Understanding the SBA Guarantee Programs.

SBA guarantee programs provide loan guarantees to lenders – not borrowers. The borrower applies to a lender or an SBA intermediary. Florida Fidelity Group Inc (FFG). A borrower must meet the underwriting guidelines for the appropriate program. FFG is offering loans under the SBA 7(a) and 504 programs.

All borrowers must be for-profit businesses that meet specific eligibility requirements.

The SBA programs prohibit the payment of front fees by lenders or intermediaries.

Any funds paid by borrowers are subsequent to loan approval by the lender. It is customary for a lender to request an SBA packaging fee once the loan has been approved. If the SBA does not approve the guarantee of the loan, the packaging fee is refunded.
The proceeds of the loan can be used for

• Working capital for business expansion.
• Acquisition of real estate for corporate use.
• Consolidation of corporate debt. (Debt must be current- no late payments for the last 36 months.)
• Change of ownership interests -buying out a partner.
• Purchase of fixed assets.

Loan Amounts and Terms.  

7(a) loans - $200,000 to $2,000,000* Up to 20 year term                                   
504 loans - $200,000  to $5,000,000* Up to 25 year term.

Loan amounts not to exceed 90% of total costs.
*Loan amounts may be increased under a bill presently being considered by Congress. Both 7(a) and 504 loans offer interest rates that are competitive with conventional loans offered by commercial banks.  In addition, these loans offer longer maturities.

The temporary waiver of SBA guarantee fees and the increase in the percentage of the SBA guarantee under the American Recovery Act makes these loans most attractive to a stable business seeking long term debt. There is no assurance that the waiver of fees, or the increase in the guarantee percentage will continue indefinitely.

FFG will assist in the qualification and application process.  There are NO up-front fees paid for this service.

When the loan has been approved by the lender there will be a charge for packaging the loan for SBA processing.

• Check eligibility requirements to see if your business qualifies for either the SBA 7(a) or the 504 program.
• Speak with a representative of FFG to confirm eligibility.
• Compile documentation as referenced in section "Required Documents."
• Request an appointment for document review by a representative of FFG.
• If your company does not qualify for SBA guarantee programs, but you would like to be considered for alternative loan program , speak with a representative of FFG.