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Small Business Loans

Small Business Administration (SBA) Loans

We are the small business loans experts and we prove it every day. The expertise and experience of our bankers have earned Bremer Bank the designation as a Preferred Lender by the SBA. That means credit decisions are made locally so you get the personalized service and expedited processing your deserve.
Benefits of Bremer SBA Loans include:
  • Flexible repayment terms
  • Lower down payments
  • Fast credit approval
  • No balloon payment
  • Multiple interest rate options

 

 
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SBA 7(a) Term Loan

SBAExpress

SBA 504 Term Loan

Eligibility
  • For-profit businesses
  • Small business qualification by SBA guidelines
  • Size varies by industry type
  • Same as 7(a) Term Loan
  • Existing, for-profit businesses
  • Net worth $7MM or less
  • Net profits after taxes $2.5MM or less
  • One job created for every $50,000 in SBA loan funds
Loan Size
  • SBA loan guarantee cannot exceed $3,750,000
  • Loan ceiling of $5,000,000
  • From $100,000 to $350,000
  • From $150,000 to $8,000,000
  • Maximum SBA loan $5,000,000 for job creation/community development goals, or public policy goals, or eligible manufacturers
Use of Proceeds
  • Land
  • Buildings
  • Machinery and Equipment
  • Purchase Business
  • Inventory
  • Working Capital
  • Same as 7(a)Term Loan
  • Land
  • Buildings (new purchase, new construction or renovation)
  • Machinery and Equipment (minimum useful life of 10 years)
Financing
  • Provided by Bremer
  • SBA provides 85% guarantee to Bremer on loan amounts of $150,000 or less; 75% guarantee on loan amounts of $150,000 or more
  • Provided by Bremer
  • SBA provides 50% guarantee
  • 50% financed by Bremer
  • 40% SBA loan through Certified Development Co.
  • 10% borrower injection (increased injection required on new businesses or special-purpose real estate)
Collateral
  • SBA requires Bremer to take a secured interest in business assets and/or a mortgage on real estate
  • Same as 7(a)
    Term Loan
  • Bremer holds first mortgage on real estate, and/or secured interest in equipment and machinery.
  • SBA holds second mortgage on real estate, or second secured interest in equipment and machinery
Underwriting Requirements
  • Personal guaranties by all owners of 20% or more
  • Adequate business collateral or personal assets securing personal guaranty (example: mortgage on home)
  • Hazard Insurance
  • Same as 7(a)Term Loan
  • Personal guaranties by all owners of 20% or more
  • Life insurance on business principals in amount of SBA loan
  • Hazard Insurance
Loan Terms
  • Working Capital (up to 10 years)
  • Equipment (up to 10 years or useful life)
  • Real Estate (up to 25 years)
  • Revolving line of credit (up to   3 years)
  • Bremer loan - minimum 10 years on Real Estate; 7 years on Machinery and Equipment
  • SBA loan - 20 years
Interest Rates
  • Variable rates based on WSJ Prime
  • Variable rates based on WSJ Prime
  • Bremer loan - negotiated rate between borrower and Bank(fixed or variable)
  • SBA loan - below market fixed interest payment, loan rate set when debenture is sold