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SBA Loans

Welcome to Flint Community Bank SBA Lending


Flint Community Bank understands small businesses because we are a small business.  We understand all small businesses will not qualify for our conventional commercial loans, so we offer alternative financing through government backed programs like SBA (Small Business Administration).  The SBA is a government agency that helps new businesses get started and established businesses grow. You are not borrowing directly from the SBA; you are borrowing from Flint Community Bank that works with the SBA to provide loans to small business customers. This allows us to take on more risk and provide more flexible terms and financing. SBA loans are subject to the lending guidelines of both the SBA and Flint Community Bank.   

There are differences between a conventional commercial loan with Flint Community Bank and a SBA loan with Flint Community Bank.  A commercial loan from Flint Community Bank is solely the bank’s risk and is subject to our Bank’s lending guidelines/risks. SBA 7(a) loans are business loans that splits the risk between the Bank and the SBA, which guarantees a portion of the loans. The SBA 504 loan program is an SBA loan participation in which Flint Community Bank directly lends a portion of the total financing need, with the remaining loan coming from the Certified Development Company (CDC). The CDC portion is guaranteed by the SBA. SBA 7 (a) loan is the primary and most popular loan program through SBA that we offer. SBA loans are subject to the lending guidelines of both the SBA and Flint Community Bank. 
 

 

SBA Loan Types

   SBA 504 SBA 7 (a) SBA Express
Purposes
  • Purchasing equipment or real estate
  • Construction
  • No refinancing of existing debt
  • New business expense
  • Purchase of existing business
  • Expansion of a current business
  • Purchase equipment and Inventory
  • Working capital
  • Refinance of existing business debt
  • New business expense
  • Working capital
  • Purchasing equipment
  • Purchasing inventory or other business assets (vehicles)
  • Purchase existing business
  • New business expense

Benefits
  • Longer amortizations and maturity
  • Lower down payments
  • Longer maturities and amortizations
  • Lower down payment
  • Longer amortizations and maturity
  • Lower down payments

Loan Amount
  • $350,000 minimum

  • $350,000 -$3.5 million

  • $10,000 - $350,000 minimum
Terms
  • 2 years for construction
  • 7-10 years on equipment/working capital
  • 10-20 years on real estate
  • 6 months of interest only
  • 2 years for construction
  • 7-10 years on equipment/business purchase
  • Up to 25 years on real estate
  • 6 months of interest only
  • 7-10 years on equipment/working capital
  • 6 months of interest only


 

Things to Know

  1. The SBA does not participate in direct lending. The first step in applying for a SBA loan is to see your lending officer, not SBA itself. The bank provides the loan while the SBA warrants a portion of the loan. The SBA acts as a co-signer which will allow the bank to provide more flexible terms to borrowers.
  2. Not all banks offer the same SBA programs. There are several types of loan programs offered through the SBA. The bank must approve your general application which will help determine the programs that best suit your needs. Furthermore, the lending requirements for any SBA loan are unique to each bank.
  3. SBA loans are not just for startups. The SBA’s objective is to help small businesses meet financial needs, including debt financing and surety bonds. SBA-backed lending helps those who are laying their foundation and those who are already established.
  4. An SBA loan requires additional paperwork. In addition to the documentation that Flint Community Bank requires, the SBA may require an SBA loan application, a business plan, personal and business credit reports, personal and business income tax returns, bank statements, and legal documents.
  5. You can get better terms with an SBA loan. SBA loans are constructed to help borrowers who may not be able to meet the bank’s requirements. The SBA lending program helps in instances such as a recent change in business ownership, a shortfall in collateral to secure the loan, business principals who have a low net worth, or the need for extended payment terms.
 

FAQs

What is a Small Business Administration (SBA) loan?

The SBA is a federal agency that helps new businesses get started and established businesses to grow. As a borrower, you’re borrowing from a financial institution like Flint Community Bank, not from the SBA directly. Flint Community Bank works with the SBA to provide loans to small business customers.

Am I eligible for an SBA loan?

SBA loans from Flint Community Bank are for businesses that are:
  • Owner-operated
  • For profit
  • Legally organized (as a sole proprietorship, partnership, limited liability company, or corporation)
  • Within the size guidelines designated by the SBA
  • Generally unable to receive conventional credit under reasonable terms
 

Is an SBA loan only for a new business?

No. Flint Community Bank also provides SBA loans to established businesses so they can grow and expand.

 

What is the difference between an SBA loan and a business loan from Flint Community Bank?

A conventional business loan from Flint Community Bank is solely the bank’s risk and is subject to the bank’s lending guidelines. An SBA loan, on the other hand, splits the risk between Flint Community Bank and the SBA, which guarantees a portion of the loan. Because of the split risk, SBA loans are subject to the lending guidelines of both the SBA and Flint Community Bank. As a result, Flint Community Bank can take on more risk and provide more flexible terms to the borrower.

Is an SBA loan from Flint Community Bank the same as an SBA loan from another bank?

No. An SBA loan is approved, in part, by the issuing bank, and each bank has its own lending criteria. You should discuss specific terms with a bank representative to understand all the terms of your loan. Additionally, not all banks are designated as an SBA Preferred Lender. A bank that is an SBA Preferred Lender is likely to provide you with a smoother application and closing process than a bank that is not an SBA Preferred Lender.
 
 

 

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