First Bank is dedicated to fueling the growth and success of small businesses in Illinois and Indiana.
Our in-house Small Business Administration (SBA) team has expertise to guide you through the SBA loan process smoothly and efficiently. Our SBA Loans are designed to meet the unique needs of small businesses, offering more flexible terms, lower down payments, and reduced fees compared to traditional business loans.
Whether you're looking to start a new venture, expand your current operations, or need working capital, our SBA Loans provide a viable solution. From the popular SBA 7(a) loan, ideal for a variety of general business purposes, to the 504 loan, perfect for major fixed asset purchases, First Bank has the resources to support your business ambitions.
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.
- 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.
- Low down payment of typically 10%
- Fixed or floating interest rate options
- Increased loan amounts of up to $15 million
Embark on your business journey with a trusted financial partner.
Reach out to First Bank today and discover how our SBA Loans can help your business in Illinois and Indiana reach its full potential.
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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.
SBA Loans Frequently Asked Questions
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.
Financing strategies vary by business type and stage.
So whether you're just getting started, thinking of taking it to the next level or keeping things running smoothly, connect with our team today and let's make great things happen.
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Loans subject to credit approval by First Bank and the Small Business Administration. First Bank cannot provide tax or legal advice. Please seek the guidance of a tax or legal professional if you have questions.