Compare SBA Loan Options | SouthState Small Business Lending | SouthState Bank

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South State Bank

Which SBA Loan Works For Your Small Business?

Whether your expanding or just starting out, SouthState offers flexible SBA Loan1 options to keep your business moving forward.

	SBA 7(a)	SBA 504
Structure	Varies – depending on the use of proceeds. 10% down payment generally required. Fully Amortizing.	50% 1^st Mortgage/Lien Bank Loan 40% 2^nd Mortgage/Lien SBA 504 Loan 10% Down Payment
Term	Up to 25 years. 25 years for Real Estate 10 years for Goodwill, Equipment, Working Capital in most cases. Term can be blended across several asset classes.	10 year balloon on bank 1^st Lien with an amortization schedule of up to 25 years. 25 years fully amortizing SBA 504 2^nd Lien.
Use of Proceeds	Acquire an existing business, including goodwill. Start a Business or Franchise. Purchase or Construct Commercial Real Estate. Refinance Existing Debt. Purchase Equipment and Machinery. Provide Working Capital. Construct Leasehold Improvements. Purchase Inventory.	Purchase or Construct Commercial Real Estate. Purchase or Improve Commercial Real Estate. Purchase Equipment. May only be used for fixed asset financing- Real Estate and Equipment/Machinery.
Program Requirements	51% Owner Occupancy of Commercial Real Estate. 80% Occupancy on new construction. Equipment is amortized over 10 years or its documented useful life.	51% Owner Occupancy. 80% Occupancy on new construction. Equipment financed for up to 10 years.
Collateral	1^st Lien on Subject Assets acquired/financed with loan proceeds. Personal Guarantees of 20% or more equity in the personal real estate. Life Insurance may be required.	1^st Lien on Subject Fixed Assets acquired/financed with loan proceeds. Personal Guarantees of 20% or more owners. Life Insurance may be required.
Fees	SBA Guaranty Fee – Averages 2.5%+/- of the loan amount. Self-Funding Program. Fees are financed in the loan.	2^%of the 2^nd Lien Amount – SBA Fee. Bank Fees Vary, 1% of the 1^st and 2^nd lien is typical. Fees can be financed in the loan.
Rates	May be fixed or variable.	1^st Lien Rates may be fixed or variable. 504 2^nd Lien offers a low fixed rate for up to 25 years.

Important Legal Disclosures and Information

All loans are subject to credit approval.