SBA Term Loans

Finance a range of business needs with an SBA loan

Grow your business on your terms

Fuel up your business's dreams with an SBA loan. As an SBA preferred lender, we'll help you navigate through every touchpoint of the SBA's 7(a), 504 and Small loan options.

Preserve capital

Lower down payment requirements let you hold onto funds or deploy them elsewhere within your business.

Enhance cash flow

Longer amortizations help your business spread out loan payments and manage cash flow over time.

Optimize collateral

No loan-to-value requirements allow you to borrow funds with limited collateral.

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How to apply for an SBA loan

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How to apply for an SBA loan

For many businesses, SBA loans are an attractive funding option due to their flexible use of proceeds and competitive terms. These loans may be used for a range of purposes, from purchasing a business to buying new equipment.

SBA loans can be an important lifeline for businesses that require lower down payments and longer amortizations than traditional financing allows, helping them get the capital they need to grow.

That's because SBA loans are guaranteed by the US Small Business Administration, an independent agency of the federal government. This guarantee helps reduce risk for lenders, allowing them to extend credit to a wider pool of applicants.

There are many SBA lenders to choose from, and they're split into two categories—general program lenders and Preferred Lending Program, or PLP lenders.

Lenders with a PLP designation have a deep understanding of the overall SBA loan program and extensive knowledge of the application and approval process. They're also authorized to process loan applications in-house, which may be a key benefit for business owners.

If you're applying for an SBA loan through First Citizens, your first step will be to meet with an SBA lender to discuss your financing needs. They'll walk you through your options and help you determine which SBA loan program may be right for you.

The Small Business Administration backs a variety of loans, but the two most popular are 7(a) loans and 504 loans.

While each loan program has its own set of eligibility requirements, you must meet several basic conditions. For example, your business must be a for-profit company located in the United States and it must meet SBA size standards.

Your SBA lender will help you determine your eligibility and walk you through the documents you'll need to provide. Some common requirements include business and personal tax returns, a personal financial statement, interim financial statements for your business and a business debt schedule.

While there are many details to manage during the process, your SBA lender can guide you through every step—from application to closing.

To explore your borrowing options, visit firstcitizens.com/sba.

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SBA 7(a), 504 and Small Loan Details
SBA term loan programs

SBA 7(a) loans

SBA 504 loans

SBA Small loans

Use of proceeds

Most flexible use of proceeds including acquisition, partner buyout or buy-in, startup, expansion, working capital, equipment inventory, debt refinance, construction, renovation, leasehold improvements, franchise financing and commercial real estate

Commercial real estate acquisition and refinance

Working capital and most business asset purchases, excluding titled vehicles

Loan amount

$500,000 to $5,000,000

Up to $13.5 millionD

$50,000 to $500,000

Down paymentD

Up to 100% financing available

As low as 10%

100% financing

TermD

Longer terms with repayment up to 25 years for real estate; for all other uses, up to 10 years full amortization with no balloon payments; initial flexible payment schedules to assist during business ramp-up or transition period

Up to 25 years

Up to 10 years full amortization with no balloon payments; initial flexible payment schedules

Prepayment penalty

Prepayment penalties apply to loan terms of 15 years or more

Prepayment penalties apply

None

How it works
The SBA loan application process

Whether you're starting a business, acquiring one or expanding your existing operations, we can work with you to deliver the capital needed to bring your business positive results.

Step 1

Discuss options

Consult with an experienced SBA lender to discuss your business plans and financing needs and determine an ideal loan structure.

Step 2

Application

Our SBA financing specialists provide a list of required SBA documentation and guidance along the way.

Step 3

Underwriting

Our SBA underwriting team reviews the request and decisions the loan.

Step 4

Closing

Upon approval, our SBA closing team provides a checklist and guides you through the final phase of your loan.

Step 5

Continue partnership

After closing, you'll gain access to our branch network, a local banker, online business banking resources and our SBA servicing team.

SBA Loans FAQ
People often ask us

The US Small Business Administration, or SBA, helps finance new businesses and helps existing businesses flourish through a federal loan program. A loan from the SBA is a partnership between First Citizens and the SBA that provides a government guarantee.

An SBA loan typically offers longer repayment terms and potentially lower interest rates. It's also more accessible to businesses with less established credit. The SBA loan application process and approval time may take longer than with a conventional business loan.

You can use SBA loans to:

  • Start your own business
  • Purchase another business
  • Purchase commercial real estate
  • Finalize a partner buyout
  • Finance a franchise
  • Refinance debt
  • Buy inventory, furniture, fixtures and equipment
  • Gain working and expansion capital
  • Finance construction for ground-up or leasehold improvements

The SBA provides a substitute for the collateral needed for a loan by guaranteeing a portion of the loan. This guarantee reduces the risk for the lender and makes them more likely to work with a small business that doesn't have as much credit history. The SBA also requires a personal guarantee from anyone with at least 20% ownership in the company.

You'll need to provide:

  • Financial statements
  • Tax returns
  • Bank statements
  • Personal financial information
  • Business information
  • Loan application history
  • Other documents such as cash flow projects, real estate purchase agreements, documentation of lawsuits, judgments or bankruptcies

Yes, but the requirements vary depending on the loan amount and program. A microloan typically doesn't require collateral.

An SBA Small loan, a subset of the 7(a) loan program, offers longer terms and no down payment requirements. This type of loan, which is ideal for business expansion, can help you access working capital, add inventory, fund leasehold improvements and purchase machinery and equipment.

In order to qualify for an SBA loan, your business must:

  • Be organized for profit
  • Be located and primarily operate in the US
  • Meet SBA size standards
  • Demonstrate the need for financing
  • Document that SBA loan proceeds will be used for business purposes
  • Not have a history of defaulting on a federal loan or federally assisted financing, creating a loss to the federal government

Once a full application is submitted for an SBA loan, the targeted funding date can be 45 days or less.

The maximum term of an SBA loan is dependent upon the use of proceeds and can range from 10 to 25 years. SBA loans for business acquisitions, partner buyouts, business expansion, furniture and equipment purchases, tenant improvements, inventory and working capital carry a 10-year maximum term. Real estate loans carry a maximum of 25 years.

Both business and personal credit scores are key for SBA loan consideration. The higher the blended scores, the greater the likelihood for approval.

Yes. The SBA's 7(a) loan program is specifically designed to be used for business acquisitions.

SBA loan resources include SCORE, SBDC, SBA, and veterans and women's regional centers.

Available SBA resources include:

Available SBA resources include:

Yes. SBA loans can help cover startup costs, working capital needs, expansions, real estate purchases and more.

SBA Loan Insights
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Comprehensive Guide to SBA Loans

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Thanks to their competitive terms, flexible overhead requirements and favorable rates and fees, SBA loans are often an attractive funding option for small businesses at all stages of growth.
Finance

Why You Should Consider an SBA 7(a) Loan

The SBA 7(a) loan program offers attractive features for qualified business owners seeking financing.
With loan amounts of $50,000 to $5 million available, small business owners can wrap multiple aspects of a project's funding needs into one loan.

Normal credit approval applies.

Approved to offer SBA loan products under the SBA Preferred Lenders program.

First Citizens Bank offers SBA 7(a) loans in all US states except Vermont.

Equity injection requirements will vary depending on type and amount of financing being requested.

Term of the loan will depend on use of funds.

The maximum SBA 504 portion of a loan is $5 million. For certain energy projects, the SBA 504 portion can be up to $5.5 million for up to three projects not to exceed $16.5 million total.

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