Give your business the flexibility it needs to take advantage of every opportunity.
FirstBank offers several lending options for businesses that require flexibility in their financing to manage cashflow and to handle the unexpected.
Customer Testimonial
"One of our values is to give back to the community and they share that value."
Chris Alcorn | Alcorn Construction, President
Approved to offer SBA loan products under SBA's Preferred Lender programs.
Need help expanding your business?
SBA 504 loans primarily provide financing for purchasing or improving real estate. You can borrow up to 90% of the total acquisition costs, plus other costs associated with necessary improvements to the property.
What Can An SBA 504 Loan Be Used For?
An SBA 504 loan can be used for:
- The purchase of land, including existing buildings.
- Property improvements, including utilities, parking lots and landscaping.
- The construction of new facilities or renovation of existing facilities.
A 504 Loan cannot be used for working capital or inventory, consolidating debt, or investing in rental real estate.
How Do SBA 504 Loans Work?
The SBA 504 loan structure typically allows a customer to borrow up to 90% of the total acquisition costs of a property, plus other costs associated with necessary improvements to the property. Typically, FirstBank provides financing for 50% of these total costs via a commercial real estate loan and the SBA provides a loan for 40% of the total costs. The borrower is required to contribute the remaining 10% of the total costs.
How Is An SBA 504 Loan Different From A Commercial Real Estate Loan?
There are several reasons why a borrower might choose to use an SBA 504 loan rather than a standard commercial real estate loan. Standard standard commercial loans require the borrower to contribute 25% of the purchase price of the building, plus closing costs and the cost of additional improvements. An SBA 504 loan requires less cash towards the purchase, which increases the business's ability to buy the property. The bank often lowers the interest rate when financing a smaller percentage of the purchase price as well.
I Still Have Questions.
That's what we're here for - to help your business grow and become even more successful. We're happy to discuss the details of SBA loans or other ways to assist your business. Contact a loan officer today at businesslending@efirstbank.com, click on the Get Started button above and we'll contact you, or call us: