What Is a SOHO Loan?
A SOHO Loan is a lending product developed by
Innovative Bank to promote the Small Business Administration's (SBA)
Community Express program to provide financial assistance, capital
access, technical and management assistance to the underserved
segment of the small business community. SOHO stands for Small
Office/Home Office and is geared to small to medium size businesses
in all geographic areas of the United States.
What are the Terms of a SOHO Loan?
A SOHO loan offers the potential qualified small
business owner financing that ranges from $5,000 up to
$50,000(Community Express minimum loan amount is $25,000). All loans
carry an 84-month term, no pre-payment penalty, minimal paperwork,
Innovative Bank paid technical assistance, as needed, and quick
turnaround time. Variable interest rates are tied to the new Prime
Rate published in the Wall Street Journal plus the
Innovative Bank spread of 4.75% or 3.75%, depending on the amount of
the loan.
Innovative Bank's SOHO
Loan Package
Loan
Amount |
Approximate
Monthly
Payment |
Variable
Rate* |
Term |
Packaging
Fee |
SBA Guaranty
Fee ** |
| $5,000 |
$78 |
P + 4.75% |
84 Months |
$575 |
$90 |
| $10,000 |
$156 |
P + 4.75% |
84 Months |
$575 |
$180 |
| $15,000 |
$234 |
P + 4.75% |
84 Months |
$575 |
$270 |
| $20,000 |
$312 |
P + 4.75% |
84 Months |
$575 |
$360 |
| $25,000 |
$390 |
P + 4.75% |
84 Months |
$575 |
$450 |
| $35,000 |
$529 |
P + 3.75% |
84 Months |
$575 |
$630 |
| $50,000 |
$755
|
P + 3.75% |
84 Months |
$575 |
$900 |
*P=Prime Rate. Currently at 3.25% as of 12/16/2008. Rate subject
to change.
**The above one-time SBA Guaranty fees have been TEMPORARILY
eliminated/waived by the SBA starting 2/17/2009.
Community Express minimum is $25,000.
Potential Borrowers
This product was designed to increase lending to geographic
areas generally comprising Low to Moderate Income areas (LMI). Loan
proceeds must be used exclusively for business purposes and all
owners, partners, principals, and guarantors must be of good
character. Borrowers can apply to any of the following loan
programs:
SBA Express - there are four programs for small business owners:
1.
SBA Express Loans - offered to any one.
2.
Community Express Loans -
offered to businesses located in HUBZone and CRA areas.
3.
Patriot Express Loans – offered to Veterans (other than dishonorably
discharged), Service-Disabled Veterans., Active Duty Military
service member participating in the military’s Transition Assistance
Program (TAP), Reservists and National Guard members, current spouse
of above, widowed spouse of a service member who died while in
service, or widowed spouse of a veteran who died of a
service-connected disability.
4.
Export Express Loans – offered to businesses engaged in export.
SBA's Online T/A
·
Assessment Tool
·
Small Business Primer: Guide to Starting a Business
·
How to Prepare a Business Plan
·
Marketing 101: A Guide to Winning Customers
·
Introduction to Accounting
·
Sample of Business Plan
·
Sample of Business Plan
(MS Word)
·
Automated Business Plan Template
*Effective Oct 1st 2008, additional requirements on Community
Express Loans.
Technical Assistance
SBA views management and technical assistance as critical to the
development, growth, and success of the potential borrower. The program is
structured to ensure that borrowers receive appropriate pre- and post-loan
closing management and technical assistance. This assistance is arranged for
and paid by Innovative Bank. The Bank has established close relationships
with various organizations to conveniently facilitate the required technical
assistance throughout the United States. Innovative Bank approved technical
assistance providers include various Small Business Development Centers
(SBDC), Women's Business Centers, SCORE Chapters ,and select private
business consulting firms- each of whom are able to offer potential clients
assistance with this important program.
|
