SBA Loans
First American Bank is offering two types of SBA Loans.
Contact Michael Dillinger
Senior VP, Lending
SBA 7(A) Loans
7(A) may be used to establish a new business or expansion of an existing business. To purchase land or buildings, acquire equipment, machinery, furniture, fixtures, supplies or materials. Can also be used for long-term working capital. Proceeds can be used to refinance existing business indebtedness which is not already structured with reasonable terms and conditions.
Company must also be a for profit business. The business must be able to demonstrate the ability to be successful. Owner must have reasonable owner equity to invest.
Maximum loan amount is $2 million dollars. Loan terms on working capital, Machinery & equipment is 5-10 years based on life of equipment. Real estate can be financed up to 25 years. Prepayment penalty for loans with maturities of 15 years or more if prepaid during 1st 3 years.
SBA 504 Loans
The SBA 504 loan program provides long-term financing for acquisition or renovation of land, buildings and equipment. The company must also be for profit and demonstrate the ability to be successful. Borrower must provide 10% of equity in the project.
Maximum loan amount is $4 million dollars. Loan terms are 10 or 20 years. Loan can have declining prepayment penalty for 1/2 term. Business can not exceed $7.5 million in tangible net worth and do not have average net income over $2.5 million for past 2 years.