Phoenix market context
- Main district office in Phoenix
- SBA lists 4041 N. Central Avenue as the Arizona District Office's main location, serving Maricopa and several other counties. It is an SBA address. The loan is still made by a lender. SBA Arizona District Office
- SOP 50 10 guaranties
- SOP 50 10 is the SBA rulebook for lenders and CDCs, including guaranty requirements. Owners of 20 percent or more are the sponsorship group lenders look at. The current SOP controls. SBA SOP 50 10
- Apply with a lender
- SBA's 7(a) page says the business applies through a participating lender and that SBA does not fund 7(a) loans directly. The published maximum is $5 million. SBA, 7(a) loans
SBA's 7(a) page says the program guarantees loans that participating lenders make, and that the business applies with the lender rather than with SBA. Real estate is one use SBA lists, next to equipment, working capital, and changes of ownership. A Phoenix dental practice buying its building, or a company buying another company whose value sits in the real estate, can be that kind of file. A house the buyer will live in cannot. SBA publishes a $5 million maximum. The lender decides the amount. We do not quote a rate on either figure.
The Arizona District Office lists its main office at 4041 N. Central Avenue, Suite 1000, Phoenix, and says that location serves Maricopa, La Paz, Mohave, Coconino, Pinal, Yavapai, and Yuma counties. A Phoenix address is in that Maricopa service area. The building on Central Avenue is not our branch. Capital Market Funds works from Scottsdale only. SBA's size-standards page is how a lender checks whether the business is small. The standard follows the industry code.
SOP 50 10 is SBA's standard operating procedure for lender and development-company loan programs. Guaranty requirements live there. A working description sponsors hear is that each owner of 20 percent or more of the applicant provides a guaranty. The SOP in effect on the day of the application, and the lender, control the wording. This page is not the SOP and not legal advice. Have counsel read any guaranty before it is signed. The statewide page is Arizona SBA 7(a). The fixed-asset alternative is Phoenix SBA 504. A conventional portfolio loan is Phoenix bank. The structure note is 7(a) versus 504. The city hub is Phoenix. The SBA 7(a) calculator uses numbers you type.
Phoenix 7(a) facts to line up before a lender meeting
Occupancy
Which operating company uses which square feet, and who else has a lease.
Ownership
Each person at or above the SOP's guaranty threshold, and anyone else the lender asks about.
Use of proceeds
Building only, or building plus equipment, working capital, or a business purchase.
Size
The industry standard on SBA's size-standards page, applied by the lender.
7(a), 504, or a Phoenix bank loan
Choose by what the business needs inside the loan. A 7(a) loan from an SBA lender can mix the building with working capital, equipment, or a business purchase. A 504 project uses a bank first lien and a CDC debenture for eligible fixed assets. A conventional bank loan has no SBA guaranty and no SBA occupancy test, and it can be the right path when the business already qualifies on its own. We arrange the comparison. We are not the bank, not the CDC, and not the SBA lender.
Owner occupancy is the commercial test. The operating company uses the building. Space leased to unrelated tenants is something to disclose, not something to hide inside an owner-user story. An investor who wants a leased building without operating a business there should use a conventional commercial mortgage.
Guaranties under SOP 50 10
Plan on personal guaranties from the owners the SOP requires, and ask the lender whether spouses or other parties will be asked to join. Joinder is a document question for counsel, especially for anyone relying on Arizona community-property rules. We will not tell you that a guaranty is safe to sign. The lender's form is the form.
Craig Hoebing arranges Phoenix 7(a) requests from the Scottsdale office, Capital Market Funds, LLC - CBK-2007014 - Commercial Mortgage Banker, NMLS 1445066. Capital Market Funds is not a Fannie Mae DUS lender. Sending tax returns does not apply to SBA. The SBA lender's application does.
Phoenix owner-user choices
| Source | When it fits |
|---|---|
| Phoenix 504 | A bank and a CDC for a Phoenix fixed-asset project. We are not the CDC. |
| Bank | A Phoenix bank loan without an SBA guaranty, when the business can qualify on conventional terms. |
| Arizona 7(a) | The statewide page. This URL is the Phoenix owner-user file. |