PROAMÉRICA BANK represents community banking in the truest sense. As an independent, locally owned and operated commercial bank, we are dedicated to providing the ultimate in personal service. We offer all of the current Small Business Administration (SBA) loan programs that are available to the small business owner as well as loan programs guaranteed by the State of California.
The 7(a) Loan Guaranty Program is the SBA’s primary business loan program. Special programs have been designed within the 7(a) program to meet the specific financing needs of small businesses.
Use of Proceeds - An eligible business may use the proceeds of a SBA guaranteed loan for:
- Real Estate acquisition, refinance, construction or conversion/expansion/ renovation of - existing facilities including fixtures and leasehold improvements;
- Machinery/equipment purchase;
- Business acquisitions;
- Capital injection (working capital);
- Debt consolidation/restructuring (including payables)
Loan Maturities - SBA established maximum loan maturities are based on the use of proceeds. Maturities for loans with multiple purposes are determined on a pro-rata basis, depending on the various basic SBA maturities involved. Basic maturities are:Working capital classifications..............up to 10 years.
Machinery/equipment acquisition........up to 15 years
or the economic life (as established by the company’s CPA),
whichever is less.
Business acquisition...........................up to 10 years.
Leasehold improvements.....................up to 10 years.
Real Estate related transaction............up to 25 years.
This program is specially designed for the purchase of fixed assets at
lower down payments and lower interest rates. Typically, the Bank makes
a senior lien real estate loan for 50% of the purchase price, while a Community
Development Corporation (backed by the SBA) covers up to 40% of the purchase
price with a junior lien facility.
- Purpose: Fixed assets only - no working capital
Loan Amount: Usually up to $2,000,000; however, the total project can be as much as $6,000,000.
Maturity: 10 or 20 years
- Interest Rate: Lower than for conventional loans
Collateral: Real Estate and/or Equipment
Benefits of this Program:
* Down payment as low as 10% of the cost
* Lower interest rates.
* Longer Terms
STATE OF CALIFORNIA GUARANTY PROGRAM
Sometimes an SBA Loan may not be the best form of financing for a small business, so we are able to offer an alternative program through the State of California. Special emphasis is placed on the creation and retention of jobs.
Funds can be used for any of the following;Accounts receivable
Lines of credit
Proceeds must be used for small businesses located in the State of California. Borrower must show repayment ability.
Maximum Loan Amount can be as much as $500,000 for each borrower with a maximum term of 7 years
Available business and personal assets (machinery, equipment, accounts receivable, inventory and real property).
With a streamlined process, personalized service and competitive terms, you’ll discover that working with PROAMÉRICA BANK will make a noticeable difference in achieving your business goals. Whether you’re ready to expand your business, purchase commercial real estate, new equipment, increase inventory, or make other improvements, it takes a special kind of bank to focus only on the clients’ needs. At PROAMÉRICA BANK, we understand the needs of our business clients. In a world of mega banks and mergers where you’re only a number, we provide the personal attention, respect and responsiveness you deserve. At PROAMÉRICA BANK, we believe that to serve you is a privilege that we earn one customer at a time. With the best people in the business ready to serve you, we make it our business to meet your individual financing needs. With PROAMÉRICA BANK as your lending partner, you will find a lender who wants to be a partner in your success. With an unwavering commitment to excellence, you’ll like the difference at PROAMÉRICA BANK.
Business customers are eligible for a 0.50% Annual Percentage Yield for five months. Minimum of $10,000 to open CD. Rate effective August 25, 2011, and it is subject to change. Client must open a new business checking account of $10,000 concurrently to qualify for rate. (New Money only)