Business Loans

As a financial partner, Pinnacle Bank looks at the big picture for your business with you. Your personal banker at Pinnacle Bank will talk business before you talk loans, because understanding the intricacies of your business is key to offering solutions.

Small Business Administration Loans

7A Loans

  • $5 million gross maximum
  • Maximum guaranty of 75% up to $3.75 million, 85% if gross loan is $150,000 or less
  • Loan proceeds for expansion or renovations, new construction, land or building purchase, working capital, refinancing debt, seasonal line of credit, inventory, fixtures, equipment or lease-hold improvement purchases
  • Maturity depends on ability to repay; generally working capital, machinery and equipment is 5-10 years and real estate is 25 years
  • For loans 7 years or less, maximum interest rate is prime + 2.25% & loans over 7 years, maximum interest rate is prime + 2.75% (Under  $50,000, rates can be higher by 2%). Prepayment penalty for loans with maturities of 15 years or more if prepaid during first 3 years
  • Guaranty fee charged on guaranteed portion of loan only
  • Those who qualify must be for profit and meet SBA size standards, an eligible type of business, and show good character, credit, management and ability to repay
  • Benefits to Borrowers: Long-term financing, improved cash flow, fixed maturity, no balloons, no prepayment penalty (under 15 years)

504 Loans

  • $5 million maximum amount, $5.5 million for manufacturer
  • Project costs financed by 504 Loan up to 40%, Lender 50% and equity by borrower 10-20%
  • Loan proceeds for lender financing secured by first lien on project assets, 100% guaranteed debenture sold to investors at fixed rate secured by second lien
  • 10-20 year maturity, lender financing may have shorter term
  • Fixed maximum interest rate established when debenture backing loan is sold with a declining prepayment penalty for ½ of term
  • 0.5% upfront guaranty fee to SBA on first mortgage amount, ongoing fee is 0.749% on principal O/S. Ongoing fee percentage does not change during term
  • Those who qualify are for-profit businesses that don’t exceed $15 million in tangible net worth with an average net income that does not exceed $5 million for the past 2 years
  • Benefits to Borrowers: Fees are under 3%, long-term fixed rate, low down payment, full amortization & no balloons

Among others, these Loans are also available to you:

  • Commercial Lines of Credit
  • Commercial Real Estate (Construction & Permanent Loans)
  • Equipment
  • Capital Expansion Loans
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Pinnacle Bank wants you to ask President and CEO David Barnett your banking questions.