2. Small Business Administration  Created in 1953 to develop and aid small businesses in the U.S. Types of Financing  Real Estate  Franchises  Inventory  Accounts Receivable  Equipment  Business Acquisition  Working Capital  Refinancing

3.  SBA 7(a)  SBA Express  Small Loans (less than $350K)  Large Loans (greater than $350K)  Contract Line of Credit Program Loan Products

4.  Small Contractor LOC  CAPline Revolving Line of Credit  Export Working Capital Program  International Trade Loan  SBA 504 Program Loan Products cont.

5. Contract Line Overview  Loans are used to provide financing for assignable contracts or purchase orders  Applicants must be able to demonstrate history of successful bidding & completion of contracts  Maximum loan amount $5,000,000  PLP processing available

6.  For Profit & Not Dominant  Retail less than $7-million in sales  Wholesale less than 100 employees  Manufacturing less than 500 employees  Alternative Size Standard – Less than $5 million income after tax and $15 million net worth. Eligibility

7.  Contracts must be assignable  Demonstrate managerial/technical ability in profitable bidding & completion of contracts  Payment of purchase orders must be deposited into a controlled account  Demonstrate prior prompt payments to suppliers & subcontractors Additional Eligibility

8.  Last 3 years business & personal tax returns  Business F/S (> 180 days)  Personal F/S (all principals < 20%)  Personal and company debt schedule  Cash flow projection for project to be financed  Personal history & resume (all principals)  Proposed contract or purchase order Application

9. Use of Proceeds  Proceeds can include 100% of the cost of labor & materials necessary to complete assignable contract or purchase order

10. Establishing Loan Amount  Single line may fund multiple projects without additional SBA approval  Multiple projects must include projections showing borrowing need  Must document labor & materials costs

11.  Up to 5 years for master note  Loans to finance single transaction should be tied to project completion date Terms

12.  Maximum adjusting rate is Prime + 2.25  Can be fixed or variable – fixed rates can be higher rates  Based on negotiation with lender  SBA will allow interest rates to be increased for “excess” servicing Rates

13.  Assignment of contract being financed  Lender is allowed to take additional collateral if available and necessary Collateral

14.  SBA charges a guarantee fee ranging between 2% to 3.875% on the guaranteed portion of the loan on loans over $150,000  For loans of less than 12-month the fee is ¼ of 1%  Through December 31, 2016, Oklahoma legislation allows the lender to take a state income tax credit equal to the amount of the guarantee fee paid SBA Guarantee Fees

15.  Application/packaging fees allowed  Credit Report & Filing Fees Borrowing Costs

16. QUESTIONS?? Kent Faison BancFirst Commercial Capital 600 NW Fifth Street Moore, OK 73160 (405) 270-4733 kfaison@bancfirst.com