SBA 7(a) Loans for Convenience Stores
Embassy National Bank provides the expertise you need for all your financing needs. Financing for convenience stores is available in several forms.
Whether you are purchasing a store you currently lease, purchasing a new one, or renovating your current store, apply for an SBA 7(a) loan. Payments are made the same way traditional loan payments are, combining principal and interest. Embassy National Bank evaluates applicants based on credentials that include:
- Equity investment, minimum of 20%
- Cash flows
- Debt obligations
- Personal Credit and Experience
Typical interest rates for SBA 7(a) loans usually range from 5.25% to 6.50%, but this varies based on the above credentials. SBA approved financial institutions are subject to the requirements of the SBA, so interest rates will never exceed the maximums of the Small Business Administration.
Benefits of SBA-7a Loans
SBA 7(a) loan repayment periods are longer and require lower down payments than most traditional loans. The SBA 7(a) maximum loan amount is $5 million and allows:
- Up to 25 years for real estate repayment
- 10 years for equipment repayment
- 7 years for working capital repayment
However, the single largest benefit is that the loan, as long as it performs as intended, cannot be called prior to maturity, eliminating a major refinancing risk to the customer.
What SBA 7(a) Loans Can Be Used For
SBA loans available through Embassy National Bank are customized to give small businesses access to credit and provide solutions for a wide variety of convenience store needs.