SBA Preferred Lender
1-877-337-3757

Our Loan Programs include SBA 7(a) and USDA Loans

With over 26 million small businesses in America, meeting their financing needs is vital for the growth and prosperity of our country. With the help of loan programs developed by the United States Small Business Administration (SBA), and the United States Department of Agriculture (USDA), Ocean Capital is devoted to helping small business owners across the country secure financing. 

Ocean Capital, the commercial lending division of Home Loan Investment Bank, FSB is a member of the Preferred Lender Program with the SBA. What does it mean to be a PLP lender?

SBA’s Preferred Lender Program

  • SBA’s Preferred Lender Program (PLP) includes many of the nation’s largest lenders who do high volumes of SBA lending.
  • Preferred lenders can use a streamlined paperwork process with delegated authority to approve loans, which expedites the loan approval process for small business owners and delegates the final credit decisions to these lenders.
  • Lending through the new Small Loan Advantage initiative is open to all of SBA’s PLP lenders for 7(a) loans of up to $350,000 with the regular 7(a) government guarantee.

SBA 7(a) Loans

The SBA 7(a) loan program is designed to provide loans to small businesses in need of flexible underwriting guidelines, extended loan terms, and low down payments.

Eligible Use of 7(a) Loan Proceeds Include (Non-Exclusive):

  • The purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities
  • The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
  • Long-term working capital, including the payment of accounts payable and/or the purchase of inventory
  • Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production
  • Financing against existing inventory and receivable under special conditions
  • The refinancing of existing business indebtedness that is not already structured with reasonable terms and conditions
  • To purchase an existing business

SBA loans cannot be used for these purposes:

  • To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that loss through refinancing
  • To effect a partial change of business ownership or a change that will not benefit the business
  • To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital for the business’s continuance until the loan supported by SBA is disbursed
  • To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow
  • For a non-sound business purpose

If you are unsure whether or not your anticipated use of funds is allowed, check with your SBA approved lender.

To learn more about the SBA 7(a) program, visit the official SBA website at http://www.sba.gov/.

CDC/504 Loan Program

The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.
A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders like Ocean Capital to provide financing to small businesses, which accomplishes the goal of community economic development. Typically, a CDC/504 project includes:
  •  A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost
  •  A loan secured 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)

This type of setup means that 100% of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien.

The 504 program cannot be used for working capital, inventory or consolidating debt.  Loans cannot be made to businesses engaged in speculation or investment in rental real estate. 

USDA Business & Industry (B&I) Loans

The USDA loan program is a government guaranteed program whose mission is to improve, develop and finance business & industry in rural areas of the country. To learn more about the USDA program and rural development, visit the official website at http://www.rurdev.usda.gov/.

SBAExpress

The SBAExpress program gives small business borrowers an accelerated turnaround time for SBA’s review. You will receive a response to your application within 36 hours. In addition, lower interest rates are often available to you when you apply through an Express program.

Patriot Express

Provides financial assistance for veterans and members of the military community who want to establish or expand small businesses.

The U.S. Small Business Administration has announced the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use.

Eligible military community members include:

  • Veterans
  • Service-disabled veterans
  • Active-duty service members eligible for the military’s Transition Assistance Program
  • Reservists and National Guard members
  • Current spouses of any of the above
  • The widowed spouse of a service member or veteran who died during service or of a service-connected disability

Patriot Express loan proceeds can be used for most business purposes, including:

  • Start up costs
  • Equipment purchases
  • Business-occupied real-estate purchases
  • Inventory
  • Infusing working capital
  • Managing your business
  • Expansion
  • Preparing your business for the possibility of your deployment
  • Setting up to sell goods and services to the government
  • Recovery from declared disasters.

Small Loan Advantage (SLA)

Ocean Capital is committed to expanding access to capital for small businesses and entrepreneurs in underserved communities so that we can help drive economic growth and job creation. Small Loan Advantage is structured to encourage larger, existing SBA lenders to make lower-dollar loans, which often benefit businesses in underserved markets.  Small Loan Advantage features streamlined paperwork, with a two-page application for borrowers and lenders can use their own note and guaranty agreement.

 

Loan Programs

Program Type Use of Proceeds Eligibility Maximum Loan Amount Requirements Benefits to Borrowers
SBA 7(a) Real estate,
business
acquisitions and working capital.
For-profit small business owners seeking long term financing guaranteed by the government.  $5 million Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history.

Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years).

SBA 504 Purchase of land including existing buildings, property improvements, construction of new facilities or renovating existing facilities.  The purchase of long-term machinery and equipment. For-profit small business owners seeking long term financing for building or equipment. $5 million Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history.  
Providing small businesses with long-term, fixed-rate financing to acquire fixed assets for expansion or modernization.
USDA Purchase of real
estate or working capital and business conversions. Investment
properties are
also eligible.
Borrowers located in rural areas seeking business financing. $5 million Must meet USDA
eligibility criteria for rural business location.
Program is available for properties located in
most towns with populations under
50,000.
Provides loans to rural based businesses unable to secure conventional credit due to location and lack of comparables.
SBAExpress May be used for revolving lines of credit (up to 7 year maturity) or for a term loan (same as 7(a)). For-profit small business owners seeking long term financing guaranteed by the government. $350,000 Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history.
Fast turnaround;  Streamlined process;  Easy-to-use line of credit.
Patriot Express May be used for revolving lines of credit (up to 7 year maturity) or for a term loan (same as 7(a)). Same as 7(a).  In addition, small businesses must be owned and controlled (51%) by one or more of the following groups: veteran, active-duty military, reservist or National Guard member or spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service, or of a service-connected disability. $500,000 Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history.
Higher maximum amount and lower maximun interest rate than SBAExpress; Fast turnaround; Streamlined process; Easy-to-use line of credit.
Small Loan Advantage (SLA) Real estate,
business
acquisitions and working capital
Same as 7(a) plus all loan applications will be credit scored by SBA prior to loan approval or loan number if submitted PLP. $350,000 Properties must be
at least 51% owner-occupied and operated. Borrowers must have adequate cash flow to cover debt levels and acceptable credit history.
Long-term financing; Improved cash flow; Fixed maturity; No balloons; No prepayment penalty (under 15 years); Streamlined process.