BREAKING NEWS: Ivanhoe Capital Advisors is now an Agent of Pathward, N.A.    Click to Learn More 847-644-8085

Small Business Administration Loans (SBA)

Get Started

Ivanhoe Capital Is On A Mission To Transform The Negative Perception Of The SBA

We probably have heard more negative comments and apprehension about the small business administration (SBA) in the last 15 years than anyone on the planet considering we have been in the SBA loan business for all those years. Where do these negative perceptions evolve from?

Well, I can tell you from experience that most everyone who is pessimistic when it comes to the SBA stems from a bad experience with either a lender, institution, or broker who simply didn’t know what they were doing and really shouldn’t have been doing small business administration loans to begin with.


The fact is we are experts in the small business loan world. When it comes to SBA loans you really have to seek out a professional who knows the ins and outs of the SBA so you don’t waste your time.

We have a team of highly skilled individuals that take you from term sheet to close quickly. SBA loans can be complex, but not to someone who does them every day for the last 15 years. It’s just routine, like eating breakfast or brushing your teeth….It’s second nature to us now!

To start the SBA loan process, there is normally a standard list of documents that need to be collected just like any other loan. Then there is some underwriting that needs to be done – maybe some stories that need to be listened to or some schedules that need to be reconciled, but this is nothing different than a conventional loan for a small business.

We work with you every step of the way to ensure the process is as smooth as humanly possible.

 5 Reasons Why Small Business Administration Loans May Be Your Best Friend

1. Up To 90% Financing

Try getting anywhere near that percentage in a conventional commercial loan? You won’t get close! The reason small business administration lenders can offer this is that the loans are backed by a guarantee from the United States government that states upon default the government will reimburse the bank right now up to 90% of the loan amount. That is why SBA lenders are able to offer much higher loan-to-value (LTV) than you will ever get with conventional loans.

2. No Loan Covenants / Fine Print

This is the part that a lot of small business owners overlook and could be the kiss of death for them. All conventional commercial loans have covenants. If you break a loan covenant it can put you in hot water with the bank and you may end up in default and eventually into special assets even if you have made all your payments on time every month.

Here are four examples of loan covenants in the conventional commercial marketplace that do not exist in the SBA world:

  • Minimum Net Worth requirement equal to the loan amount
  • Fixed Charge Coverage Ratio where you must adhere to a minimum cash-flow standard set by the lender that you will have to prove every quarter
  • Minimum Liquidity Requirements where you must have a certain amount of
    cash-on-hand in the bank at all times
  • Minimum Debt to Equity Ratio meaning you must adhere to a certain percentage set by the bank of what they see as an acceptable amount of what the company owes as opposed to what it owns
3. No Balloon Loans

SBA loans are fully amortized over a 10 or 25-year loan schedule. Most conventional loan programs for small businesses balloon after 3-5 years and then you either have to renew the loan and go through the underwriting process again, move the loan somewhere else, or pay it off.

4. No Prepayment Penalty Or Very Minimal

Most 10-year SBA loans do not have any pre-pay provisions at all. Most 25-year small business loans have only a 3-year pre-payment period.

5. Roll Closing Costs Into The Loan

You can roll all your closing costs into the loan itself. Example: appraisal fee, environmental fees, attorney fees, title fees, and any other miscellaneous fees. Also, any fees you pay count toward your equity infusion in the small business loan which does not happen in conventional financing.

SBA Loan Fee Calculator



Thanks, we will contact you soon

Calculate your SBA fees.

Loan Amount :  $[item-234_quantity]

SBA Fee :  [item-240_price]

Submit your information to us and we'll contact you to discuss your SBA Loan needs.


Discount :
Total :

WARNING: Do Not Apply For An SBA Loan Before Reading This

Expanding a small business or acquiring a company can be an overwhelming endeavor, but with the help of an SBA loan, your chances of securing the funds to do so can greatly increase your chances. Before you apply, it’s important to understand the process and specifics of SBA loans and what to expect.

STEP 1 - Get Your Documents In Order

Collect all pertinent documents you will need for the initial underwriting of the loan. These would include business and personal tax returns for the last three years, current year Profit and Loss and Balance Sheets for your small business, a Personal Financial Statement, and your resume on experience if this is an acquisition or start-up business.

Also, a copy of your credit report would be helpful in order to do a global debt analysis of yourself. There will be more, but this short list is a good start for a lender to see if your project is feasible and able to move into underwriting.

STEP 2 - Know The Rates

Most SBA loans are going to be a variable term and will be based on the prime rate plus a spread of usually between 2.25 – 2.75. This means that as the prime rate that the Federal Reserve controls goes up, the interest you pay will go up. When the Fed cuts rates, the interest you pay will also go down.

This is important to know because some loans for small businesses can be fixed at times. The problem with fixing loans right now is that they will be fixed at a higher interest rate. When interest rates go down in the future, your fixed interest payment will remain at the higher rate instead of trending downward as rates trend downward. The current prime rate for a fixed interest small business loan is 7.5% as of December 2022.

STEP 3 - Know The Fees

Usually, there is an SBA fee to calculate of roughly 3% of the loan amount, which will be rolled up into the small business loan itself. This fee’s purpose is to act as a fund to cover the cost when a loan goes bad and must be charged off by the SBA. For a limited time, the SBA is not charging this fee for loans under $500K.

There are also other closing costs, such as title fees, attorney fees, appraisal fees, and business valuation fees. These fees will be specific to your loan and what you are doing with your loan. Some of them may or may not apply to your scenario.

STEP 4 - Know The Terms

SBA loans have two different terms. When there is commercial real estate, the loan will be amortized over 25 years. When the loan does not have a real estate component, then it will be amortized over 10 years. Sometimes, when you are financing real estate and other items together, the rate can be blended. However, this is getting rarer and rarer, and for reasons, I am not going to get into in this article, not recommended.

Also, as a general rule of thumb, when you are acquiring a small business and the real estate is more than 50% of the total project cost, then the whole loan can be amortized over 25 years.

STEP 5 - Work With A PLP Lender & One That Knows What They Are Doing

Too many times, borrowers go to the bank they currently do business with for a loan, and that usually is the wrong move. The reason is that there are not too many banks or institutions that really know SBA lending and are efficient at it. At ICA, we pride ourselves on the system that we have in place that keeps the loan process flowing very rapidly. Your loan will not be caught up in levels at our bank that prolong the timeline to close.

We are on top of all the processes that go along the way and don’t allow small business loans to get stuck. Also, you will want to work with a Preferred Lender Program (PLP) which can approve a loan without having to get permission from the SBA prior. This will save two to three weeks in the process, and we are definitely a PLP lender who is ready to get you Approved and Closed quickly!

Ivanhoe Capital Advisors Is A Preferred Financial Service Company By Approved SBA Lenders

Ivanhoe Capital Advisor’s strength is in our ability to review and process the initial package proficiently that is presented to our SBA loan participants. In the SBA world, there are no second-first impressions. With our 30-plus years of combined SBA experience, we can assure you that your small business will be represented in a way to maximize your chances of successfully being approved.

What Are The 6 Types Of SBA Loans?


SBA 7(a) Loan: working capital up to $5 million (most popular)


SBA Microloan: working capital up to $50,000


SBA CDC/504 Loan: purchasing commercial real estate that is owner-occupied


SBA CAPLine: small businesses that need a line of credit that can be used repeatedly


SBA Export Loan: exporters that need to finance their exports


SBA Disaster Loan: small businesses that have been affected by a natural disaster

SBA 7a Loan Program (Since 1953)

Almost any for-profit business is eligible. The ownership must be U.S. citizens.


Real estate purchases, improvements, or construction up to 90%: must be 51% or more occupied by the business in order to qualify

Business acquisitions up to 90%
Equipment purchases up to 90%

Terms: up to 25-years for real estate and up to 10-years of business acquisition, equipment, and working capital

Debt refinances up to 100%
Loan amounts up to $5 Million

SBA 504 Loan Program (Since 1958)


Real estate purchases, improvements, or construction up to 90%: must be 51% or more occupied by the business in order to qualify

Equipment purchases up to 90%
Debt refinances up to 100%

Terms: typical loan structure is 50% first mortgage (Bank) / 40% second mortgage (Community Development Company) / 10% from Borrower

Loan amounts up to $15 Million

SBA Loans Are Great For Commercial & Industrial Real Estate


Purchase land or buildings


Build, upgrade or renovate buildings


Purchase equipment with a service life of ten years or more


Refinance conventional debt

SBA Loans Are Very Popular With These Small Businesses


Warehousing and distribution centers


Car washes


Auto dealerships


Hotels and motels


Bed and breakfasts


Convalescent hospitals

SBA Loans Help A Lot Of Business Owners







Eligible Equipment That Can Be Purchased With An SBA Loan


Manufacturing: hydraulic machines, overhead cranes, laser cutters


Hospitality: ovens, refrigerators, coffee makers


Medical: surgical tables, anesthesia machines, sterilizers


Financial: accounting systems, furniture, office equipment


Agriculture: tractors, generators, milking equipment


Construction: lifts, tools, safety gear


Education: textbooks, chalkboards, writing utensils


Entertainment: lighting, soundboards, recording equipment


Information Technology: cables, software, computer systems


Media: studio props and sets, video cameras, makeup


Retail: POS systems, shelving, office equipment


Transportation: fleet vehicles, forklifts, handicap lifts

Small Business Administration Loan Success Stories

business man with cape receives sba loan

Huge Success Story When Business Reaches Maximum SBA Loan Eligibility

Ok, so what happens when your client is trying to purchase a business for $4.8 million dollars and they only have around $2.3 million in SBA eligibility left because they currently have a $2.7 million SBA loan outstanding? Can you say “Pari-Passu”? That is the only structure that would work ...
Dance Studio secures SBA loan for new property

Closed on Start-Up Dance Studio…Not Easy in This COVID Environment

Kayla and Kaitlin's life-long dream was to have their own Dance Studio where they could build it like Sinatra - "Their Way"! Incite Dance Center is their creation and is a space for dance education that goes beyond the physical. IDC will be a community filled with joy and the ...
Dr. Fang gets 100% financing with no money down

Dr. Fang Gets 100% FINANCING on Her First Practice with NO MONEY DOWN!

Dr. Fang, who came to the United States from China when she was only sixteen, had been an associate in a dental practice in Southern California for almost a decade. One day, she found out about a dentist who was retiring in her area who had a nice little practice ...

Related Small Business Loan Articles

Fixed Rate Business Acquisition & Expansion Loans As Low As 8%

Fixed Rate Business Acquisition & Expansion Loans As Low As 8%

For a limited time, we're offering fixed-rate business acquisition & expansion loans as low as 8% from $350K to $5M ...
Beware of Bogus SBA Business Loan Pre-Qualifications

Beware of Bogus Business Loan Pre-Qualifications From Banks & Lenders

For the past year, Ivanhoe Capital Advisors (ICA)  has been pre-qualifying businesses for SBA loans. It has come to our ...
How To Get Approved For A Commercial Loan

How To Get A Commercial Loan Fast: Just Answer These 3 Questions

As a small business owner, you may find you need a loan but don't know where to start. If you ...

Oak Brook

2625 Butterfield Rd.
Suite 126N
Oak Brook, IL 60523


6859 W. Addison
Chicago, IL 60634

Monday - Friday
8AM - 4PM

    Contact us today and tell us about your business or opportunity