Small business loan financing options
Bank of America Business Advantage
Small business loan financing options Which loan option makes the most sense for your business? This summary is designed to help you determine some possible options for your business, based on different loan scenarios. Prospective loan information Purchase price Interest rate (estimate)
Conventional loan promotional offer (if applicable) 1.99% Rate 6 Months
$1,150,000 4.30%
Appraisal Fee
Key comparisons Loan options Maturity (yr) Amortization (yr) Fixed rate term (yr) Purchase price Downpayment Financing amount SBA loan - 20 yrs Rate Prepayment penalty Bank of America loan Rate Prepayment penalty
Waived (For Conventional Loan)
Interpreting comparisons Conventional loan 10/20 10 20 10 $1,150,000 20% $920,000
Conventional loan 15/15
SBA 7A loan 25/25
15 15 15 $1,150,000 20% $920,000
SBA 504 loan 10/25
25 25 25 $1,150,000 10% $1,035,000
10 25 10 $1,150,000 10% $1,035,000 $460,000.0 4.59% 5/3/1 10 yrs declining $920,000 $920,000 $1,035,000 $575,000 4.3% 4.3% 4.3% 4.3% None None None None $4,600 $29,109 Financing fee estimates $4,600 $17,940 Interest expense* $429,532 $307,417 $655,802 $608,154 Principal $920,000 $920,000 $1,035,000 $1,035,000 Monthly payment $5,669 $6,878 $5,636 $6,064 Downpayment $230,000 $230,000 $115,000 $115,000 Year 1 cashout $287,014 $301,934 $182,632 $187,764 Balloon $552,114 N/A N/A $414,821 Promo savings $23,633 $22,550 N/A N/A *Assumes 10/20 conventional loan's balloon of $552,114 is refinanced for 10 years at 4.3% upon maturity *Assumes 10/25 SBA 504 loan's balloon of $414,821 is refinanced for 15 years at 4.3% upon maturity
• The least interest expense is incurred under the Conventional loan 15/15 option, at $307,417. • The lowest monthly payment is under the SBA 7A loan 25/25 option, at $5,636. • The lowest downpayment is under either of the SBA options, at $115,000. • For the Conventional 10/20 option, the promotional offer saves $23,633 in interest expense over the life of the loan compared to financing without the offer. For the 15/15 option, the offer saves $22,550.
Monthly payment estimate $6,878 $5,669
$6,064
$5,636
Conventional loan 10/20
Conventional loan 15/15
SBA 7A loan 25/25
SBA 504 loan 10/25
Advantages of each type of loan SBA 504 90% financing Low down payment Low fixed rates Low SBA fees Collateral specific No liens on home
Matthew Wong, VP [email protected] Mobile: 702-305-7578
$1,035,000 $115,000 $187,764 $414,821 $0
$0
$0
$115,000 $182,632
$608,154
$1,035,000 $655,802
$920,000
$920,000 $22,550 $230,000 $301,934 $0
Our small business specialists will work to help you strengthen your business and plan for the future. If you have any questions, please contact me.
$307,417
We’re committed to finding the smartest path to long-term growth for your business.
Loan expense overview
$23,633 $230,000 $287,014 $552,114
SBA 7A 90%+ financing Low down payment Fixed rates up to 25 yrs SBA fees financed Flexible prepayment One time close
$429,532
Conventional Finances diverse business needs May have lower fees May be eligible for promotions May allow greater customization May have quicker close time One time close
Conventional loan Conventional loan SBA 7A loan 25/25 SBA 504 loan 10/25 10/20 15/15 Interest expense* Principal Promo savings Downpayment
Year 1 cashout
Balloon
The rates and terms, and the cost comparisons set forth above, are hypothetical scenarios for discussion purposes only. The actual rates and terms you may be offered, and the cost comparison based on those actual rates and terms, may differ. Promotional rates are not applicable to SBA loans. Projections, options, assumptions or estimates forming the basis for any of the scenarios presented may not represent current or future financial performance. This information is not to be relied upon for investment, financial or estate planning purposes. Bank of America makes no express or implied warranties, nor does it guaranty any success or promised results with respect to any of the scenarios presented, and disclaims the same to the extent allowed by law. Consult with your tax, financial and/or legal advisors prior to making any decision. Bank of America, N.A. Member FDIC ©2017 Bank of America Corporation. | ARTPDGGT | 03/2017 | SHEET-02-17-0400
Small business loan financing options Which loan option makes the most sense for your business? This summary is designed to help you determine some possible options for your business, based on different loan scenarios. Prospective loan information Purchase price Interest rate (estimate)
Conventional loan promotional offer (if applicable) 1.99% Rate 6 Months
$1,150,000 4.30%
Appraisal Fee
Key comparisons Loan options Maturity (yr) Amortization (yr) Fixed rate term (yr) Purchase price Downpayment Financing amount SBA loan - 20 yrs Rate Prepayment penalty Bank of America loan Rate Prepayment penalty
Waived (For Conventional Loan)
Interpreting comparisons Conventional loan 10/20 10 20 10 $1,150,000 20% $920,000
Conventional loan 15/15
SBA 7A loan 25/25
15 15 15 $1,150,000 20% $920,000
SBA 504 loan 10/25
25 25 25 $1,150,000 10% $1,035,000
10 25 10 $1,150,000 10% $1,035,000 $460,000.0 4.59% 5/3/1 10 yrs declining $920,000 $920,000 $1,035,000 $575,000 4.3% 4.3% 4.3% 4.3% None None None None $4,600 $29,109 Financing fee estimates $4,600 $17,940 Interest expense* $429,532 $307,417 $655,802 $608,154 Principal $920,000 $920,000 $1,035,000 $1,035,000 Monthly payment $5,669 $6,878 $5,636 $6,064 Downpayment $230,000 $230,000 $115,000 $115,000 Year 1 cashout $287,014 $301,934 $182,632 $187,764 Balloon $552,114 N/A N/A $414,821 Promo savings $23,633 $22,550 N/A N/A *Assumes 10/20 conventional loan's balloon of $552,114 is refinanced for 10 years at 4.3% upon maturity *Assumes 10/25 SBA 504 loan's balloon of $414,821 is refinanced for 15 years at 4.3% upon maturity
• The least interest expense is incurred under the Conventional loan 15/15 option, at $307,417. • The lowest monthly payment is under the SBA 7A loan 25/25 option, at $5,636. • The lowest downpayment is under either of the SBA options, at $115,000. • For the Conventional 10/20 option, the promotional offer saves $23,633 in interest expense over the life of the loan compared to financing without the offer. For the 15/15 option, the offer saves $22,550.
Monthly payment estimate $6,878 $5,669
$6,064
$5,636
Conventional loan 10/20
Conventional loan 15/15
SBA 7A loan 25/25
SBA 504 loan 10/25
Advantages of each type of loan SBA 504 90% financing Low down payment Low fixed rates Low SBA fees Collateral specific No liens on home
Matthew Wong, VP [email protected] Mobile: 702-305-7578
$1,035,000 $115,000 $187,764 $414,821 $0
$0
$0
$115,000 $182,632
$608,154
$1,035,000 $655,802
$920,000
$920,000 $22,550 $230,000 $301,934 $0
Our small business specialists will work to help you strengthen your business and plan for the future. If you have any questions, please contact me.
$307,417
We’re committed to finding the smartest path to long-term growth for your business.
Loan expense overview
$23,633 $230,000 $287,014 $552,114
SBA 7A 90%+ financing Low down payment Fixed rates up to 25 yrs SBA fees financed Flexible prepayment One time close
$429,532
Conventional Finances diverse business needs May have lower fees May be eligible for promotions May allow greater customization May have quicker close time One time close
Conventional loan Conventional loan SBA 7A loan 25/25 SBA 504 loan 10/25 10/20 15/15 Interest expense* Principal Promo savings Downpayment
Year 1 cashout
Balloon
The rates and terms, and the cost comparisons set forth above, are hypothetical scenarios for discussion purposes only. The actual rates and terms you may be offered, and the cost comparison based on those actual rates and terms, may differ. Promotional rates are not applicable to SBA loans. Projections, options, assumptions or estimates forming the basis for any of the scenarios presented may not represent current or future financial performance. This information is not to be relied upon for investment, financial or estate planning purposes. Bank of America makes no express or implied warranties, nor does it guaranty any success or promised results with respect to any of the scenarios presented, and disclaims the same to the extent allowed by law. Consult with your tax, financial and/or legal advisors prior to making any decision. Bank of America, N.A. Member FDIC ©2017 Bank of America Corporation. | ARTPDGGT | 03/2017 | SHEET-02-17-0400
