Fountainhead Commercial Capital to Offer SBA 7(a) Small Business Loans

SBA recently approved acquisition of license from American Business Lending, Inc.

Fountainhead Commercial Capital today announced the non-bank finance company will begin offering U.S. Small Business Administration (SBA) 7(a) Program loans to small businesses throughout the United States. Fountainhead’s acquisition of a Small Business Lending Company (SBLC) 7(a) Loan Program license from American Business Lending, Inc. recently received final approval from SBA. Only fourteen of these licenses were created by SBA beginning in the mid-1970s, and Fountainhead holds one of the few in the Southeast.

Best known for leadership in the SBA 504 Loan Program, Fountainhead will now expand its mandate and offer loans to small business owners for working capital, business acquisitions, partner buyouts, equipment, furniture and fixtures, startup capital, and debt refinancing, among other business purposes.

“After years of championing the SBA 504 loan program, we are pleased to expand our financing influence by acquiring an SBLC license for the 7(a) Loan Program,” said Chris Hurn, CEO of Fountainhead. “We view this acquisition as a natural evolution for our company and will offer tremendous benefits for the entrepreneurs and ‘Main Street’ businesses that we serve.”

With the acquisition of this license through its affiliate Fountainhead SBF, LLC, the company will offer SBA 7(a) loans from $200,000 to $5 million nationwide.  An SBA 7(a) loan is a general-purpose loan backed by SBA for up to 85% of the loan’s value. The SBA does not lend directly to small businesses as banks and other commercial lenders provide funding for these loans, while SBA guarantees a portion of the loan.  SBA 7(a) loan terms are typically longer than conventional bank financing, require less equity injections (down payments), and are more flexible with fewer loan covenants. The 7(a) Program is widely regarded as the SBA’s flagship lending program and funded more than $25 billionof loans during the last fiscal year.

2 thoughts on “Fountainhead Commercial Capital to Offer SBA 7(a) Small Business Loans

  1. Karin Downes says:

    Hi, I received a PPP loan funded through your company, thank you. I noticed on the docusign form the category that said what is will be used for said payroll, I did not check that, I have no payroll. I will be using it for rent, utilities and supplier costs. I juat want to make sure there is no problem with it being forgivable with the wrong box checked? Thank you for your response. Karin
    Downes, the American Institute of Permanent Beauty & Rejuvenation.

  2. Fountainhead 504 says:

    Thank you for entrusting us with your PPP loan. To optimize your forgiveness amount, you’ll need to use at least 60% of the loan proceeds on payroll and payroll-related items (wages, health insurance, retirement programs, etc.). The other items you mentioned are eligible expenses, too, but they are to amount to no more than 40% of the proceeds. I hope this helps some.

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