SBA Loans

SBA loans provide several key benefits to entrepreneurs seeking funding for their small businesses. These advantages make SBA loans much more attractive than conventional financing:

·         Lower down payments help you keep more cash in your business

·         Longer loan terms of up to 10 years for working capital, ten years for equipment, and 25 years for real estate

·         Lower monthly loan payments

·         Long-term, fully amortizing terms, so there is no balloon payment at the end of your loan

·         Flexible collateral requirements

·         Loan amounts up to $5 million 

SBA 504 can do up to 90% of financing; conventional loans typically cover no more than 75% – 80% of the project cost, are for a shorter term, and almost always include a final balloon payment.

SBA 504 rates are competitive and fixed; business owners look at the fixed-rate, low down payment, and long term of an SBA 504 loan. In addition, the cost of an SBA 504 over the entire term of the loan may be less expensive than other forms of financing.

The Small Business Administration's Preferred Lender Program, or PLP, is the highest honor an institution can receive. We are proud to have been a Top SBA Preferred Lender in Minnesota for the past several years. Working with a preferred lender allows for in-house approvals leading to a quicker turnaround, long-term dedication to serving you, and a wide range of tools and access to SBA experts. 

Not all businesses are eligible for an SBA loan - these include financial institutions, life insurance providers, investment properties, and speculative businesses. Businesses must do business in the United States, operate for profit, meet SBA size standards, have some investment equity, and demonstrate ability to repay loan.