SBA loans are long-term, small business loans partially guaranteed by the U.S. Government. Trust your business to a preferred SBA rural lender and the 2024 SBA Rural Lender of the Year, 2022 & 2021 SBA Community Rural Lender of the Year.
We offer these benefits:
- Loans up to $5 million
- Longer-term loans
- Loans for Start Ups (less than 3 years old)
- SBA guarantee fees waived on loans $1 million or less
- SBA guarantee fees reduced on loans greater than $1 million
Best used for:
- Business acquisition
- Equipment
- Debt refinance, working capital and inventory
- Tenant improvement
- Commercial real estate purchase
- Business expansion
See below to learn more about the different loan program opportunities through SBA.
All loans are subject to credit approval.
SBA 7(a) Guaranteed Loan Program
Long-term financing with no balloon payments.
Benefits to Borrowers:
- Low, competitive interest rates
- Longer-term financing and amortization than traditional commercial loan
- 0% guarantee fee for loans up to $350,000
- Start-up businesses eligible
- Fixed maturity, no balloon payments
- Improved cash flow
- Maximum Loan Amount: $5 Million
- Percent of Guarantee: 75% - 85%
Use of Proceeds:
- Expansion/renovation
- New construction or purchase land or buildings
- Purchase equipment, fixtures
- Lease-hold improvements
- Working capital
- Refinance debt
- To finance inventory, starting or buying a business
Maximum Term:
- Working capital, machinery & equipment – Up to 10 years
- Real Estate – Up to 25 years
Eligibility:
- Must be a for-profit business and meet SBA size standards
- Show good character, credit, management and ability to repay
- Must be an eligible type of business
SBA 7(a) Express
Accelerated turnaround time with reduced application document requirements.
Benefits to Borrowers:
- Streamlined processing
- Easy-to-use lines of credit
- Low, competitive interest rates
- Start-up businesses eligible
Maximum Loan Amount:
$25,000 – Unsecured | $350,000 – Secured
Percent of Guarantee:
50%
Use of Proceeds:
- Expansion/renovation
- New construction or purchase land or buildings
- Purchase equipment, fixtures, inventory
- Lease-hold improvements
- Working capital
Maximum Term:
- Revolving Lines of Credit – 7 years
- Unsecured, FF&E, Inventory, etc. – 10 years
- Real Estate – 25 years
SBA 7(a) CAPLines
This program is designed to help small businesses meet short-term and cyclical working capital needs.
Types of CAPLines and Benefits to Borrowers:
- Working Capital - Revolving line of credit for operating expenses
- Contract – Revolving line of credit that bridges gap between contract cost and receivables
- Seasonal – Revolving line of credit that provides seasonal working capital
- Builders – Revolving line of credit for tract developments or spec homes - helps contractors finance direct costs in building commercial or residential structures
- Competitive rates
Maximum Loan Amount:
$5 Million
Percent of Guarantee:
75% - 85%
Use of Proceeds:
- Seasonal and/or short-term working capital
- Cost to perform on contracts
- Construction costs
- Advances against existing inventory and receivables
- Consolidation of short-term debts
- Maximum Term: Working Capital, Contract, and Seasonal CapLines – Up to 10 years
- Builders CapLine – Up to 5 years
Eligibility:
- Must be a for-profit business and meet SBA size standards
- Show good character, credit, management, and ability to repay
- Must be an eligible business type
SBA 504: Program Overview
This program offers loans to small business to help build, buy or renovate commercial real estate. These loans are financed in part by First Southwest Bank and SBA with an equity contribution from the business owner.
Benefits to Borrowers:
- Low down payment (10% - 20%)
- Low, competitive interest rates
- Long-term, fixed rate
- Full amortization, no balloon payments
- Bank fees incurred can be included in project financing
Maximum Loan Amount:
$5.5 Million
Loan Structure:
SBA 504 loans are financed in part by First Southwest Bank, Colorado Lending Source with an equity contribution from the borrower:
- First Southwest Bank – 50% of total loan
- SBA – up to 40% of total loan
- Business Owner/Borrower – 10%, 15%, or 20% depending on the type of business
Use of Proceeds:
- Commercial real estate construction, purchase, or renovation
- Purchase machinery or capital equipment
Maximum Term: 20 years
SBA Participation Fee: 0.5% of loan amount
Packaging Fees: $650 - Loans up to $750,000
Packaging Fees: $2,500 – Loans over $750,000 (or construction loans)
Eligibility:
- Must be a for-profit business and meet SBA size standards
- Must occupy 51% or more of commercial real estate being purchased or renovated or 61% of the finished building for ground-up construction
- Individuals owning 20% or more of the business must act as personal guarantors