SBA 7(A) Loan
For more information about SBA loans, please contact your local BancFirst.
SBA's 7(a) Loans feature long-term financing for most business purposes including the purchase of real estate, equipment, business acquisition, refinancing and working capital. Loans are made by BancFirst and a portion is guaranteed by the SBA.
Up to $5,000,000
Terms of loans are based on the use of proceeds:
- Working Capital - up to 7 years
- Machinery and Equipment - up to 10 years
- Real Estate - up to 15 years
BancFirst typically requires a first lien on the assets being acquired. If necessary, personal assets may be required as additional collateral.
Over 98% of all businesses are eligible. Primary requirements include:
- Retail - Less than $6 million in annual sales
- Wholesale - Less than 100 employees
- Manufacturing - Less than 500 employees
Interest rates are negotiable with BancFirst. SBA sets the maximum allowable rates based on loan maturities.
- Loans less than 7 years - Maximum Rate: Prime + 2.25%
- Loans 7 years and longer - Maximum Rate: Prime + 2.75%
SBA Guaranty fees are based on the amount of loan guaranteed.
- No guaranty fee for loans of $150,000 or less
- For loans of $150,001 to $700,000: 3% of the guaranteed portion
- For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000
Through December 2016, BancFirst will pay guaranty fees for Oklahoma businesses.
Although there is an SBA guaranty fee associated with SBA loans, a recent bill passed by the Oklahoma legislature allows businesses to recover this fee. Oklahoma small businesses can claim a state tax credit equal to the guaranty fee paid for their SBA guaranteed loan.
A tax credit is different from a tax deduction in that the full amount of the credit is subtracted from the final tax bill rather than just the taxable income of the business. In addition, the state tax credit can be carried over for up to five years, or until the credited amount is offset. Please consult your tax professional regarding tax deductibility or tax credits.
To begin the application process, please call (405) 270-4736 or (888) 313-2722.