Business Banking
SMALL BUSINESS ADMINISTRATION (SBA) LOANS
In addition to our conventional financing options, we are an active participating lender under the loan programs offered by the U.S. Small Business Administration (SBA Loans). The two main programs are
SBA 7(a) Program
Under the 7(a) loan program the SBA guarantees FNBSM the performance of the loan. FNBSM approves and funds the total loan amount subject to the SBA guaranty. The SBA guaranty ranges from 75% up to 90% of the loan amount depending on the use of proceeds and loan size.
Watch the video below to learn more about SBA 7(a)Loans.
SBA 504 program
Under the 504 loan program the SBA participates directly in the funding of the loan. After calculating the total cost of a project FNBSM finances 50% of the total cost of the project, the SBA finances 40% and the owner invests 10%.
Watch the video below to learn more about SBA 504 Loans.
The Benefits of SBA Loans
There are a number of advantages to SBA 7(A) and 504 loans, including but not limited
to: favorable rates, longer terms, full amortization and financing of start-ups or recently organized businesses.
to: favorable rates, longer terms, full amortization and financing of start-ups or recently organized businesses.
Most for-profit small businesses are eligible for an SBA-guaranteed loan:
- Manufacturers
- Wholesalers
- Retailers
- Service businesses
- Business and medical professionals
- Franchises
Loan size:
- For loans made under the 7(a) program: $60,000 to $5 Million.
- For loans made under the 504 program: $100,000 to $12.5 Million; for manufacturing operations the maximum is $15 Million.
Term:
- Up to 25 years for real estate purchase
- Up to 10 years for business acquisition
- Up to 10 years for franchise start-ups
Use of proceeds:
- Commercial real estate (purchases, construction, expansion, or refinance)
- Debt consolidation
- Leasehold improvements
- Machinery, equipment, furniture, or fixtures
- Business acquisitions
- Start-ups (franchise, professional practice)
- Capital for financing operations (offered in conjunction with certain other financing)
Yes! Please have a loan representative contact me.
