Construction

At FNB Small Business Finance, we offer every borrower the option of a quarterly variable, three- or five-year fixed interest rate structure. You choose the best option for you and your business.

With an SBA 504 loan, the Certified Development Company portion of the loan, which is typically 40 percent of the project, has a fixed rate of 25 years.

• Ground up construction of a new building
• Additions to a currently owned building
• Improvements to a building being purchased
• Leasehold improvements and expansions of leased locations

We offer financing for leasehold improvements to business owners renting space for their operations.

If you’re buying or building real estate, the term of the SBA 7(a) or SBA 504 loan is usually 25 years plus the construction period. If we do an SBA 504 loan and you need a companion SBA 7(a) loan for costs not eligible under 504, that loan will have a 10-year term.

If you’re leasing and we’re doing leasehold improvements with an SBA 7(a) loan, it will be a 10-year term plus the construction period.

Depending on the nature of the project, we offer either an SBA 7(a) loan or an SBA 504 loan and, in certain cases, a combination of the two.

In the past, we have financed single projects that required an SBA 504 loan and an SBA 7(a) loan, along with an SBA Express Credit. Our team can truly customize a solution to fit your needs.

Typically, you should expect to put 10 percent of the total project cost in cash equity into the project. After injection, you should have a minimum of three to six months of living expenses in personal liquidity.

To get started, we recommend that you possess preliminary drawings and a written estimate from a qualified contractor.

To close your loan, you will need all required permits and approvals from the local jurisdiction. You should speak with your architect or contractor to help you understand all that's involved in getting permits/approvals from the local city, town or county.

For your construction project, your Business Development Officer will set up a call for both you and your contractor with one of our Construction Loan Managers, who can provide you with a detailed explanation of the construction process and answer any questions you may have. We like to set this call up as early in the process as possible so you are fully informed about what to expect and have all your questions answered up front. Most of our borrowers have never been through a commercial construction project before and find this call very helpful and informative. Your Construction Loan Manager will work closely with both you and your contractor through the entire construction process.

We recommend as a best first step that you reach out to your nearest FNB Small Business Finance Business Development Officer who will schedule an initial call with you.

A credit decision is usually reached in about 10 business days after the submission of the complete loan package.

Your closing timeline may vary depending on the needs of your project. We cannot close until you have all required permits and approvals from your city/town/county. Oftentimes, permits/approvals are the final required item we receive in the closing process. We will work with you to obtain all other required documentation while the permit/approval process is in motion.