About SBLS
Small Business Loan Source, LLC (SBLS) is a nationally licensed, direct SBA Non-Bank Lender; specializing in commercial real estate lending. We are based in Houston, TX, but are authorized to make loans nationally. As a non-bank, our sole business is funding and servicing SBA loans with our own capital. We are the lender - we are not brokers!
Our specialty is loans that include the construction, purchase or refinance of owner-occupied commercial real estate. Where the need exists, we can include funds for equipment, inventory and working capital. Our minimum loan amount is $150,000; our maximum $4,000,000.
Throughout the years our focus has been to streamline every aspect of our lending operations. We make the application process as painless as possible by proactively working with the borrower and offering the highest level of assistance available. We offer approvals within five business days and closings typically in 45 to 60 days. Since becoming a Preferred Lender in several SBA districts, we are now able to process your loan from application to closing in under 45 days.
Utilizing the SBA, we can include funds for equipment, inventory and working capital under the same loan as owner-occupied commercial real estate. Our loans are specifically designed for a variety of industries including:
Franchises Hotels & Motels Restaurants Convenience Stores Dry Cleaners Day Care Centers |
Car Washes Office Warehouses Bed & Breakfast Office Condos Funeral Homes Veterinary Facilities |
Assisted Living Facilities Auto Repair Shops Small Office Buildings Manufacturing Companies Health & Fitness Clubs Medical & Dental Professionals |
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History
SBLS was established in 1989 to help small businesses find long term financing. We began as a financial intermediary originating, packaging and underwriting SBA loans to be funded by third party lenders. In 1995 we teamed up with a private equity partner out of Boston and acquired a Small Business Loan Company (SBLC) license to become a nationwide non-bank lender. Our authority to make SBA loans is granted by a Charter from The United States Government and SBLS holds one of only fourteen such licenses in existence. This enabled us to become an SBA lender licensed to make loans in all fifty states. In 2002, we were the 20th largest originator of SBA 7(a) loans in the Unites States with over $100 million in loan approvals. In order for us to continue our growth, in September 2004, we were acquired by First Banks, Inc., one of the largest family-owned bank holding companies in the United States. This acquisition allowed us to achieve the following three benefits. First, we became recapitalized providing the capital needed to continue our growth. Second, we gained tremendous credit capacity allowing us to expand our products and services. Finally, we achieved corporate stability given that First Banks, Inc. is one of the largest privately-owned bank holding companies in the United States today and they are not for sale!
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Products
SBA 7(a) Program
SBLS offers financing under the Small Business Administration 7(a) loan program. Using this program, we are able to extend financing to eligible business with loans ranging from $150,000 up to $2,000,000. A key concept of the 7(a) guaranty loan program is that the loan actually comes from a commercial lender, not the government; the government simply guarantees a portion of the loan proceeds.
What Funds May be Used for:
Financing can be used for the purchase of owner-occupied commercial real estate including new construction, an existing building or modernizing a current facility. In addition, funds can be used to start-up a new business, expand existing operations, acquire an existing business or refinance outstanding debt. SBLS will include the purchase of inventory and equipment in your financing package. Eligible costs also include any costs related to the acquisition of a capital asset such as: architects, engineering, impact fees, installation, etc.
Eligible Businesses:
To be eligible, the business must be operated for profit and fall within the size standards set by the SBA. Eligible industries include, but are not limited to, Day Care Facilities, Office Warehouses, Office Condos, Medical, Dental and Professional, Small Office Buildings, Manufacturing, Car Washes, Funeral Homes, Restaurants, etc.
Real estate loans are intended for owner-occupied property. Proceeds cannot be used for businesses engaged in speculation or investment. Owner-occupied is defined as the business applicant occupying at least 51% of an existing facility or 60% of a newly constructed building.
Terms, Interest Rates & Fees:
Maturities of 7-years for working capital and up to 25-years for real estate and equipment are available. Maturities are based on the use of proceeds.
Interest rates on 7(a) loans will be based on the Wall Street Journal Prime Rate and adjusted calendar quarterly.
The SBA guarantee fee is a flat fee based on the total loan amount and calculated as a percentage of the guaranteed portion. Additional closing costs include legal fees, survey, title policy, EPA and appraisal. In some cases, some or all of these closing costs can be financed.
Collateral:
Generally, only the assets being financed are used as collateral. However, the SBA requires that all assets available to the business and its principals have been pledged in order for the loan to be “fully secured.”
Personal guarantees of all owners with 20% or more interest are required and full or limited guarantees of those owning less than 20% may be required.
Construction Lending
SBLS is the expert in SBA construction lending. We are one of the few non-bank lenders to take advantage of construction lending under the SBA loan programs. SBLS offers one loan for the purchase of real estate and construction of your building as well as financing for equipment, inventory and working capital. We structure our loan with an interim interest period, (up to 9 months) so that you’re only charged interest during the construction phase. Once the construction is complete, your loan automatically converts to a permanent mortgage with terms up to 25 years. SBLS can finance up to 90% of the total project costs.
What Funds May be Used for:
Financing can be used for the construction of a new owner-occupied building or the renovation of an existing building. Owner-occupied is defined as the business applicant occupying at least 60% of a newly constructed building. In addition, funds can be used expand existing businesses operations.
Eligible Properties:
To be eligible, the property must be owner-occupied and the business must be operated for profit and fall within the size standards set by the SBA. Loan proceeds cannot be used for businesses engaged in speculation or investment.
SBA 504 Loan Program
SBLS supports financing under the Small Business Administration 504 loan program. Typically, a 504 project includes a loan secured with a senior lien from a private lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC, 100 percent SBA-guaranteed, covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. Eligible businesses can receive financing up to $4,000,000 under this program.
What Funds May be Used For:
Financing can be used for fixed asset projects such as purchasing land and improvements, including new construction or existing buildings, modernizing or renovating existing facilities, or purchasing long-term machinery and equipment. The proceeds cannot be used for working capital, inventory, consolidating or repaying debt, or refinancing.
Terms Interest Rates:
Maturities of 10 years for equipment and 20 years for real estate and equipment are available.
Interest rates on 504 loans are loosely correlated to the 10-year U.S. Treasury issue.
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Services
Approvals:
Upon receipt of a complete SBLS loan package, SBLS can provide an applicant a conditional approval within five business days. Generally speaking, the required documentation for SBA lending is no more cumbersome than for a conventional loan when you have experts in SBA loan packaging and closing working for you. Our experienced staff will work to the best of our ability to expedite the entire loan process and make it as simple as possible. A complete loan package checklist is included in our application package found in our Forms section. However, we can often begin the loan process and possible issue a loan proposal with just the following information:
- Completed SBLS application forms.
- Existing businesses should provide tax returns for the past three years.
- Existing businesses should also provide a recent interim financial statement, no more than 60 days old.
- Start-up projects should provide a well thought-out business plan, as well as detailed financial projections. Projections should be month-by-month for the first two (2) years operations.
- Personal tax returns for the past three years for all shareholders of 20% or more of the applicant business.
Closings:
Each loan request is unique and may require additional information. Typically, we can help you close your loan within approximately 60 days.
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Referral Sources
Broker Referrals:
We accept and welcome loan referrals from outside sources. SBLS rewards good referrals and typically pays a set referral fee. Some relationships warrant a negotiated referral fee based upon the volume and quality of the loan packages submitted to SBLS. Please contact Kristin Welch at 1-866-362-SBLS to refer a loan or explore a referral partnership with SBLS.
SBLS Bank Alliance Program
As a non-bank, our sole business is funding and servicing SBA 7(a) loans with our own capital. Our authority to make SBA loans is granted by a charter from The United States Government and SBLS is one of only fourteen such institutions in existence.
One of our largest assets is the ability to partner with financial institutions in expanding their credit box and customer base by offering SBA financing. Since we are a non-bank, we do not require customers to keep their deposits with our institution. This allows banks to voluntarily offer SBLS loans to their existing customer base and new prospects without fear of losing customer deposit. Instead, the institution can expand their product offering and continue to lend to those customers without exceeding their legal lending limit.
As a transaction lender, SBLS benefits from partnering with financial institutions, by obtaining a reliable and intelligent source of SBA generated loans which allow us to grow our business. In return, the financial institution can retain all other fee generating services that they may have with a given customer and receive additional fee income through SBLS.
If you are interested in referring loans to SBLS through the Bank Alliance Program, please contact Kristin Welch at 1-866-362-SBLS or Kristin.welch@sbls.com.
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