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W I T H A N S B A loa n, borrowers may qualify for lower down payments — as low as 10 percent. Through the SBA 504 loan program, borrowers can purchase real estate for company operations with less money down than conventional (non- SBA) loans. The ability to provide less money down preserves working capital for company operations. The borrower will benefit from lower debt service requirements as a result of longer repayment terms. Using SBA terms, borrowers can obtain financing for work- ing capital for up to seven years, business purchases up to 10 years and real estate up to 25 years. Longer loan repayment terms help preserve the company's cash flow, providing additional working capital for the business. Under SBA rules, banks have flexible collateral parameters, where the lack of collateral is not the sole reason to decline the loan. As a result, service-based, retail and cash-based business owners are able to qualify for loans if their cash flow can support loan repayment. SBA loans have competitive interest rates and may be fixed for up to 20 years. With the abilit y to f i x interest rates through loan maturity, SBA loans can protect borrowers' cash flow from higher future loan payments that may arise when rates increase. Wit h f lex ible repor t i n g requ i re - ments, SBA loans allow businesses to focus on their operations and maintain- ing fewer of the bank's loan agreement requirements. The loa n a g reements for non-SBA loans contain provisions for financial reporting as well as loan covenants that must be maintained. SBA loan agreements contain fewer require- ments, which simplifies loan compliance for borrowers. SBA loans have been around since 1953, but many changes have been made over the last decade. Altogether, these changes have resulted in shor ter a nd simpler application processing. A close working relationship with your banker is key for helping you navigate the SBA loan process. Borrowers who carefully consider the SBA loan program often find that SBA loans are better options and appreciate their banker considering appropriate solutions for meeting their needs. For more information, please contact Leckie at 210-343-4558 or email karen. leckie@amegybank.com. Karen Leckie is a Senior Vice President and a Private Banker in San Antonio for Amegy Bank , a division of Zions Bancorporation, N.A. Member FDIC. An experienced banker, Leckie specializes in the healthcare industry. She meets regu- larly with healthcare experts to stay on top of issues and industry changes that impact the healthcare business. Her goal is to offer clients one-on-one, personalized solutions and comprehensive service. Amegy Bank is a Preferred SBA Lender, the highest designation awarded by the SBA. n What Are the ADVANTAGES of an SBA Loan Versus Other Conventional Financing Options? BY K AREN LECKIE AT SOME STAGE, BUSiNESS OWNERS ARE RE ADY TO L AUNCH AND TAKE THE NE X T STEPS TO GROW THEiR BUSiNESS. iN MANY CA SES, FiNANCiNG iS NEEDED TO GE T TO THAT NE X T LE VEL. iT'S ESSENTiAL FOR BUSiNESS OWNERS TO HAVE KNOWLEDGE OF THE VARiE T Y OF FiNANCiNG OPTiONS AVAiL ABLE. FOR BUSiNESSES JUST GE T TiNG STARTED OR THOSE LOOKiNG TO GROW, A GOVERNMENT- BACKED LOAN FROM THE SMALL BUSiNESS ADMiNiSTR ATiON (SBA) MAY MAKE THE MOST SENSE. 1 4❱❱❱❱❱ B A N K i N G