SBA Loans

We help small businesses thrive.

ACU specializes in meeting the unique borrowing needs of small businesses. This includes partnering with the U.S. Small Business Administration (SBA) to help you secure timely, affordable financing options.

Our dedicated small business team will lead you step-by-step through the SBA application process and help you take full advantage of everything the program offers. Since the agency’s mission is to support small business owners and entrepreneurs, SBA loans are ideal for startups and other businesses with limited lending history. The SBA also provides free on-site or online counseling for startups, and low-cost training for entrepreneurs and established small businesses.

SBA loans can help you:

  • Purchase or upgrade land or real estate to operate your business.
  • Build a business facility or make tenant improvements on a leased property.
  • Purchase inventory as well as fixed assets such as heavy machinery and specialized equipment.
  • Obtain working capital.
  • Refinance debt.
  • Purchase an existing business, franchise, or startup with lower collateral requirements than conventional loans.

The benefits of securing an SBA loan include:

  • Loan maturities of 7-25 years, which are longer than conventional bank loans.
  • Competitive rates and fees.
  • Smaller down payment requirements.
  • Less demanding collateral requirements.
  • Greater repayment flexibility including no balloon payments and no pre-payment penalties for loans with less than a 15-year maturity.
  • Loan guarantees of 75% to 85% depending on the loan amount.

How to Apply for an SBA Loan

ACU members can work directly with our SBA loan department to complete your loan application. Please contact ACU to make an appointment to meet at your local branch or at your office to discuss your business loan needs. For our first meeting, please bring the following information:

  • The amount you want to borrow (up to $5 million) and an explanation of how you will use the money.
  • Business tax returns, with all schedules, for the past three years.
  • A business financial statement that is not more than 90 days old.
  • Business financial statements for the prior three years, if available.
  • An accounts receivable aging report of the same date or later as the current financial statement.
  • A detailed list of all company term debt and lines of credit of the same date as the current financial statement.
  • Personal tax returns, with all schedules, for the prior three years.
  • Current personal financial statement.
  • For new businesses only: a detailed one-year business plan with cash flow projection.

Once we have a meeting and collect the necessary documentation, we will respond to your loan request within several days. If your loan is approved, we will complete all the paperwork in our branch office.

SBA 504 Loans

SBA 504 loans are designed to finance fixed assets for small businesses at competitive or below market rates and terms. Maximum loan amounts range from $5 million to $5.5 million depending on the type of business or project, and provide permanent or take-out financing.

The program works by distributing the loan amount among three parties: the business owner borrowing the money, a conventional lender such as ACU, and a Certified Development Company (CDC) that provides interim financing to cover the period between SBA approval of the project and the debenture sale. After the project is completed, the 504 loan is closed and the proceeds from the debenture sale repay the CDC for the amount of the project costs it advanced.

With 504 loans, the cash flow of the small business applicant is the primary source of repayment, not the liquidation of collateral. The following conditions also apply:

  • The borrower must cover at least 10% of the project cost; new businesses must cover at least 15%.
  • Businesses with a limited or special purpose property must cover 15% of the cost.
  • If a project finances both a new business and a limited or special purpose property, the applicant is required to cover 20% of the project cost.
  • The borrower’s equity in previously acquired land may be counted toward the borrower’s contribution to the project’s cost.
  • The borrower may use equity in land and buildings as part of their project contribution if they are adding a new building to the same property.

Contact our SBA Loan Department

For more information or to begin the loan request process, visit your local branch or contact our SBA experts at:

Other useful resources include: