Financial Advice

Understand Your Credit


UFCU Now Offers Business Loans

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UFCU is proud to announce that we now offer business loans supported by the Small Business Administration (SBA). Mark Hodges, SBA Specialist for Commercial Lending, recently joined the UFCU team to manage the SBA Lending Group. Mark brings a wealth of knowledge to UFCU with over 20 years of banking experience, 15 years specializing in SBA lending.

The SBA was created in 1953 as an independent agency of the federal government to help small businesses obtain debt capital by providing an additional governmental guaranty for the lender. We offer two types of SBA loans: 7A and 504. And we’re proud to be an SBA preferred lender. That means we can approve and fund SBA loans more quickly than lenders without this designation.

As a business owner, you can take advantage of the 7A loan program for financing most general business needs, including inventory, equipment, accounts receivable, working capital, business acquisition, and real estate. And the 504 loan program is available to you when you need financing specific to real estate acquisition and/or construction, along with long-term equipment financing.

If you’re interested in an SBA loan or learning more, contact Business Lending at (512) 997-2352 or (800) 252-8311.

What are the Benefits of an SBA Loan?

  • Longer maturities than conventional loans
  • Improved cash flow
  • Competitive interest rates
  • Reduced down payments with higher loan to value
  • Options for rolling in loan fees

Who Can Qualify?
Many successful businesses have benefitted from an SBA loan. They are not simply loans of last resort. Restrictions as to who can qualify are based on number of employees or gross revenue, depending on your industry code.

If your business is classified with a Wholesale or Manufacturing industry code, you can qualify for an SBA loan if you meet the following criteria:

  • Wholesale Sector (No more than 100 employees)
  • Manufacturing (No more than 500 employees)

If your business is classified with a Construction or Retail/Service industry code, you can qualify for an SBA loan if you meet the following criteria:

  • Construction Sector Average (3 year) annual sales of not more than $28 million
  • Retail/Service Average (3 year) annual sales of not more than $29

Do SBA loans require large amounts of documentation?
No. SBA loans require the same documentation as conventional loans.

Do SBA loans require more time to close than conventional loans?
No. SBA loans can take as little as 30-45 days to close, depending on the loan purpose and timeliness in gathering information.

Are SBA loans only right for small sole-proprietorship type businesses?
No. Corporations, partnerships, and limited liability companies (LLCs) are eligible. SBA loan amounts can be up to $5 million.

Next Steps
It’s simple to get started. Just think about what you’d like to accomplish and gather some basic information about your small business:

  • Decide what your goals and objectives are for your business.
  • Find a lender that will listen to you, consider your specific needs, and become an advocate for your company.
  • Organize your financial statements (typically for the previous three years) and be ready to share the information and discuss your goals.

The Credit Union Difference
As a credit union, UFCU is uniquely positioned to understand the special needs and circumstances of privately held businesses. And our mission to serve the well-being of our Members and give back to the communities we serve translates to our genuine interest in the success of your small business.