Why SBFC Is The Smart Money Source


Since 1981, SBFC has been part of more than $1.5 billion in Arizona capital investment that helped create over 7,000 new jobs.

To qualify for an SBFC 504 loan, a business should meet the following loan criteria.

     Loan criteria for the borrower:

  • Should be profitable and demonstrate repayment ability, or show reasonable cash flow projections.
  • Should show a tangible net worth of no more than $15 million, with net profit after taxes averaged for the previous two years of $5 million or less, or meet industry specific employee and revenue guidelines.
  • Cannot be speculative, non-profit, a private/restrictive club or financial/ investment institution.

     Building financing:

  • Buy existing or leased buildings; renovate or construct new buildings.
  • The amount financed includes points, fees and all direct building expenses.
  • SBFC loans are fixed interest for the entire 20 years (the bank loan maturity is at least 10 years).
  • The bank (first) finances 50%, SBFC finances 40% (second) and you only need 10% equity.
  • Loan limits may be applied based on the cost-appraisal ratio; franchise fees cannot be financed and certain other costs may be ineligible.

     Equipment financing:

  • Purchase new, used or leased (operating leases) equipment.
  • The financed amount includes delivery and installation.
  • SBFC loans are fixed interest for the entire 10 years (the bank loan is at least 7 years).
  • The bank (first) finances 50%, SBFC finances 40% (second) and you only need 10% equity.
  • Useful asset life must be 10 years or more. Short term assets such as furniture and furnishings cannot be financed.
  • Automobiles, trucks and airplanes cannot be financed. Construction equipment can be financed by contractors only.

Low Cost

The SBFC 504 program loan rate follows the 10 Year Treasury (bill) Market Rate and may be lower than most banks' best rate. Plus, the rate is fixed for the full term of the loan. The low, fixed rate can mean big savings in a changing economy where variable bank rates can escalate and quickly erode the profit margin of a small business.

Quick Turn Around

The locally owned and managed SBFC is one of less than 30 SBA Premier Certified Lender companies in the country so your loan can be approved in a few days. That means you can get the financing you need, when you need it, to take advantage of lending rates and business opportunities. In fact, SBFC's Premier Certified Lender status makes the loan turn-around time comparable to all other lending options for small businesses.