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SBA Loan Programs

Find the right loan

for your business

Helping small businesses thrive

Launch a business or give your growing company a financial boost with loans backed by the Small Business Administration.

Getting a new business off the ground takes big ideas, hard work and proper funding. As an SBA Preferred Lender (PLP Lender), Cathay Bank works with you to find the right SBA Loan Program for your business, and secure the financial assistance needed for early growth.

Through the SBA 7(a) and SBA 504 Loan Programs, our experienced bankers can help you get the financing to buy real estate, start construction projects, make leasehold improvements, purchase equipment and inventory, acquire businesses, refinance business debt and get working capital. Discover how Cathay Bank can help your small business get set up for success.

Low down payment

Access the capital you need with a down payment as low as 10% upon approval.

Minimum collateral requirements

Enjoy flexible collateral requirements on all SBA Loan Programs offered by Cathay Bank.

Longer repayment terms

Get a longer repayment period than conventional loans to keep more capital in your business.

Competitive rates

Secure low fixed and variable rates throughout the life of your loan.

SBA Loan

Programs & Services

Recent Deals

SBA 504 Loan
$4,992,000

Purchase of a 102-unit independent hotel

Los Angeles County, CA
SBA 504 Loan
$2,341,000

Purchase of a 27,000 sq. ft. industrial building for an owner-occupied trucking and logistics business

Los Angeles County, CA
SBA 7(a) Loan
$1,000,000

Refinanced and consolidated existing business debt for a dental practice

Orange County, CA
SBA 7(a) Loan
$875,000

Purchase of an existing full-service breakfast and brunch restaurant

Orange County, CA
SBA 7(a) Loan
$1,582,000

Equipment purchase and working capital for a newly established supermarket

Chicago, IL

Frequently Asked Questions

Do SBA loans take longer to process than conventional financing?

The U.S. Small Business Administration has worked diligently to streamline the approval process for SBA loans. Currently, SBA loans generally take the same amount of time during the underwriting process as conventional financing.

In addition, as a member of the SBA’s Preferred Lender Program (PLP), Cathay Bank can provide an even quicker turnaround for the borrower by, in most cases, obtaining SBA approval in-house.

Do SBA loans require a lot of paperwork?

As a federal loan program, SBA loans do require certain paperwork to be completed. However, an SBA loan application involves only slightly more paperwork than a conventional loan. If borrowers feel overwhelmed, they can work with members of the Cathay Bank SBA Department staff to complete the application forms.

Do SBA loans have high interest rates and high upfront fees?

The SBA only charges borrowers an SBA Guaranty fee, which is typically 2-3.5% of the guaranteed portion of the loan depending on the loan amount. While these fees tend to be higher than typical fees on conventional financing, the benefits of using an SBA program usually outweigh the cost. Additionally, these fees can be financed over the term of the loan, which is typically longer than the term for a conventional loan.

Currently, the SBA limits how much interest a lender can charge to a borrower. With an SBA loan, a borrower can be approved at fixed or floating rates. The borrower also has the benefit of lower down payments, flexible payments, shorter prepayment penalty periods on real estate loans and no balloon payments.

Can start-up businesses or borrowers with bad credit get an SBA loan?

Borrowers can take advantage of an SBA loan to launch a start-up, expand a business, purchase owner-occupied real estate, acquire a business, refinance debt and more. The goal of the SBA is to provide assistance when a borrower’s collateral may not meet conventional lending standards. Also, while the SBA Guaranty helps overcome some financing challenges, the SBA still requires the business to show good cash flow and the individuals to have a good credit history.

Are SBA loans only for “small” businesses?

Approximately 80% of businesses in the United States can be considered “small” under the SBA’s standards. In most industries, the SBA defines a “small business” either in terms of the average number of employees over the last 12 months or average annual receipts over the past three years.

The SBA uses the following industry criteria to determine eligibility as a small business:

  • For most retail businesses, the applicant and its affiliates cannot exceed $7.0 million in gross sales for the past 3 years.
  • For most wholesale businesses, the applicant and its affiliates cannot have more than 100 employees.
  • For most manufacturing businesses, the applicant and its affiliates cannot have more than 500 employees.

If the small business does not meet these size standards, an alternative size standard can be considered. In this case, the company’s tangible net worth must be less than $15 million, and the average net income after federal income taxes for the last two fiscal years must be less than $5 million, in order for the business to be considered “small.”

Get in touch with a specialist

Ryan Kim

SVP & SBA Loan Department Manager

Ho Jae Chang

SBA Loan Officer

James Bae

SBA Loan Officer

Charles Park

AVP & SBA Loan Officer

Frederick Cho

VP & SBA Portfolio Manager

Cathay Bank

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