Is the project located in a rural area?

Can SBA’s 7(A) guaranteed program handle the project instead?

Is the business eligible for the B & I program?

Will jobs be created or made more secure?

Special Requirements:

Business is majority-owned by US citizens or permanent residents.

No 20%+ owners are US government/military employees.

Project does not involve relocation of more than 50 employees.

If lender is refinancing their own debt, this purpose is less than half of the loan.

Adequate Collateral Test :  (Using current appraisal values).

Tangible Balance Sheet Equity Test :

(Using depreciated cost basis values).

(10% minimum for existing businesses; 20% minimum for new businesses).

Practical Considerations:

Environmental controversy (avoid floodplains & prime farmland).

Independent feasibility study (for start-ups, new locations, & businesses with recent losses).