Features and Benefits
• Higher leverage deals compared with conventional financing
• Longer terms available
• No early balloon payment (floating rate loan)
• No ongoing debt service requirements
• Can be used for nearly any business expense
• Down payments can be as low as 25% for start up businesses or purchases of existing businesses
• Loan amounts up to $5 million
• Competitive Rates and Terms
Terms
• Working capital: Up to 7 years
• Equipment: Up to 10 years (or useful life)
Interest Rates
• Can be fixed or variable
• Eastern Bank provides competitive market rates that cannot exceed Prime +4.5%
• Terms less than 7 years: Prime + 2.25% (for fixed loans $50,000+)
• Terms equal to or greater than 7 years: Prime + 2.75% (for fixed loans $50,000+)
Fees
SBA Guarantee Fees
• Loans less than or equal to $150,000: 2% of guaranteed portion
• Loans between $151,001 and $700,000: 3% of guaranteed portion
• Loans between $700,001 and $1,000,000: 3.5% of guaranteed portion
• Loans between $1,000,001 and $5,000,000: $26,250 plus 3.75% of the guaranteed portion above $1,000,000
Financing
• Loans less than or equal to $150,000: SBA provides 85% guarantee
• Loans greater than $150,000: SBA provides 75% guarantee
Most for-profit businesses, including start-ups on a case-by-case basis, are eligible.
Ineligible Businesses
• Nonprofits
• Businesses engaged in lending
• Passive holders of real estate (generally, the business needs to be “operating,” not an R/E investment)
• Foreign owned or located companies
• High risk industry (i.e., pyramid/gambling/speculative/etc.)
Size Guidelines
• Manufacturing – from 500 to 1,500 employees
• Wholesale – 100 employees services ¬ from $2.5 million to $21.5 million in annual receipts
• Retail – from $5 million to $21 million
• General construction – from $13.5 million to $17 million
Loan proceeds can be used for most business purposes, including:
• Working capital (including Lines of Credit via SBA Express)
• Machinery and equipment
• Furniture and fixtures
• Leasehold improvements and debt refinancing (under special conditions)
Loan maturity is up to 10 years for working capital and equipment financing and generally up to 25 years for fixed assets.
For more information, please contact one of the following:
For the North Region, Kevin DeVinney at 781-596-4414 or k.devinney@easternbank.com
For the South Region and Cape Cod, Adriana Moschella at 617-639-1751 or a.moschella@easternbank.com
For Boston and the South Shore, Ryan Fullam at 617-689-8812 or r.fullam@easternbank.com
For Northern MA and New Hampshire, Kelly Mulholland at 603-391-9299 or k.mulholland@easternbank.com