Through our partnership with the U.S. Small Business Administration (SBA), we are proud to put ownership within reach by offering SBA financing to local business. In fact, First Northern Bank is a SBA “Preferred Lender” — so we have extensive experience in helping business owners get the financing they need with a faster and streamlined loan approval process. We offer both SBA 7(a) loans and SBA 504 loans.
You can qualify for an SBA Loan if your business is:
Outgrown your present space? Need to upgrade your facility or add machinery & equipment? Want to stop paying rent and start building equity through the purchase of a new or existing building? SBA 7(a) and 504 Loans put ownership within reach.
SBA 7(a) Loans
The SBA 7(a) Loan Program is a loan guarantee program that may be used for a variety of business needs. Loan proceeds may be used for business expansion capital, equipment purchases, commercial real estate acquisition, the purchase of a small business, or to start up a small business.
SBA 504 Loans
The SBA 504 Loan Program provides long-term, fixed-rate, subordinate mortgage financing for acquisitions and/or renovation of capital assets including land, buildings, and equipment. Virtually all types of for-profit businesses are eligible for this program.
SBA 504 Loan Refinance Program
Designed to help small business grow, small business owners can refinance debt from adjustable and high rate loans. Paying off existing loans with a new loan at a lower cost can help increase cash flow, which can be especially helpful in a resurgent economy.
First Northern Bank is a designated “SBA Preferred Lender (PLP),” which means our customers receive preferred treatment through a faster and streamlined loan approval process. The SBA awards PLP status only to lenders who have demonstrated their commitment to small business and have the ability to effectively serve their market. To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures. There’s a reason we’ve been the region's #1 local small business lender for over a decade!
Congress created the Small Business Administration in 1953 to help America's entrepreneurs form successful small businesses. The SBA enables its lending partners to provide financing to small businesses on reasonable terms by guaranteeing major portions of loans made to small businesses.
Yes, if your business is:
The SBA loan program offers:
You can finance:
All project costs can be financed, including acquisition (land and building, land and construction of building, renovations, machinery and equipment) and soft costs such as title insurance, legal, appraisal, environmental and bridge loan fees. Closing costs may be financed.
Our lending experts can make it easy for you to obtain the funding you need. We offer:
Interest rates vary depending on the type of SBA loan for which you are applying. Contact any of our experienced SBA lending professionals for more information.
Yes. Eligible collateral includes personal and/or business real estate; equipment, inventory, and accounts receivable; and personal guarantees of all major stockholders (20%+).
Collateral typically is assets financed, which allows other assets to be free of liens and available to secure other needed financing.
The following applies for repayment terms:
A loan that combines two or more of the above purposes will have a weighted average maturity.
What would disqualify me for the SBA loan program?
If any of the following items apply to you, it will not be possible for you to obtain an SBA loan. However, there may be other reasons than listed below that would preclude you from obtaining an SBA loan, e.g., your business doesn't qualify as a small business. If you're unsure, contact a First Northern Bank SBA Lending Expert today.
Listed below are guidelines that could disqualify you for SBA financing:
Applying for an SBA Loan is easy at First Northern Bank, simply:
Along with the completed loan application, please bring or mail the following to one of our SBA Loan Offices:
*Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.