Ask the Lender – What is an SBA Loan?
The Small Business Administration, SBA, offers many types of financing programs geared towards aiding small businesses in growing or starting a business. How these programs work is that the SBA guarantees up to a certain amount of the loan so the bank has less risk in taking on the loan. Citizens National Bank is an approved administrator of SBA loan programs. What that means is the business owner works directly with a lender at our bank and we complete the paperwork to apply for those programs as needed. There are 3 main programs CNB works with: SBAExpress, SBA 7A Guaranteed Loans, and the SBA 504 Loans.
- The SBAExpress is geared toward small business loans of less than $350,000. The purpose is to start or grow a business. Applications are responded to within 36 hours.
- The SBA 7A Guaranteed Loan has a maximum loan amount of $5 million. The purpose is to establish a new business or assist in acquisition, operation or expansion of an existing business. Both fixed and variable interest rate structures are available.
- The SBA 504 Loan has a maximum loan amount of $4-$5.5 million depending upon how funds will be used. It must support one of three goals; job creation, public policy or small manufacturing. Maturity terms of 10 and 20 years are available.
To determine whether or not one of these programs will benefit you, simply contact a CNB business banking officer and discuss your goals for starting or expanding your business. Once we review your financials and business plan, we’ll consider whether SBA financing is a viable option. To learn more about how SBA loan programs work, view our video.