial real estate that is being renovated or purchased
- The business has demonstrated need for credit
Preference will be given to applicants:
- Located in low-to-moderate income census tracts, empowerment zones, enterprise communities, or HUBZones
- Small businesses where more than 50% of the full-time work force is low income or resides in low-to-moderate income census tracts
- Small businesses that are new or less than two-years old
- Small businesses that are more than 50% owned by veterans, minorities, or women
- Small businesses located in rural communities
RATES & FEES
Interest rates:
Our Community Advantage loan program has an adjustable interest rate of Wall Street Journal Prime + 4.50%, with quarterly adjustments based on changes in the prime rate. A 9.25% starting interest rate is effective as of March 22, 2018 (4.75% prime rate + 4.50%). Please contact us for the current interest rate offered or for additional details.
Current Wall Street Journal Prime interest rate: 4.75%
Fees:
- Guarantee Fee of 2% on the guaranteed portion of loans $150,000 or less (through September 30, 2018, loans of $125,000 or less have an upfront guarantee fee of $0. This fee waiver may be extended beyond this date, at the SBA's discretion); Guarantee Fee of 3% on the guaranteed portion of loans $150,001 to $250,000
- Packaging Fee paid to Colorado Lending Source based on 2% of the loan amount or $2,500, whichever is lower
- Any direct or third-party closing costs associated with the loan
- Appraisal/valuation report costs, if required
- Environmental impact report costs, if required
- All fees can be financed as part of the loan
The Community Advantage loan program was the perfect fit for my client. He appreciated how I steered him to the right resource to get his financing needs met. I'm always confident that Colorado Lending Source handles my clients with the highest level of expertise and professionalism.
