Fountainhead Commercial Capital announced the non-bank finance company will begin offering U.S. Small Business Administration (SBA) 7(a) Program loans to small businesses throughout the United States.
Fountainhead's acquisition of a Small Business Lending Company (SBLC) 7(a) Loan Program license from American Business Lending, Inc. recently received final approval from SBA. Only 14 of these licenses were created by SBA beginning in the mid-1970s.
Best known for leadership in the SBA 504 Loan Program, Fountainhead now will expand its mandate and offer loans to small business owners for working capital, business acquisitions, partner buyouts, equipment, furniture and fixtures, startup capital, and debt refinancing, among other business purposes, the company said in a release.
“After years of championing the SBA 504 loan program, we are pleased to expand our financing influence by acquiring an SBLC license for the 7(a) Loan Program,” Fountainhead CEO Chris Hurn said. “We view this acquisition as a natural evolution for our company and will offer tremendous benefits for the entrepreneurs and ‘Main Street’ businesses that we serve.”
The company will offer SBA 7(a) loans from $200,000 to $5 million nationwide. An SBA 7(a) loan is a general-purpose loan backed by SBA for up to 85 percent of the loan’s value.
Additionally, the company said, SBA 7(a) loan terms typically are longer than conventional bank financing, require less equity injections (downpayments), and are more flexible with fewer loan covenants.