Portion of the loan guaranteed by the SBA
No minimum loan amount
For commercial real estate & equipment
The SBA 504 Loan Program is used to finance the purchase of fixed assets, including owner occupied commercial real estate and equipment. Often referred to as a 50/40/10 loan, the program offers up to 90 percent financing for existing businesses. Typically the First Trust Lender, First National Bank Small Business Finance, would provide 50 percent financing, an arm of the SBA called a Certified Development Company (CDC) provides 40 percent financing, and the borrower injects 10 percent of the project cost in equity.
The SBA 504 Loan Program typically has terms up to 20 years with a fixed rate on the CDC portion. At First National Bank Small Business Finance, we typically offer a 25 year term on the First Mortgage with rates that adjust every 5 years. There is no minimum size for an SBA 504 Loan, and they can typically be used for projects up to $10 Million or more.
To be eligible for the SBA 504 Loan Program, a business must be for profit and fall within a size limit of having a tangible net worth of less than $15 Million and have had an average profit of less than $5 Million in the last two years. These loans are subject to underwriting by the bank, the CDC and the SBA. SBA 504 loans have a job creation requirement of one new job for every $65,000 of loan proceeds.
Our objective is to make the borrowing process simple and straightforward. You can begin by adding this product to your cart. During the checkout process you can select the option to set up time to meet with one of our experts.
Depending on your type of organization, we may need one or more of the following documents when opening your account. These may include:
FNB offers a full breadth of products and services for your needs.
Article
When pursuing new opportunities, the process to secure financing can be complex. Consider a Small Business Administration (SBA) lo...
Article
Nearly every business is looking for tomorrow's growth. The successful ones also look at today's efficiencies. Sometimes that requ...
