SBA Lending

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:SBALendingFNBER

  • 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 FeatureSBA Express7(a) Program504 Loan
DescriptionSmaller Loans; Uses Lender DocumentsPrimary Program; Loans over 150KLong-Term Fixed Asset Financing
Max Loan Amount$150,000$1.3 MillionUp to $5 Million Project Cost
Use of ProceedsWorking Capital, Inventory EquipmentReal Estate, Expansion, Working Capital, Equipment, InventoryReal Estate, Land, Long-term Equipment, Construction
Maturity7 Years*Working Capital - 7 Years Machinery - 10 Years Real Estate - 25 Years10-20 Years
Maximum InterestNot more than 4.75% above PrimeNot more than 2.75% above PrimeCurrent 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.