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The Small Business Administration (“SBA”) was established by Congress in 1953 to foster economic development and provide financial assistance to small businesses. In recent months, SBA has taken several extraordinary steps to assist small business owners. The recently passed American Recovery and Reinvestment Act contains a package of new SBA programs as well as loan fee reductions, tax incentives, and enhancements to current SBA programs that are designed to help small business owners.
These changes include up to a 90% SBA guarantee of some loans, which allows banks to extend more capital to small businesses. SBA loans are fully amortizing with no balloon payment with terms up to 25 years, benefiting the small business borrower. Most importantly, SBA has temporarily eliminated upfront guaranty fees for all eligible loans which will represent substantial savings for SBA applicants. These steps certainly provide you as a small business owner with more loan options as well as affordable lending programs to address your commercial real estate, business expansion, acquisition and start-up lending needs.
At First Eagle Bank, we are dedicated to small businesses. Through our relationship with SBA, First Eagle Bank is able to extend these attractive lending programs to you. If you’re looking to purchase commercial real estate to house your business, expand or acquire business or if you’re in need of any other type of financing, please give us a call.
There are three SBA lending programs in which First Eagle Bank is authorized to participate.
Loan Amount
- $150,000 to $2.0 million
- Quick approvals and closings for loans under $350,000
Eligibility
- Experienced management
- Business must have adequate historic cash flow to cover the proposed debt
- Borrowers must be actively involved in the day-to-day operation of the business
- Satisfactory personal credit histories are required for all principles and guarantors
Use of Proceeds
- Commercial real estate (purchases, construction, or refinance)
- Expand an existing business
- Machinery, equipment, furniture or fixtures
- Business acquisition
- Working capital
- Inventory purchase
Equity requirements
- 30% minimum for start-up businesses
- 20% minimum for existing businesses
Loan Terms
- Up to 25 years for purchase of fixed assets
- Up to 7 years for working capital
SBA 504 loans are designed specifically to finance fixed assets purchases such as a new building or a large piece of equipment. This loan program works as a partnership between First Eagle Bank and an approved SBA Certified Development Corporations (CDCs). First Eagle Bank makes the first lien loan and CDCs are utilized to issue the subordinate financing.
Some highlights of the SBA 504 Loan Program include:
- Down payment as low as 10% preserving vital working capital
- Low long-term fixed rates available
- Long-term, fully amortized loans with no balloon payments
- Project amounts up to $4,000,000
- Real estate must be 51% owner occupied for existing buildings and 60% owner occupied for proposed construction
First Eagle Bank is a designated SBA Express Lender. SBA Express offers a streamlined loan process for existing businesses as credit decisions are made internally.
Use of Proceeds
- Working capital
- Inventory & Equipment purchase
- Can be used for revolving lines of credit.
Loan Amount
PLEASE CALL OUR SBA LENDING TEAM FOR DETAILS AT 312-850-9232.
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SBA Loans 
