SBA business loans provide long-term, fixed-rate financing to help US small businesses grow

The US Small Business Administration (SBA) is a federal government agency that supports entrepreneurs and small businesses just like you! It partners with various private sector organization, lenders, Certified Development Companies under strict guidelines that guarantee a large portion of the loan for lenders, making it easier for small businesses to access capital. And Royale Capital helps take care of the whole small business loans process for you.

SBA business loans are secure, fixed-rate, and long-term financing options designed to help small businesses succeed. They can be used for a variety of reasons like:

  • Expanding business operations
  • Buying real estate
  • Purchasing equipment or inventory
  • Refinancing business debt
  • Working Capital

Why work with Royale Capital?

  • We only deal with the nation’s top and highest-rated SBA lenders.
  • Our loan rates are well below market for the life of the loan.
  • We offer long-term loans of up to 10-25 years.
  • You can get loan of up to $5.5 million.
  • These loans have down payments as low as 10%
  • You can get flexible terms for eligible energy-efficient projects.
  • A perfect way to free up funds by consolidating debt.
  • Great for creditworthy businesses that can’t get a conventional loan.

How do you qualify for SBA business loans?

  • Operate a for-profit company registered in the United States.
  • Present a feasible and realistic business plan.
  • Occupy at minimum 51% of a building to be purchased or 60% of new construction.
  • Refrain from speculation or investing in real estate with these loan funds.
  • Demonstrate a tangible net worth of under $15 million and an average net income of under $5 million after taxes for the last two years.
  • Have no delinquencies in repaying any previous federal government debts.

SBA Business Loan programs

With four main loan programs to choose from, we will make sure your business is paired with the most appropriate funding vehicle with unbeatable rates and terms.

SBA 7(a) Loan Program

The 7(a) program can fund most legal businesses, up to $5 million, including:

  • Purchase and/or improve real estate.
  • Refinance existing business debt.
  • Purchase inventory or provide working capital.
  • Purchase a small business or franchise, or finance partner buyouts.

SBA 504 Loan Program

The 504 program helps fund long-term, fixed-asset loans up to $5.5 million, provided in conjunction with Certified Development Companies which are licensed by the SBA. Eligible projects include:

  • Purchase, construct or improve commercial real estate.
  • Does not take a lien on any outside collateral or a home.
  • Purchase long-term equipment.
  • Refinance existing debt involving new facilities or equipment.

What's the difference between 7a and 504 programs?

The main difference between these two SBA financing options is that the 504 loan is used mainly for purchasing or making improvement to a long-term fixed asset such as real estate or large machinery. It can provide up to $5.5 million for terms of 10, 20 or 25 years.

Whereas, the 7(a) loan can also be used for property and machinery purposes, but is mostly geared toward more general small business purposes, such as acquiring an existing business or franchise, improving inventory, providing working capital and refinancing debt, over mostly 10-year terms.


SBA CAPLines are designed to help small businesses manage cyclical cash flow needs through revolving lines of credit. Small businesses can utilize SBA CAPLines for short-term working capital for a variety of needs, including:

  • Acquiring inventory and processing larger orders.
  • Supporting payroll during seasonal revenue fluctuations.
  • Business expansion opportunity.
  • Lower pricing structure than asset-based or other financing options.

Benefits of SBA CAPLines

  • Up to $5 million in loans, for 12 months to 10 years.
  • CAPLines can be renewed any time during the maximum term period.
  • Interest-only loan payments.
  • Up to 80% of eligible accounts receivable.
  • Up to 50% of eligible inventory purchases.

Four Different Types of SBA CAPLines

(1) Contract CAPLine

Use of Proceeds: To finance the cost of one or more specific contracts, sub-contracts, or purchase orders, including overhead or general and administrative expenses, allocable to the specific contract(s).

(2) Seasonal CAPLine

Use of Proceeds: Must be used solely to finance the seasonal increases of accounts receivable and inventory (or, in some cases, associated increased labor costs). Funds cannot be used to maintain activity during slower periods of business cycle

(3) Builders CAPLine

Use of Proceeds: Borrowers must use the loan proceeds solely for direct expenses related to the construction and/or “substantial” renovation costs of a specific eligible project (residential or commercial buildings for resale), including labor, supplies, materials, equipment rental, direct fees like building permits and inspection fees, utility connections, construction of septic tanks, and landscaping. The cost of land may be eligible if it doesn’t exceed 20% of the project cost.

(4) Working Capital CAPLine

Use of Proceeds: For short-term working capital and operating needs.Proceeds must not be used to pay delinquent withholding taxes or similar trust funds (state sales taxes, etc.) or for floor planning.  

Collateral Requirements:

  • Working Capital CAPLine is secured with eligible trading assets found on the business and/or personal balance sheet.
  • Seasonal, Contract, and Builders CAPLines are secured with the assets associated with the creation of what will be by using these CAPLines.

SBA International Trade Loan (ITL)

The International Trade Loan (ITL) is designed to help small businesses enter and expand into international markets and, when adversely affected by import competition, make the investments necessary to better compete overseas. It offers a combination of fixed asset, working capital financing and debt refinancing.

Maximum Loan Amount

$5,000,000 in total financing.

Exporter Eligibility

To be eligible, your business must:

  • Be a for-profit business operating in the U.S.
  • Be a small business, as defined by the SBA.
  • Have, as a business owner, invested your own time and money into your business.
  • Applicants must also establish that the loan will allow the business to expand or develop an export market or, demonstrate that the business has been adversely affected by import competition and that the ITL will allow the business to improve its competitive position.

Foreign Buyer Eligibility

Foreign buyers must be located in those countries wherein the Export-Import Bank of the U.S. is not prohibited from providing financial assistance.

Use of Proceeds

  • For the facilities and equipment portion of the loan, proceeds may be used to acquire, construct, renovate, improve or expand these assets in the U.S. to produce goods or services involved in international trade.
  • Working capital is an allowable use of proceeds under the ITL.
  • Proceeds may be used for the refinancing of debt structured with unreasonable terms and conditions, including any debt that qualifies for refinancing under the standard SBA 7(a) Loan Program.

Collateral Requirements

  • Only collateral located in the U.S. (including its territories and possessions) is acceptable.
  • First lien on property or equipment financed by the ITL or on other assets of the business is required. However, an ITL can be secured by a second lien position if the SBA determines there is adequate assurance of loan payment.
  • Additional collateral, including personal guaranties and those assets not financed with ITL proceeds, may be required as appropriate.

Our Fee Structure

    We charge only one Firm Fixed Fee for Services Rendered. For SBA/USDA loans, we adhere to the SBA’s guidelines for Fees and execution of the Form 159.

    Our Fees         Loan Amount

    1.0%              <$1,000,000
    0.9%              $1,000,001 - $2,000,000
    0.8%              $2,000,001 - $3,000,000
    0.7%              $3,000,001 - $4,000,000
    0.6%              $4,000,001 - $5,000,000
    0.5%               >$5,000,001

    For government-guaranteed loans, there are guarantee fees ranging from 2-3.75% charged by the federal government. The government collects loan guaranty fees so entrepreneurs (not the United States taxpayers) bear much of the cost of funding and operating government-backed financial assistance programs.

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