Pacific Enterprise Bank
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SBA Loans



SBA 504 Loans, SBA 504 Pooling Program, and SBA 7(a) Loans

Pacific Enterprise Bank specializes in providing SBA 7a loans and SBA 504 loans. As a result of our dedication, the Bank has been ranked as a top 6 SBA lender in Orange County since August 2009. SBA loans are used for a variety of needs and business types. The most common use of an SBA loan is for the purchase of commercial real estate, to refinance existing debt and working capital. Receiving an SBA loan can take between 45 and 60 days.
Pacific Enterprise Bank is a Preferred SBA Lender. The Preferred Lenders Program (PLP) is another step in SBA's process of "streamlining" the procedures necessary to provide financial assistance to the small business community. Under PLP, SBA delegates the final credit decision and most servicing and liquidation authority and responsibility to these carefully selected lenders. PLP lenders are nominated based on their historical record with the Agency. They must have demonstrated a proficiency in processing and servicing SBA-guaranteed loans.

acquisition or improvement of owner occupied real estate.

SBA 504 Loan Program

SBA 504 loans provide long-term, fixed-rate financing to small businesses to acquire commercial real estate or equipment for expansion and modernization. Typically an SBA 504 loan includes: 1) 10% down payment from borrower; 2) 1st Deed of Trust provided by Pacific Enterprise Bank equal to 50% of purchase price; and 3) 2nd Deed of Trust equal to 40% of the purchase price. The 2nd Deed of Trust is obtained through the assistance of a local Certified Development Company “CDC”.


The SBA 504 loan program assists small businesses in acquiring premises with as little as 10% down.The typical 504 loan financing structure to purchase a property (using the example of a $1,000,000 purchase price) is as follows:

50% 1st TD $500,000 Provided by Pacific Enterprise Bank
40% 2nd TD $400,000 
10% Owner's $100,000 Down Payment


  • Purchases up to $10million
  • 20 to 25 year loan amortization Blended rates of between 6% and 7.5%
  • Prepayment penalties do apply and vary depending on maturity and rate options
  • Personal guarantees of the principal owners are required
  • SBA 504 Pooling Program

  • Pacific Enterprise Bank is an approved SBA 504 pool originator and sold more than 10% of the total pools in 2011. Pacific Enterprise Bank continues to be one of the top originators in the entire country and we are actively looking for more SBA 504 loans to pool. 

  • Background: As part of the American Recovery and Reinvestment Act (a.k.a. the Stimulus Bill), the SBA in October 2009 established a secondary market for 504 first liens - SBA 504 First Mortgage Pooling program (FMP). SBA eligibility is determined based on the SBA debenture funding dates. First mortgages where the corresponding SBA debenture funded on or after February 2009 through September 2012 are eligible.

  • There are three participants for any individual loan: 
    SBA provides for a guarantee on 504 pools for the benefit of the investor. The guarantee does not apply to the underlying lender, the Pool Originator, or individual loans.
    1. The Seller (504 first mortgage lender) who holds 15% of each loan. (Third party lender)
    2. The Pool Originator who purchases 85% of each loan from the Seller and holds 5% of each loan pool for the life of that pool.
  • The Investor who purchases 80% of each loan pool from the Pool Originator.


SBA 504 Loan Pool Guidelines:

A loan pool is defined as 2 or more loans

Minimum first mortgage amount is $50,000

Loan must be current for 6 months or since time of funding

ACH payment on 1st of every month

PCLP approved Debentures must have the corresponding first mortgage reviewed by the PCLP center

All loans in a pool must be either fixed for life or adjustable (any loan where interest rate resets during the term of the loan is considered adjustable)

Loans must have similar indices (Prime, LIBOR, Treasury, etc.)

SBA will guarantee 100% of each loan pool at time of loan pool sale to secondary market investors


SBA7(a)Loan Program 

Serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

  • The key elements of the bank's SBA 7(a) program loans are:
  • Loan amounts: Up to $5,000,000.
  • Purposes: Purchase of commercial real estate, refinance of commercial real estate, purchase of equipment, refinance of equipment loans, tenant improvements, business acquisitions, working capital, and debt refinance. Purposes related to commercial real estate must be at least 51% occupied. 
  • Term/Amortization: From 7 to 25 years, fully amortizing
  • Loan to Value Limits: Typically 75% for the acquisition of a business, 90% for real estate and 100% for equipment purchase and working capital.
  • Interest Rates: Wall Street Journal Prime Rate plus margins up to 2.75%, adjusting quarterly. Three year prepayment penalties generally apply to loans with terms of 15 years or longer.
  • Personal guarantees of the principal owners are required. 

               For further information please contact Tobias Halbmaier at 949-623-7585 or complete the Contact Us form here 





A sale of the 85% of a first mortgage loan by a Seller provides:

  1. Capital Relief;
  2. Regulator Relief;
  3. Reduced Exposure;
  4. Premium Income;
  5. Servicing Revenue / Improved Gross Yield


Equal Housing LenderFDIC