Loan Comparison Matrix

CapitalSource Small Business Lending Loan programs compared on use, terms, fees, qualifications and other requirements.
	SBA 7(a)	SBA 504	Conventional	Medical Professional
	Download Fact Sheet	Download Fact Sheet	Download Fact Sheet	Download Fact Sheet
Loan Purpose	Purchase commercial real estate, machinery and equipment, fixtures and furniture, inventory and other business assets; provide working capital; pay loan closing costs; also refinance certain loans.	Purchase, build or renovate owner occupied commercial real estate and for machinery and equipment.	Purchase commercial real estate, purchase machinery, equipment, fixtures and furniture, working capital, inventory, refinance debt, cash-out debt refinance.	Commercial real estate purchase and construction of medical professional office, machinery and equipment, fixtures, furniture, inventory and business assets. Working capital.
Loan Amount	$250,000 to $2,000,000.	Up to $6,000,000 split into 2 parts. 1. Conventional First Mortgage Loan: Up to $4,000,000 2. SBA 504 Debenture/Second Mortgage Loan: Up to $2,000,000	Up to $4,000,000.	SBA 7(a) Up to $2,000,000 SBA 504 Up to $4,000,000
Time to Close	Commitment letter typically within 72 hours of completed application! Closing within 45–60 days of signed commitment letter.
Loan to Value	Up to 90%. Higher on general purpose real estate.	Up to 90%.	Up to 75%.	Up to 130%
Interest Rate	Variable rate based on a spread over the WSJ Prime Rate	1. Conventional First Mortgage Loan – Fixed or variable rates apply. 2. SBA 504 Debenture/Second Mortgage Loan – Fixed rate as set by the SBA for the term of the loan. 3. Interim Loan – Adjusts monthly based on spread over 30 day LIBOR. (Interim loan provided by CapitalSource Small Business Lending to cover time between loan closing and SBA 504 funding of debenture).	Fixed or variable rates apply.	Competitive variable rate based on WSJ Prime, adjusting monthly.
Term	Up to 25 years, fully amortizing over the life of the loan, based upon the use of loan proceeds.	First Mortgage Loan has a term of up to 25 years, fully amortizing. SBA 504 Debenture/Second Mortgage Loan has a term of up to 20 years for commercial real estate, 10 years for machinery and equipment, fully amortizing. Interim Loan has a term of up to180 days.	Up to 25 years, fully amortizing over the life of the loan. No balloons.	Up to 25 years, fully amortizing over the life of the loan. No balloons.
Prepayment Penalty	Prepayment penalties will apply.
Fees	One time SBA guarantee fee based on dollar amount being guaranteed; SBA application packaging fee of $975; good faith deposit to be used for loan closing costs.	Origintation fees apply on the First Mortgage loan. Origination fee on Interim loan. CDC/SBA fee on the SBA 504 Debenture/Second Mortgage Loan is set by the CDC/SBA Good faith deposit to be used for loan closing costs.	Origintation fees apply. Good faith deposit to be used for loan closing costs.	One time SBA guarantee fee based on dollar amount being guaranteed; SBA application packaging fee of $975; good faith deposit to be used for loan closing costs.
Collateral	Secured by commercial real estate or a combination of commercial real estate, residential real estate, machinery and equipment, and fixtures and furniture.	Fully secured by commercial real estate or a combination of commercial and residential real estate.	Fully secured by commercial real estate or a combination of commercial and residential real estate.	Secured by commercial real estate or a combination of commercial real estate, residential real estate, machinery and equipment, and fixtures and furniture.
Recourse	Principals who own 20%+ of the business required to provide full guarantee. Principals/key managers owning less than 20% may be required to provide guarantee (case-by-case). Guarantee of affiliated companies may be required based on percentage of ownership of affiliate and borrower's relationship w/affiliate.	Principals who own 20%+ of the business required to provide full guarantee. Principals/key managers owning less than 20% may be required to provide guarantee (case-by-case). Guarantee of affiliated companies may be required based on percentage of ownership of affiliate and borrower's relationship w/affiliate.	The loan must be guaranteed by at least one principal who owns 20% or more of the borrowing entity. Guarantee of affiliated companies may be required based on percentage of ownership of affiliate and borrower's relationship w/affiliate.	Principals who own 20%+ of the business required to provide full guarantee. Principals/key managers owning less than 20% may be required to provide guarantee (case-by-case). Guarantee of affiliated companies may be required based on percentage of ownership of affiliate and borrower's relationship w/affiliate.
Debt Service Requirements	Minimum projected debt service coverage ratio of 1.25x required.
Industries	All for-profit businesses that meet SBA eligibility requirements.	All for-profit businesses that meet SBA eligibility requirements.	All for-profit businesses except those involved in nuclear waste, utilities, natural resource development, fishing vessels, biotechnology and internet technology.	Medical Doctors, Dentists, Veterinarians, and Pharmacies
Other Considerations	Appraisal and Environmental reports required for real estate used as collateral. No bankruptcy within the last three years. Life insurance on principals may be required.	Appraisal and Environmental reports required for real estate used as collateral. No bankruptcy within the last three years. Payment reserves generally required. Life insurance equal to 50% of the Conventional First Mortgage Loan may be required.	Appraisal and Environmental reports will be required for real estate used as collateral. No bankruptcy within the last three years. Payment reserves generally required. Life insurance of up to 50% of the loan amount will generally be required.	Appraisal and Environmental reports will be required for real estate used as collateral. No bankruptcy within the last three years. Life insurance on principals may be required.