• Available for start-up businesses, as well as purchasing and refinancing existing businesses
• Government-assisted help for businesses that might otherwise have difficulty getting approved
• Special financing for qualifying businesses
• Attractive rates – usually below market
• A wide range of lending options available:
  • Commercial real estate purchase and refinance
  • Construction
  • Business acquisition or expansion
  • Equipment/inventory purchase
  • Working capital
  • And more
• Lower down payment—as low as 10%
• Extended terms – up to 25 years
• All project costs can be financed
• Quick, local decision-making and processing
• Detailed, attentive service from start to finish

You can qualify for an SBA Loan if your business is:

• A for-profit organization (other loan programs are available for non-profit organizations)
• Independently owned
• Not exceeding the following maximum size standards:
  • Manufacturing – varies by industry from 500 to 1,500 employees
  • Wholesaling – up to 100 employees
  • Service – varies by industry from $5.0 million to $25 million in revenue
  • Commercial real estate must be 51% occupied by your business if you are purchasing the building, or;
  • Must be 60% occupied by your business if you are constructing the building

Outgrown your present space? Need to upgrade your facility or add machinery & equipment? Want to stop paying rent and start building equity through the purchase of a new or existing building?  SBA 7(a) and 504 Loans put ownership within reach.

SBA 7(a) Loans

The SBA 7(a) Loan Program is a loan guarantee program that may be used for a variety of business needs. Loan proceeds may be used for business expansion capital, equipment purchases, commercial real estate acquisition, the purchase of a small business, or to start up a small business.

SBA 504 Loans

The SBA 504 Loan Program provides long-term, fixed-rate, subordinate mortgage financing for acquisitions and/or renovation of capital assets including land, buildings, and equipment. Virtually all types of for-profit businesses are eligible for this program.

SBA 504 Loan Refinance Program

Designed to help small business grow, small business owners can refinance debt from adjustable and high rate loans.  Paying off existing loans with a new loan at a lower cost can help increase cash flow, which can be especially helpful in a resurgent economy.

First Northern Bank is a designated “SBA Preferred Lender (PLP),” which means our customers receive preferred treatment through a faster and streamlined loan approval process.  The SBA awards PLP status only to lenders who have demonstrated their commitment to small business and have the ability to effectively serve their market.  To earn the PLP designation, lenders must establish a successful track record and display a thorough understanding of SBA lending policies and procedures.  There’s a reason we’ve been the region's #1 local small business lender for over a decade!

What is the purpose of the Small Business Administration (SBA)?

Congress created the Small Business Administration in 1953 to help America's entrepreneurs form successful small businesses. The SBA enables its lending partners to provide financing to small businesses on reasonable terms by guaranteeing major portions of loans made to small businesses.

Do I qualify for an SBA loan under the current guidelines?

Yes, if your business is:

• A for-profit organization (other loan programs are available for non-profit organizations)
• Independently owned
• Not exceeding the following maximum size standards:
• Manufacturing--varies by industry from 500 to 1,500 employees
• Wholesaling--up to 100 employees
• Service--varies by industry from $5.0 million to $25 million in revenue
• Commercial real estate must be 51% occupied by your business if you are purchasing the building, or; must be 60% occupied by your business if you are constructing the building

What are the advantages of an SBA loan?

The SBA loan program offers:

• Up to 90% loan to collateral value
• Longer repayment periods--up to 25-year terms for real estate
• No prepayment penalties for loans up to 15-year terms
• No balloon payments

What purposes can I use an SBA loan?

You can finance:

• Working Capital
• Inventory Purchase
• Machinery & Equipment
• Furniture & Fixtures
• Commercial Real Estate
• Purchase
• Improvements
• Construction
• Any combination of the above can be made as one loan
• Acquisition of an existing business

All project costs can be financed, including acquisition (land and building, land and construction of building, renovations, machinery and equipment) and soft costs such as title insurance, legal, appraisal, environmental and bridge loan fees. Closing costs may be financed.

What are the loan amounts and interest rates charged?

Our lending experts can make it easy for you to obtain the funding you need. We offer:

• Loans from $50,000 to $2,500,000
• Negotiable rates
• Adjustable and fixed rates

Interest rates vary depending on the type of SBA loan for which you are applying. Contact any of our experienced SBA lending professionals for more information.

Do I need to put up collateral to obtain an SBA loan? What is eligible?

Yes. Eligible collateral includes personal and/or business real estate; equipment, inventory, and accounts receivable; and personal guarantees of all major stockholders (20%+).

Collateral typically is assets financed, which allows other assets to be free of liens and available to secure other needed financing.

How long can I take to repay an SBA loan?

The following applies for repayment terms:

• Working Capital & Inventory--up to 7 years
• Machinery & Equipment--up to 10 years
• Commercial Real Estate--up to 25 years

A loan that combines two or more of the above purposes will have a weighted average maturity.

What would disqualify me for the SBA loan program?

If any of the following items apply to you, it will not be possible for you to obtain an SBA loan. However, there may be other reasons than listed below that would preclude you from obtaining an SBA loan, e.g., your business doesn't qualify as a small business. If you're unsure, contact a First Northern Bank SBA Lending Expert today.

Listed below are guidelines that could disqualify you for SBA financing:

• I am not a U.S. citizen and do not have an alien registration card.
• I do not independently own my business (the business has other owners who will not be part of the application).
• I own a not-for-profit business.
• My business exceeds the SBA size standards.
• My business (or proposed business) is engaged in gambling activities.
• I am currently on parole or probation.
• My loan would allow for speculation in any kind of property.
• My business engages in lending.
• My business is not available to the general public (enforces restrictive patronage).
• My business or I have defaulted on a previous Federal Government debt (including student loans).

How do I apply for an SBA loan from First Northern Bank?

Applying for an SBA Loan is easy at First Northern Bank, simply:

• Apply by contacting our Client Solutions Center at (877) 362-6000
• Stop by any First Northern Bank location for an application.

What else does the Bank need to begin my loan?

Along with the completed loan application, please bring or mail the following to one of our SBA Loan Offices:

• Current company financial statement--less than 45 days old
• Previous 3 years company financial statements and tax returns
• Personal financial statements and previous 3 years tax returns from all major stockholders (20%+)