SBA Loan Programs
SBA stands for the Small Business Administration, a government entity established in 1953 to support small business development. The SBA enables banks like First National Bank of Elk River to extend loans to small businesses that they would not be able to obtain otherwise.
There are several unique SBA programs intended to provide financing for specific needs including:
- New construction
- Purchase of equipment and/or inventory
- Working capital
- Business expansion
Here’s a quick summary of three of the most commonly used SBA loan programs (your First National Business Banker will recommend the program that is most appropriate for you):
|Program Feature||SBA Express||7(a) Program||504 Loan|
|Description||Smaller Loans; Uses Lender Documents||Primary Program; Loans over 150K||Long-Term Fixed Asset Financing|
|Max Loan Amount||$150,000||$1.3 Million||Up to $5 Million Project Cost|
|Use of Proceeds||Working Capital, Inventory Equipment||Real Estate, Expansion, Working Capital, Equipment, Inventory||Real Estate, Land, Long-term Equipment, Construction|
|Maturity||7 Years*||Working Capital - 7 Years Machinery - 10 Years Real Estate - 25 Years||10-20 Years|
|Maximum Interest||Not more than 4.75% above Prime||Not more than 2.75% above Prime||Current 5/10 Year Treasury Issues + Increment|
*Two options: 3-year revolving line of credit, convertible to 4-year term loan, or a 7-year term loan.
Sit down and discuss your options with one of our experienced commercial lenders, or contact us online and we’ll come to you.