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SBA and USDA Loans

SBA AND USDA LOANS

The Government insured loan programs have very specific guidelines that must be followed. WNC acts as a “marketing and packaging partner” for a number of “SBA Preferred Lenders” that have the ability to underwrite loans in house.

SBA 7(a ) Loans
Transaction Guidelines

Minimum Loan Amount Varies by Lender but few lenders will entertain loans under $100,000
Maximum Loan Amount: $5,000,000
Acceptable Loan Purposes: Purchase new property including construction costs
Repairs/Renovations to existing facilities
Purchase or expand an existing business
Refinance existing debt (Limitations exist)
Purchase equipment, machinery, furniture, fixtures, supplies, or materials
Working Capital
Minimum Equity Injection: Minimum of 10% but generally 20% ( Up to the discretion of the lender)
Minimum Debt Service Coverage 1.25/1
Maximum Business Size Business net worth cannot exceed $15 million
Personal Guarantee’s: Required on every owner of 10% or greater or owners of less than 10% with significant operating role
Minimum Credit Scores of Guarantors: Varies by Lender but above 640
Related Management Experience: Required
Interest Rate Structures: Can be fixed but usually quarterly adjustable tied to WSJ Prime.
Amortization Period: Up to 25 years based on the loan purpose
Other Restrictions
Time to Close: 45-90 days

SBA 504 Loans
Transaction Guidelines

Minimum Loan Amount Varies by Lender but few Lenders will entertain loans under $100,000
Maximum Loan Amount: $5,000,000
Acceptable Loan Purposes: Purchase of real estate and facilities
Construction of new facility including soft costs
Refinance of existing debt
Purchase of furniture, equipment and machinery
Purchase of a business
Renovation of facilities including soft costs
Minimum Equity Injection: Minimum of 10% ( Up to the discretion of the lender)
Minimum Debt Service Coverage 1.25/1
Maximum Business Size Business net worth cannot exceed $15 million
Personal Guarantee’s: Required on every owner of 10% or greater or owners of less than 10% with significant operating role
Minimum Credit Scores of Guarantors: Varies by Lender but above 640 unless smaller loan/then possibly down to 620
Related Management Experience: Required
Interest Rate Structures: Fixed rate loan
Amortization Period: Up to 25 years
Other Restrictions
Time to Close: 45-90 days

USDA Business and Industrial Loans
Transaction Guidelines

Minimum Loan Amount $1,000,000
Maximum Loan Amount: $20,000,000
Acceptable Loan Purposes: Business conversion enlargement, repair, modernization, or development
Purchase and development of land, easements, rights-of-way, buildings or facilities
Purchase of equipment, leasehold improvements, machinery, supplies or inventory
Debt refinancing when refinancing improves cash flow and creates or saves jobs
Business and industrial acquisitions when the loan will create or save jobs
Minimum Equity Injection: 20% for real estate 30% for equipment 40% for inventory and accounts receivable
Minimum Debt Service Coverage
Borrower Entity Type: “For profit” entities,  “Nonprofits Corporations”, Individuals
Maximum Business Size No maximum
Personal Guarante’s: Required on every owner of 20% or greater or owners of less than 20% with significant operating role
Minimum Credit Scores of Guarantors: Must have “good credit” (Lender has some discretion but generally 680 or above)
Related Management Experience: Required
Interest Rate Structures: May be fixed or quarterly adjustable
Amortization Period: Up to 30 years for real estate Up to 15 years for machinery and equipment Up to 7 years for working capital (Must be fully amortizing)
Other Restrictions Must be in a rural area based on zip code ( Populations of less than 50,000 and urban areas)
Time to Close: 60-90 days

Our Process

The process is dependent upon the lender but it will generally follows the process below:

Initial Contact/Referral of Transaction– Whether we are contacted by the applicant or through a referral partner, we require an initial call with the prospective applicant to better understand the transaction. When a referral partner is involved, we keep the referral partner abreast of the status but we need to work directly with the applicant.

Eligibility Determination– One we obtain the Registration, we determine what initial documents are required for eligibility determination and submit Eligibility Determination Request Form with those documents  to our lenders for them to determine if they will entertain an application and the general terms they would offer.

Indication of Interest/ Execution of Fee Agreement– Once we have received an agreement from one or more lenders to accept the application and an estimate of terms, we send out a written Indication of Interest along with our Fee Agreement for acceptance and execution by the applicant. Please note the fees earned by WNC are paid at closing.

Document Checklist– Once we have received the executed Fee Agreement, we will send the applicant a Documentation Checklist and any lender or loan specific forms which will outline what is needed to submit the loan application for approval. In some cases we will submit the application to multiple Lenders for approval.

Conditional Approval/Terms Sheet– Most Lenders will issue a Conditional Approval with terms or a Terms Sheet. The applicant will be required to “Accept” the terms and most lenders then require payment of the fee for the Property Appraisal. The cost of this appraisal will vary based on the property.

Clear to Close/Closing of Loan – Once all conditions have been cleared including a satisfactory appraisal, the loan is then scheduled to close. Each lender is different but at some point, each Lender will take charge of the loan and communicate directly with the applicant.

(WNC and its referral partners are paid for our services by the lenders)

Our Process

The process is dependent upon the lender but it will generally follow the process below:

Initial Contact/Referral of Transaction– Whether we are contacted by the applicant or through a referral partner, we require an initial call with the prospective applicant to better understand the transaction. When a referral partner is involved, we keep the referral partner abreast of the status but we need to work directly with the applicant.

Eligibility Determination– One we obtain the Registration, we determine what initial documents are required for eligibility determination and submit Eligibility Determination Request Form with those documents  to our lenders for them to determine if they will entertain an application and the general terms they would offer.

Indication of Interest/ Execution of Fee Agreement– Once we have received an agreement from one or more lenders to accept the application and an estimate of terms, we send out a written Indication of Interest along with our Fee Agreement for acceptance and execution by the applicant. Please note the fees earned by WNC are paid at closing.

Document Checklist– Once we have received the executed Fee Agreement, we will send the applicant a Documentation Checklist and any lender or loan specific forms which will outline what is needed to submit the loan application for approval. In some cases we will submit the application to multiple lenders for approval.

Conditional Approval/Terms Sheet– Most Lenders will issue a Conditional Approval with terms or a Terms Sheet. The applicant will be required to “Accept” the terms and most lenders then require payment of the fee for the Property Appraisal. The cost of this Appraisal will vary based on the property.

Clear to Close/Closing of Loan – Once all conditions have been cleared including a satisfactory appraisal, the loan is then scheduled to close. Each lender is different but at some point, each lender will take charge of the loan and communicate directly with the applicant.

(WNC and its referral partners are paid for our services by the lenders)

Our Process

The process is dependent upon the lender but it will generally follow the process below:

Eligibility of Location-We must first determine that the location of the business is on an area that qualifies for USDA financing. This is a 5 minute process.

Initial Contact/Referral of Transaction– Whether we are contacted by the applicant or through a referral partner, we require an initial call with the prospective applicant to better understand the transaction. When a referral partner is involved, we keep the referral partner abreast of the status but we need to work directly with the applicant.

Eligibility Determination– One we obtain the Registration, we determine what initial documents are required for eligibility determination and submit Eligibility Determination Request Form with those documents  to our lenders for them to determine if they will entertain an application and the general terms they would offer.

Indication of Interest/ Once we have received an agreement from one or more lenders to accept the application and an estimate of terms, we send out a written Indication of Interest  for acceptance and execution by the applicant.

Document Checklist– Once we have received the executed Fee Agreement, we will send the applicant a Documentation Checklist and any lender or loan specific forms which will outline what is needed to submit the loan application for approval. In some cases we will submit the application to multiple lenders for approval.

Conditional Approval/Terms Sheet– Most lenders will issue a Conditional Approval with terms or a Terms Sheet. The applicant will be required to “Accept” the terms and most lenders then require payment of the fee for the Property Appraisal. The cost of this appraisal will vary based on the property.

Clear to Close/Closing of Loan – Once all conditions have been cleared including a satisfactory appraisal, the loan is then scheduled to close. Each Lender is different but at some point, each lender will take charge of the loan and communicate directly with the applicant.

(WNC and its referral partners are paid for our services by the Lenders)

Getting Started

If you are interested in obtaining an SBA 7(a) Loan, we recommend that you click below and complete a Loan Registration Form, scheduling a call to discuss your loan request.

Getting Started

If you are interested in obtaining an SBA 504 Loan, we recommend that you click below and complete a Loan Registration Form, scheduling a call to discuss your loan request.

Getting Started

If you are interested in obtaining a USDA B&I Loan, we recommend that you click below and complete a Loan Registration Form, scheduling a call to discuss your loan request.

The questions contained in this document are meant to provide World Net Capital 1 (WNC) with information on your interest in SBA and USDA WNC offers.

Request for Information on SBA and USDA Loans

General Information






Business Loan Interest





Call Setup



If you would like to become a Referral Partner, just click below and learn about the program.