What We Do
First and foremost, our goal at Sunovis is to match your business needs with the best SBA loan at the most favorable terms.
Sunovis Financial is a national expert on SBA loans for small businesses. We help you with the entire SBA loan process from A to Z…that is, from pre-qualification to post-closing. We are committed to small business, and understand the difficulties and frustrations many are facing today that need capital to grow.
Sunovis consists of the brightest and most experienced team members, all dedicated to the very same purpose (which is also our company slogan):
DOING THE RIGHT THING FOR THE RIGHT REASONS FOR A BETTER FUTURE.
SBA loans are different from most bank loans, and there are many details to navigate which at times can seem overwhelming. We know that small business leaders need help.
Short-Term Business Loans: An Option For Small Business or a Bridge While Awaiting an SBA Loan
In addition to SBA loans, Sunovis offer exciting short-term business loans. This product may serve as a bridge while you navigate the SBA loan process, or it may fulfill your business needs alone. The short-term business loans are from $5,000 to $150,000 with terms from 3 months to 18 months. The beauty of these loans is that the application is fast and easy; the underwriting looks at the cash flow and business health and does not focus on credit scores; loans can be approved as fast as 2 to 3 days and can be funded as quickly as in 7 days. Click here to learn more or apply for this loan now.
To apply – or decide to apply – for the SBA loan, we start by understanding your business needs and your profile. This will help us to pre-qualify you and seek out the best potential solutions. Not every small business will qualify due to SBA requirements, of course, but we will explore every option for each small business that works with us. We have a wide net of banking sources and SBA knowledge, and expert team members who know what will and won’t work.
Sunovis will guide you through the application process. This may include helping you to write a business plan, if you don’t have one. We are by your side in the detailed process from submission, approval to funding of your loan.
“Always do things right. This will gratify some people and astonish the rest.” — Mark Twain
SBA LOANS and SUNOVIS FINANCIAL
While there are various SBA programs available, we at Sunovis Financial concentrate on the two primary SBA programs:
7(a) SBA Loans, and the 504 SBA Loan Program
The chart below shows the volume of the 7(a) and 504 SBA loans made over time, courtesy of the Small Business Administration.
The 7(a) Loan Program is the SBA’s main program for helping start-up and existing small businesses, with financing guaranteed for a variety of general business purposes. Many small businesses may not be able to obtain financing through normal lending channels. The SBA guarantee loans made by participating lending institution, which reduces the risk to the lender (but not to the borrower.) The name of this loan comes from section 7(a) of the Small Business Act.
7(a) loans are the most flexible among the SBA offerings. Why? Because financing can be guaranteed for any number of general business purposes such as working capital, machinery and equipment, land and building (which can include acquisition, renovation or even new construction), furniture and fixtures, leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.
Participating lenders agree to structure loans according to the SBA’s requirements, and apply and receive a guaranty from the SBA on a portion of this loan. The SBA does not fully guarantee 7(a) loans—the lender and the SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is against payment default.
This loan, typically referred to as the CDC/504 loan, is a long-term financing tool to encourage economic development within a community. The 504 Program provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
What is a CDC, or Certified Development Company? It is a private, nonprofit corporation set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders to provide financing to small businesses, which accomplishes the goal of community economic development.
Typically, a CDC/504 loan may look like this:
- A loan secured from a private sector lender (senior lien) covering up to 50 percent of the project cost
- A loan from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the project cost
- A contribution from the borrower of at least 10 percent of the project cost (equity contribution)
With a CDC/504 loan, 100% of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien. However, the borrower does remain obligated for the full debt, even in the event of default.
Click here for Comparison Chart Here is a helpful chart comparing the two SBA loans, the 7(a) and the 504 loans.
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