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Small Business Administration (SBA) Loans

Gesa Credit Union is proud to help our local small businesses. Our SBA Relationship Managers work with you one-on-one to find the right products that fits your business needs.

Because we are a not-for-profit credit union and a Preferred Lending Provider (PLP) with the Small Business Administration (SBA) it is clear why businesses choose Gesa and why we are one of the top SBA 7a lenders in the northwest.

Mike Hall – Ice Harbor
Mike Hall, Co-Owner of Ice Harbor Brewery

Why choose Gesa to help your business?

Closing on time requires all paper work to be submitted.

Benefits of SBA lending

SBA Loan Products

Below are the SBA loan programs that Gesa Credit Union participates in. If you need more help determining which program is best for you, our team of experienced relationship managers are here to help you determine which option is best for your business

Learn more about SBA Lending

Paul Long

Paul Long | Contact
SBA Lending Manager/Team Leader

Sunwan Shon

Sunwan Shon | Contact
SBA Sales Manager

Erica Lee

Erica Lee | Contact
SBA Relationship Manager

Sunwan Shon

Sunwan Shon | Contact
SBA Sales Manager

Our relationship managers are here to help you along the way

Learn more about SBA Lending

Interview – Our SBA Relationship Managers are experienced in SBA lending. We understand that every business is unique and that is why we want to fully understand your needs so we can come up with solutions and structure that gives you the best deal. We also enjoy educating you through the process if you have questions. You are an expert at business, lets us help you understand your SBA lending options.

Application- This is the process where you need to fill out some forms as well as provide us with business and personal financial statements. See below for the items that are required during this part of the process.

Underwriting – Our experienced SBA underwriters and lenders work during this process to understand the business and personal financial information that you presented to us during that application phase. It is completely normal for us to ask questions to clarify our understanding of what we are reading. We try very hard to give quick decisions, but also want to make sure that we are giving you our best deal. Since Gesa is a Preferred Lending Provider by the SBA we can turn months into days with our approval process.

Decisioning Process– This is the time when your loan is presented to the approver or loan committee. This is the part in which your loan is officially approved, declined or a counteroffer is made.

Loan Closing – Once you get the final terms of our approval, we move to the loan closing phase where our team works to coordinate all the details and conditions. We are committed to an on time closing because we know you are excited to move forward.

After loan closing – We are committed to being your banking partner as our service doesn’t end at closing. Your relationship managers are always there for ongoing support and being there if you have questions. This on-going communication is unique to the SBA industry, and we are proud to offer our members this invaluable resource.

Small Business Administration (SBA) loans provide financing for businesses that are seeking more favorable loan terms than conventional financing or that may not qualify for a traditional small business loan. As compared to conventional financing, SBA loans offer greater flexibility. Your loan is funded by Gesa Credit Union and the SBA provides a guarantee up to us of 75-85% of the loan in the case of a default. This encourages lenders to make loans that they normally would normally do. Another way to look at an SBA loan is like a credit band aid. Say you don’t have enough collateral to collateralize your loan, this can be a credit band aid. Maybe you don’t have enough down payment compared to conventional financing, that can be a credit band aid. You would never put a band aid on a broken arm, right? So, we only use one or maybe two credit band aids on an SBA credit. SBA Icons
  • Purchase, construct or renovate owner-occupied commercial real estate- Buy a building for your business and replace your rent.

  • Acquire a business– Do you want to buy an existing business? SBA loans can help.

  • Purchase equipment and vehicles for your business

  • Growing your business with newer equipment or vehicles to be more productive.

  • Working capital for your business– Maybe you have customers that are taking longer to pay and needs some capital, or you are entering a slow season and need capital to make payroll.

  • Refinance debt– Perhaps you have some higher interest credit card or term loan debt. Refinancing that debt for a longer term which will give you a lower monthly payment may be a good financial strategy.

  • Lower down payments which means more money in your business account
  • Longer loan terms which means your payments will be smaller
  • No balloon payments which means no need to refinance or worry about the loan coming due in the middle of the loan term.
  • Finance Goodwill/Intangible assets in Business Acquisition Purchases

Interest rates are negotiated between the borrower and the lender but are subject to SBA maximums. Interest rates are typically variable based on Wall Street Journal Prime Rate. Your payments and interest rate can adjust quarterly up or down based on prime rate. See your SBA Relationship Manager to learn more about Gesa Credit Union SBA interest rates.

Gross Loan SizeFees (See note 1)Notes
SBA 7a and Express loans of $1 Million or less0% of guaranteed portionMaturities that exceed 12 months
$1,000,001 – $2,000,0001.45% of guaranteed portion up to $1,000,000 PLUS 1.70% of the guaranteed portion over $1,000,000Maturities that exceed 12 months
$2,000,001 – $5,000,000 (See note 3)”3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000Maturities that exceed 12 months

Note 1: The SBA specifies the amount of certain fees each fiscal year for all loans
approved during that year. The current fees expire September 30, 2024.

Note 2: For example, the guaranty fee on a $600,000 loan with an 75% guaranty would
be 0%

Note 3: For example, the guaranty fee on a $5,000,000 loan with a 75% guaranty (3.75 million guaranteed portion) would be 3.5% of $1,000,000 ($35,000) plus 3.75% of $2,750,000 ($103,125) with totals $138,125.

The SBA specifies the amount of certain fees each fiscal year for all loans approved during that year. The current fees expire September 30, 2024. Make sure to ask your SBA Relationship Manager for other fees that could be charged for SBA loans.


For loans with a maturity of 179 months or less, there are no prepayment penalties

For loans with a maturity of 180 months or longer, prepayment penalties apply when:
The borrower voluntarily prepays 25 percent or more of the outstanding balance of the loan.
The prepayment is made within the first three years after the date of the first disbursement of the loan proceeds.

The prepayment fee is as follows:
During the first year after disbursement, 5 percent of the amount of the prepayment.
During the second year after disbursement, 3 percent of the amount of the prepayment.
During the third year after disbursement, 1 percent of the amount of the prepayment.


While the vast majority of businesses are eligible for financial assistance from the SBA, some are not.

Eligible businesses must:

  • Operate for profit
  • Be engaged in, or propose to do business in, the U.S. or its territories
  • Have reasonable owner equity to invest
  • Use alternative financial resources, including personal assets, before seeking financial assistance

Ineligible businesses
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending, or where the owner is on parole.

Specific types of businesses not eligible include:

  • Real estate investment firms, when the real property will be held for investment purposes as opposed to loans to otherwise eligible small business concerns for the purpose of occupying the real estate being acquired.
  • Firms involved in speculative activities that develop profits from fluctuations in price rather than through the normal course of trade, such as wildcatting for oil and dealing in commodities futures, when not part of the regular activities of the business.
  • Dealers of rare coins and stamps are not eligible.
  • Firms involved in lending activities, such as banks, finance companies, factors, leasing companies, insurance companies (not agents), and any other firm whose stock in trade is money.
  • Pyramid sales plans, where a participant’s primary incentive is based on the sales made by an ever-increasing number of participants. Such products as cosmetics, household goods, and other soft goods lend themselves to this type of business.
  • Firms involved in illegal activities that are against the law in the jurisdiction where the business is located. Included in these activities are the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that permits illegal prostitution.
  • Gambling activities, including any business whose principal activity is gambling. While this precludes loans to racetracks, casinos, and similar enterprises, the rule does not restrict loans to otherwise eligible businesses, which obtain less than one-third of their annual gross income from either the sale of official state lottery tickets under a state license, or legal gambling activities licensed and supervised by a state authority.
  • Charitable, religious, or other non-profit or eleemosynary institutions, government-owned corporations, consumer and marketing cooperatives, and churches and organizations promoting religious objectives are not eligible.

Make sure to talk with your SBA Relationship Manager for details on these rules.


Lenders are not required to take collateral for loans up to $50,000. (Effective 8/1/23)
For loans greater than $50,000 up to $500,000 the lender may also look for additional collateral from the guarantor such as equity in residential or investment real estate to collateralize the loan.
For loans more than $500,000, the SBA requires that the lender collateralize the loan to the fullest extent possible up to the loan amount. If business fixed assets do not “fully secure” the loan the lender may include trading assets (accounts receivable & inventory) and must take available equity in the personal real estate (residential and investment) of the principals as collateral.
SBA considers a loan as “fully secured” if the Lender has taken security interests in all assets being acquired, refinanced, or improved with the 7(a) loan and available fixed assets of the Applicant with a combined Net Book Value as adjusted below, up to the loan amount. The term “fixed assets” means real estate, including land and structures, machinery and equipment owned by the business or guarantor.

  • Any Improved Real Estate- 85%
  • Residential or Commercial Land- 50%
  • New machinery and equipment- 75%
  • Used or existing machinery and equipment- 50% of net book value OR 80% with a liquidation appraisal

Make sure to talk with your Gesa SBA Relationship Manager to structure the best deal for you.


Step 1: Required forms/reports to review an SBA loan application:

Step 2: If you want to get a head start on the application process you can start filling out this section or wait until you are conditional pre-qualified by your SBA lender.

  • SBA form 1919
  • Business plan (if lender requests)
  • Insurance agents name and phone number
  • Corporate entity documents
  • Copy of driver’s license for each guarantor
  • If you loan is for a business acquisition:
    • SBA Business Acquisition Questionnaire (provided by the lender)
    • Last 3 years tax returns of the business that is being purchased
    • 2 years financial projections with assumptions (if lender requests)
    • Current year to date profit and loss statement and balance sheet for the business that is being purchased
    • Resume for each guarantor
    • Asset list with value of each asset
    • Purchase and Sale Agreement
    • Landlord’s name and phone number if leasing business property
    • Last 2 months bank statements showing equity is ready for purchase.
  • If your loan is to purchase commercial real estate:
    • Copy of Purchase and Sale Agreement
    • Environmental Questionnaire (provided by the lender)
  • If your loan is to construct commercial real estate
    • Copy of Purchase and sale agreement (For land)
    • Construction budget
    • Contractor agreement
    • Copy of architectural drawing & plans
    • Environmental Questionnaire (provided by the lender)

Information on this site is for education purposes only and can change by Gesa Credit Union or the SBA at any time. Please make sure to talk with your Gesa SBA Relationship manager for all terms, conditions, and disclosures. Approved to offer SBA loan products under SBA’s Preferred Lenders Program.

Additional no-cost resources


The SBDC offers confidential consulting and training to help you make sound business decisions.

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