For Lenders
Finding solutions to meet your customers’ needs can be difficult. Partnering with Wakarusa Valley Development makes it easier. Certified by the U.S. Small Business Administration, Wakarusa Valley Development helps lenders provide small business loans for a variety of business needs. Whether it’s for a commercial real estate purchase under the 504 Certified Development Company (CDC) Loan Program or working capital with the 7(a) Loan Guaranty Program, our staff can help you build a stronger relationship with your customer by providing you the benefits of an SBA guaranteed loan.
SBA 504 Loan Program
Together, your bank and Wakarusa Valley Development can provide funds for up to 90% of commercial real estate and large equipment project costs.
Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50% of the project cost, a loan secured with a junior lien from the CDC (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the small business being helped.
A 504 Loan allows your bank to offer complete financing for your customers, while maintaining a 50% loan-to-value and preserving your customer’s working capital for future growth with the lower down payment.
Wakarusa Valley Development’s staff works directly with the SBA to approve the 504 Loan. We prepare all required forms, close and provide all necessary servicing during the entirety of the SBA loan.
Rely on our expertise to guide you and your customers through the 504 Loan Program.
SBA 7(a) Loan Program
The 7(a) Loan Program provides the most basic and flexible loan of all SBA loan programs because it can be used for a variety of small business needs. Your bank sets the terms and conditions of the loan and we focus on obtaining the guaranty.
A 7(a) Loan Guaranty may allow you to provide financing to a customer that before did not meet the lending policies of your bank. For example, a small business may need a working capital loan with a loan term longer than your bank will allow or the business may be a start-up and repayment is based solely on projections. With a 7(a) Loan these challenges can be solved.
Guaranty percentages are based on the loan amount. The SBA will guarantee up to 85% of a loan for $150,000 or less and up to 75% of a loan greater than $150,000.
Wakarusa Valley Development will prepare all documents and package the loan guaranty application on behalf of your bank and customer and work directly with the SBA through the approval process. Once approved, the participating lender will close, disperse and service the loan.
Our experience and knowledge of up-to-date SBA requirements will help you meet the needs of your customer quickly and enhance your lending possibilities.
Let us do the work for you.
For Small Business
Whether you want to purchase or construct a commercial building, buy equipment or need working capital for your business Wakarusa Valley Development will help you find a solution.
Certified by the U.S. Small Business Administration, Wakarusa Valley Development partners with your lender of choice to meet your financing needs through two SBA loan programs.
SBA 504 Loan Program
The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land, buildings and large equipment.
With this program, Wakarusa Valley Development works with your lender of choice to provide financing. Typically, your lender will provide a loan up to 50% of the total project cost, Wakarusa Valley Development will provide up to 40% and a contribution of at least 10% must come from you. Our portion offers a low, fixed-rate for up to 20 years. You benefit because the blended interest rate is less than conventional financing and you preserve working capital for future growth with the low down payment.
Learn more about the 504 Program.
SBA 7(a) Loan Program
A 7(a) Loan can be used for a variety of your small business needs. Loan proceeds can be used for working capital, equipment purchases, refinance of eligible existing debt and more. With a 7(a) Loan, Wakarusa Valley Development will work with the lender of your choice to prepare all documents and package the loan guaranty application. Once the application is approved, your lender will close, disperse and service the loan.
Find out more.
