SBA Loans

The right solution when small businesses start to think big.

Why First Bank for Small Business Administration Loans

If you’re looking for a team to guide you through the SBA process quickly and conveniently, you’re at the right place. Here you’ll partner with relationship managers who are well-versed in all things business and SBA lending. Benefit from their more than 150 years of collective experience, along with their dedication to making great things happen for your business.

SBA loans have grown in popularity over recent years because they offer advantages to borrowers and lenders. They are a great funding source for a variety of business decisions because of their longer repayment periods. Lenders are more confident issuing them to business owners because the government backs a majority percentage of each loan.

Find the right loan type

Partner with the First Bank team on these SBA funding types:

7(a) Loan

The 7(a) is the most common SBA loan, offering flexibility on terms and business uses. It’s a good funding source for important business moves, like acquisitions, partner buyouts, real estate purchases, refinances and more.

Advantages

• Up to 90% financing and loan amounts up to $5 million
• Fully amortized with no balloons
• No pre-payment penalties for loan terms under 15 years

504 Loan

A 504 has nearly the same eligibility requirements as the 7(a), however the funding uses are more structured and fall into three main categories – buying commercial real estate, financing improvements within that real estate and purchasing large equipment.

Advantages

• Low down payment of typically 10%
• Fixed or floating interest rate options
• Increased loan amounts of up to $15 million

Connect with an expert

Find out if a 7(a) or 504 loan is right for your business by talking with a First Bank SBA expert. Use the form on this page to connect, and we’ll be in touch soon.

SBA Loan FAQs

What is an SBA loan? SBA loan programs can help you start or expand a small business. SBA loans can be used for your business’s real estate, equipment purchases and working capital. They are government-guaranteed loans built to help small business owners succeed through smaller down payments, no minimum loan amount and flexible repayment periods. Because the terms of the loan are typically tailored to meet the specific needs of each business, it is recommended that you contact a member of our commercial lending team to discuss the terms and rates available to you.

How do SBA loans work? SBA loans are in fact bank loans, so you can apply through a local SBA lender like First Bank. Due to the tendency for small business ventures to be risky in nature, government backing makes it possible for small business lenders like First Bank to take a chance on new and smaller companies. This crucial funding allows companies to invest in their business in a variety of ways.

What can small business financing be used for? From starting to expanding your business, there are many ways to use an SBA loan. 7(a) Loans, which are the most general programs, can be used for physical purposes such as expanding or renovating your space, buying land or commercial properties, equipment and fixture purchases, inventory acquisition and lease-hold improvements. You can also use a 7(a) loan to improve cash flow through debt refinance, a seasonal line of credit or working capital. SBA 504 loans can also be used for funding assets such as equipment or real estate, but the interest rate is fixed instead of variable and the terms may vary compared to a 7(a) loan.