SBA Lending
Lending solutions for your small business
Through the U.S. Small Business Administration (SBA) lending program, newer businesses or established businesses that do not quite meet traditional financing requirements can find a flexible loan that will meet their needs.
First Foundation Bank is approved to offer SBA loan products under SBA’s Preferred Lender Program.
SBA Loan Products Offered
SBA 7a
This flexible general purpose loan can be used for owner occupied commercial property, equipment, inventory, working capital, debt refinance, start-ups and business expansions.
SBA CAPLine
SBA CAPLine helps small businesses meet short-term cyclical working needs with specific solutions for working capital, seasonal fluctuations, contracts and builders.
SBA Express
This SBA loan features an accelerated turnaround time for SBA review. Up to $350,000.
SBA 504
This loan was designed specifically for financing owner-occupied commercial property and equipment.
Benefits of SBA Loans
Longer terms
Longer terms available, depending on use of loan.
Lower down payments
Lender loan limits apply, up to 90% of eligible project costs and businsess needs covered by the loan.
Can be used for a variety of purposes
Uses include, owner-occupied commercial property, equipment, inventory, working capital, debt refinance, start-up businesses, general business purposes.
Easier to qualify than traditional loans
A variety of businesses including small or newer ones can qualify for an SBA loan.
SBA Lending
SBA Preferred Lender
First Foundation Bank is approved to offer SBA loan products under SBA’s Preferred Lender Program
| Compare your options |
SBA CAPLine
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SBA 7a
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SBA 504
Consists of two loans, the first is the Bank loan and the second is the SBA |
|---|---|---|---|
| Maximum Loan Amount | $5,000,000 | $5,000,000 |
1) No limit other than Bank's limit on loans to one borrower 2) $5,000,000 |
| SBA Guaranty |
85% for loans of $150,000 or less 75% for loans over $150,000 Maximum guaranty of $3,750,000 |
85% for loans of $150,000 or less 75% for loans over $150,000 Maximum guaranty of $3,750,000 |
1) No guaranty 2) Backed by 100% SBA guaranty |
| Borrower Injection | N/A | Minimum 10%, more for special purpose or start-up businesses | Minimum 10%, more for special purpose or new businesses under 2 years old |
| Maturity |
10 years for Working Capital, Contract, or Seasonal CAPLine 5 years for Builder's CAPLine |
Based on use of proceeds; 25 year maturity/amortization for real estate |
Based on use of proceeds. For real estate: 1) 10 year maturity (25 year amortization) 2) 20 year maturity / amortization |
| Fees |
No fees on loans of $150,000 or less Calculated at 3.50% of the guaranteed amount up to $1,000,000 and 3.75% of the guaranteed amount over $1,000,000 Example fee for $5,000,000: $138,125 (equates to 2.76% of loan amount) |
No fees on loans of $150,000 or less Calculated at 3.50% of the guaranteed amount up to $1,000,000 and 3.75% of the guaranteed amount over $1,000,000 Example fee for $5,000,000: $138,125 (equates to 2.76% of loan amount) |
1) Standard Bank Fees 2) Varies and depends on terms provided by CDC/SBA. Typically 2.00 to 2.25% of loan. All fees are financed |
| Prepayment Penalty | None |
3 years for loans with maturities over 15 years 5% year 1, 3% year 2, and 1% year 3 |
1) Standard Bank Prepayment Penalty 2) 10 year prepayment penalty for loans with maturities of 20 years (declining penalty % each year) In general, prepayment penalty in effect for half the term of the loan |
| Use of Proceeds |
Working Capital CAPLine: Revolving line of credit Seasonal CAPLine: Finance seasonal increases of accounts receivable and inventory Contract CAPLine: Finance all costs of one or more specific Contractor projects Builder's CAPLine: Finance direct costs with building a commercial or residential structure |
Expansion/renovation; new construction, purchase land or buildings; purchase equipment, fixtures, lease-hold improvements; working capital; refinance debt for compelling reasons; inventory or starting a business | Long-term, fixed-asset loans |
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