Why SBA?

The SBA is a federal agency that supports small business owners and their business goals. It offers a variety of resources for small business owners and entrepreneurs, including counseling, education and financing programs.

To learn more about the SBA, visit their website.

SBA loans are government-guaranteed loans for small business owners with long-term financing needs. Many common uses for SBA loans include business acquisition, expansion, ground-up construction, purchase of commercial real estate, debt refinance and more. Depending on your needs, SBA loans can be a good alternative to traditional small business loans.

No, the SBA does not issue loans directly to small business owners. Instead, the agency guarantees loans that are issued by a partner lending institution, like FNB Small Business Finance. Since SBA loans are backed by the U.S. government, they often come with unique benefits that might not be available through conventional lending.

The two main loan products we offer are SBA 7(a) loans and SBA 504 loans. The SBA 7(a) loan product is the most popular offering, as proceeds can be used for a wide variety of purposes, including business start-up, acquisition, or expansion, partner buyout and the purchase of commercial real estate. The SBA 504 loan product is typically used for financing fixed assets, including ground-up construction, commercial real estate, furniture, fixtures and equipment. Both loan products can also be used for debt refinancing.

An SBA Express loan is often used as a working capital line of credit to manage cashflow in the business. At FNB Small Business Finance, we often pair an Express Loan with a 7(a) or 504 loan to maximize the flexibility of the financing package.

Note: FNB Small Business Finance does not offer the SBA Express loan as a standalone product.

SBA loans offer many benefits compared to traditional small business loans, including lower down payments, longer loan terms (10-25 years), flexible pre-payment options and competitive terms. The proceeds of an SBA loan can also be used for many business needs, so you aren’t required to take out multiple loans for your project. For example, one SBA loan can cover the purchase of a business and commercial real estate as well as furniture, fixtures, equipment and working capital.

At FNB Small Business Finance, we offer SBA loans with eight different rate structures to help manage interest rate volatility. Borrowers can choose the rate structure that works best for them, including three- or five-year fixed and quarterly variable rates.

With an SB7(a) loan, we offer amounts up to $5 million; and up to $10 million (or higher in certain cases) with an SBA 504 loan.

SBA loans often require personal collateral from guarantors to back the financing. Requesting personal collateral is required only if the loan is not fully collateralized by assets of the subject business. Any partner owning 20 percent or more of the subject business is required to provide an unlimited personal guarantee. However, if a business is lacking in collateral but maintains proper cashflow, the lender may choose to move forward with the loan.

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

• Operate a for-profit business.
• Be a U.S. citizen, or have a green card giving you eligibility to legally reside in the U.S. for the term of the loan.
• Be engaged in, or propose to do business in, the U.S. or its territories.
• Have reasonable owner equity to invest.

There may be some additional requirements depending on the situation. For a full list of requirements, please visit the SBA website.

To apply for an SBA loan with FNB Small Business Finance, please reach out to one of our experienced Business Development Officers (BDO).The BDO will take the time to learn about your business goals and loan requirements to customize a financing solution that meets your needs, and then guide you through the application process.

At the beginning of the SBA loan application process, you will need to provide your BDO with several documents, including but not limited to:

• A business plan.
• A personal financial statement from all partners owning 20 percent or more of the business.
• List of all current business debts and respective monthly payments.
• Three years of personal and business tax returns.
• Year-to-date income statement and balance sheet (if an existing business).
• Documentation that includes the total project cost and how loan proceeds will be spent.

Your BDO will give you guidance on other materials you may need, or request additional information from you.

There are many factors that can impact how long the SBA loan process will take. For the loan process to run as smoothly as possible, it is important to keep in constant communication with your BDO and provide them with the information they require in a timely manner. Your BDO will provide you with checklists throughout the process in order to stay on track.

Once all required information is received for your application, average turnaround time to a credit decision is 7 to 10 business days.

Due to our Preferred Lender status with the SBA, our average turnaround time is 45-60 days once commitment is issued to closing.

Your BDO will stay in touch with you throughout the loan process. You will always be just a phone call or email away from information about your loan. Refer to the how long does the process take question above for more information.

FNB Small Business Finance is part of the SBA’s Preferred Lender Program (PLP). This designation is given to SBA lenders who have demonstrated expertise in SBA lending and have successfully closed many loans. With our PLP status, we are able to approve the loan on behalf of the SBA, so you can access the capital you need without long wait times.

FNB Small Business currently lends to small business owners in 29 states and Washington, D.C. To view a map of our lending footprint, visit our SBA Lending Team page.

We provide SBA financing for franchise concepts that are deemed eligible by the SBA’s standards. For a current list of franchises that the SBA supports, reach out to one of our experienced BDOs.

Yes we do, including projects from leasehold improvements to ground-up construction. Our experienced Construction Loan Managers will work with you and your contractor to understand the funding process and help ensure the successful completion of your project.