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 deducted
from loan funds |
| $5,000 |
$78 |
P + 4.75% |
84 Months |
$575 |
Waived |
| $10,000 |
$156 |
P + 4.75% |
84 Months |
$575 |
$170 |
| $15,000 |
$234 |
P + 4.75% |
84 Months |
$575 |
$255 |
| $20,000 |
$312 |
P + 4.75% |
84 Months |
$575 |
$340 |
| $25,000 |
$390 |
P + 4.75% |
84 Months |
$575 |
$425 |
| $35,000 |
$529 |
P + 3.75% |
84 Months |
$575 |
$595 |
| $50,000 |
$755
|
P + 3.75% |
84 Months |
$575 |
$850 |
*P=Prime Rate. Currently at 3.25% as of 12/16/2008. Rate subject to change.
Potential Borrowers
Although this product was originally designed to increase
lending to geographic areas generally comprising Low to Moderate
Income areas (LMI) and to women, minorities, and/ or veterans,
applicant from all ethnic backgrounds and income levels are eligible
to apply. Loan proceeds must be used exclusively for business
purposes and all owners, partners, principals, and guarantors must
be of good character.
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)
*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.
|
