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SBA 504 Program

The 504 Loan Program offers you an attractive loan alternative that will give you the financing you need to expand and compete in the marketplace. If your company is planning to purchase, construct, or improve fixed assets, you may qualify. Possible projects include acquisition of land and buildings, construction and renovation, and the purchase of machinery/equipment.

First American Bank and the SBA work together to finance the loan, with the following requirements:

  • First American Bank lends up to 50% of the funding needed
  • The SBA lends up to 40% of the funding needed – to a maximum of $5.5 million
  • Your company provides a minimum of 10% of the funding needed

The benefits to your business include:

  • Low down-payment of as little as 10% makes it easier to conserve your company’s operating capital
  • Below market interest rates, fixed for up to 20 years, giving you a competitive edge
  • Long-term repayment of 10 to 20 years, depending upon assets financed, provides more opportunity for growth

Eligibility requirements:

  • Proposed property must be either occupied by your business or by a tenant who is eligible under SBA rules. Both you and your tenant must be eligible and both must be obligated or guarantee the debt
  • Project must promote economic development
  • Your business must be for-profit and average less than $5 million in annual profits and $15 million in net worth
  • Investment and residential properties do not qualify
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