SBA (7a) COVID Rebound - Lines of Credit Program Overview

This program features an accelerated turnaround time for a government guaranteed loan.
Applications close September 27, 2021.

Benefits to Borrowers:

• Fast turnaround time/Streamlined processing
• Easy-to-use lines of credit /Low, competitive interest rates
• Start-up businesses eligible /In-house underwriting
• Stated income/Stated Debt (Loans $100,000 or less) through 9/30/2021
• SBA pays guarantee fees and makes first 3 months of P&I payments on all new loans through 9/30/21 (subject to SBA fund availability)

Maximum Loan Amount:		$25,000 – Unsecured | $350,000 – Secured
		$350,001 - $5,000,000  - Secured -SBA CAP Line Program
Packaging Fees:		$250 – Loans up to $25,000
		$350 – Loans $25,001 - $50,000
		$450 – Loans $50,001 - $100,000
		$650 – Loans $100,001 - $350,000
		$750 – Loans $350,001 - $700,000 – SBA CAP Line Program
		$2,500 – Loans $701,000-$5,000,000 -SBA CAP Line Program

No annual fees or SBA Guarantee Fees

Term:		5 years
Rates:		$100,000 or less 2.0% fixed (APR 2.033%) first 12 months, then WSJP +1.25% -SBA Express
		$101,000-$350,000 2.5% fixed (APR 2.538% based on max $350,000) first 12 months, then WSJP +1.5% -SBA Express
		$350,001-$5,000,000 1.75% fixed (APR 1.776% based on max $5,000,000 balance) first 12 months, then WSJP + 1% - SBA CAP Line Program
Eligibility:		Must be a for-profit business and meet SBA size standards, Show good character, credit, management and ability to repay, Must be an eligible business type .

Program Summary Disclaimer Statement: This form is for informational purposes only, all terms and rates are subject to approval from First Southwest Bank and/or First Southwest Community Fund and the enhanced lending entity based on program funding availability and the applicant’s credit history and ability to repay. Additional standard closing costs may apply. Items listed below “Benefits to Borrower” are comparative between the subject enhanced loan program and a traditional commercial loan. WSJP is Wall Street Journal’s Prime Rate. APR”s are an estimate only based on the maximum amounts shown and associated packaging fees.

For more information, please email allspeciallending@fswb.com and click here to apply.

New! USDA Business & Industry (B&I) CARES ACT Loan

Benefits to Borrowers:

• Fixed Rates of 6.75% up to 5 years and 8.5% up to 10 years (max term)
• Fixed maturity, no balloon payments, fully amortizing principal & interest payments
• Start-ups and Agriculture Producers are eligible

Maximum Loan Amount:

• Maximum B&I Cares loan = 12 x (Borrower’s total average monthly costs or W/C expenses)
• This amount will be reduced by any SBA Paycheck Protection Program loans received by borrower or other Federal assistance for economic recovery due to the pandemic impacts
• Maximum loan may not exceed the traditional $25 Million threshold to one borrower
• Example: Borrower has monthly operating costs of $100,000. They have received a $250,000 SBA PPP loan. They would be eligible for a $950,000 B&I Cares Act Program loan - $100,000 x 12 = $1,200,000 - $250,000 = $950,000

Percent of Guarantee: 90%

Use of Proceeds:

• Payroll costs, healthcare benefits, salaries
• Principal and interest payments on loans and/or loan costs
• Rent/leases obligations, utilities, inventory & supplies
• Operating costs such as Insurance and marketing or to pay taxes.

Maximum Term: 10 years

Guarantee Fees: 2% of guaranteed loan amount

Equity Contributions: A minimum of 10% balance sheet equity, or; Borrower investment of equity or other funds in the project equal to 10% or more of total eligible project costs, or; The balance sheet equity includes owner-contributed capital of 10% or more of total fixed assets.

Eligibility: Eligible borrowers are for-profit businesses, non-profit businesses, cooperatives , individuals, Agriculture producers, or tribal organizations located in a rural area1 as defined by USDA. The borrower’s headquarters may be based within a larger city as long as the project is located in an eligible rural area. Is the project located in an eligible rural area?

For more information, please email allspeciallending@fswb.com and click here to apply.

Paycheck Protection Program

First round applications closed August 8, 2020.
Second round applications closed March 31, 2021.

To stay updated on future programs, please subscribe here.
The Paycheck Protection Program prioritized small businesses and the millions of Americans employed by these businesses by offering forgivable loans with funds going toward job retention and other expenses.

Helpful Resources:

• Resource Page for PPP Forgiveness Application
• PPP Loan Forgiveness FAQs
• Checklist of Documentation Required for PPP Loan Application
• ​Our FAQ on the Paycheck Protection Program
• An FAQ from the U.S. Senate Committee on Small Business & Entrepreneurship
• ​Q&A About SBA Preferred & Express Lenders
• ​Paycheck Protection Program (PPP)  OR  Economic Injury Disaster Loan (EIDL) Comparison Chart