First American Bank has several trained and qualified loan officers available that want to help you get the best loan package for your small business. We will work with you to determine which of following loan options available through the Small Business Administration will work best for you and your business.
SBA 7(A) Loans
SBA 7(A) loans may be used to help you establish a new business or expansion of an existing business, to purchase land or buildings, acquire equipment, machinery, furniture, fixtures, supplies, materials and so much more! SBA 7(A) loans can also be used for long-term working capital. The loan proceeds can be used to refinance existing business indebtedness.
The business must be able to demonstrate their ability to be profitable, and owners must have a reasonable amount of equity to invest.
The maximum loan amount for an SBA 7(A) loan is $2 million dollars. Loan terms on working capital and machinery & equipment is 5-10 years, based on the life of equipment. Real estate can be financed for up to 20 years. There is a prepayment penalty for loans with maturities of 15 years or more if prepaid during the first 3 years.
SBA 7(A) Express
The maximum loan amount for an SBA 7(A) Express loan is $350,000. The loan proceeds are able to be used for refinancing existing business indebtedness or for revolving lines of credit. A prepayment penalty will be given for loans with maturities of up to 7 years if prepaid during the first 3 years.
SBA 7(A) Patriot Express
$500,000 is the maximum loan amount for an SBA 7(A) Patriot Express loan. The use of proceeds can be used for revolving lines of credit or to refinance previous business indebtedness. Loans with maturities of 15 years or more if prepaid during the first 3 years will acquire a prepayment penalty. You may qualify for an SBA 7(A) Patriot Express loan if you are a veteran, reservist, active duty, in the National Guard or a spouse of those previously listed. Widows may qualify if their spouse was a service member or veteran that passed away during their service or from a service-connected disability.
SBA 504 Loans
The SBA 504 loan program provides long-term financing for acquisition or renovation of land, buildings and equipment. The business must be able to demonstrate their ability to be profitable, and owners must have a reasonable amount of equity to invest. The borrower must provide 10% of equity in the project.
The maximum loan amount for SBA 504 loans is $4 million dollars. Loan terms are set for either 10 or 20 year increments. Loans may have a declining prepayment penalty for half a term. Businesses may not exceed $7.5 million in tangible net worth or have an average net income of over $2.5 million over the past 2 years.
The United States Small Business Administration offers several helpful programs and services to help you manage your small business from start to finish. Visit SBA.gov