SBA Loan Programs

SBA Loan Programs

If you’re starting a new business or you’re ready to improve or expand your existing business and searching for funding, then you’ll want to understand what an SBA loan is. It is a term that gets confused with its connection to a government entity, the Small Business Administration (SBA).

The SBA partially guarantees SBA loans, thereby eliminating some of the risks for the financial institution that is issuing the loan. And it is not the SBA who is doing the lending. The SBA works collaboratively with a network of approved financial institutions to offer SBA loans to small businesses with better terms.

An SBA loan offers numerous advantages to borrowers over conventional financing, including: 

  • Lower down payment to conserve cash for your business
  • Longer terms – up to seven (7) years for working capital, ten (10) years for equipment, and 25 years for real estate
  • Lower monthly loan payment
  • Long-term, fully-amortizing terms – no balloon
  • Flexible collateral requirements
  • Loan amounts up to $5 million

21st Century Bank is one of a select group of SBA Preferred Lenders, consistently ranking in the top 10 for Minnesota Lenders.

Benefits of working with an SBA Preferred Lender:

  • In-house approval for quick turnaround
  • Dedication to serving the small to mid-size business community
  • The expertise and wide range of tools that benefit all of your financial needs

21st Century Bank is one of a select group of SBA Preferred Lenders, consistently ranking in the top 10 for Minnesota Lenders.

Benefits of working with an SBA Preferred Lender:

  • In-house approval for quick turnaround
  • Dedication to serving the small to mid-size business community
  • The expertise and wide range of tools that benefit all of your financial needs

Customer and Product Stories

We are a proven local lender!

We are proud recipients of 2017, U.S. Small Business Administration (SBA) Minnesota Lenders Award for our personalized approach to helping local businesses succeed, noted for our commitment, hard work, sound business knowledge, and advice. Along with tailored services to help companies to reach their goals.

We rank among the top five lenders in the state!

In FY2019, we are number one in SBA 504 loans for the second year, ranked number one is total SBA project dollars, and number three in overall combined SBA 7(a) and SBA 504 loans.

Learn first-hand how Bev Source and E & M Manufacturing worked in partnership with 21st Century Bank to position their small business for long-term success. For more information on how an SBA loan program can benefit your small business, contact a lender in your area.

SBA 7(a) Program

The SBA 7(a) Loan Program lets you get loan amounts (up to $5 million) to fund startup costs, buy equipment and more. The program offers the most flexible and longest-term loans and may be used for everything from start-up and real estate to working capital and equipment. Here’s what else you can do with SBA 7(a) funds: purchase new land (including construction costs); repair existing capital; purchase or expand an existing business; refinance existing debt; purchase machinery, furniture, fixtures, supplies or materials.

SBA 504 Program

If you’re looking to expand or modernize your small business, the SBA 504 Loan Program may be a viable option. The program is designed to help small businesses grow; funds can be used to make purchases for real estate and equipment. It provides long-term financing with low down payment options. SBA 504 Loan funds can be used to: purchase land; purchase existing buildings; purchase long-term machinery and equipment; purchase improvements (including grading, street improvements, utilities, parking lots and landscaping); build new facilities or modernize, renovate or convert existing facilities. The SBA 504 loan cannot be used for: working capital or inventory; consolidating, repaying or refinancing debt (although for a portion of the project, you may refinance debt associated with buying or renovating equipment or facilities); or speculation or investment in rental real estate property.

SBA Express Program

Provides working capital lines of credit for manufacturing, wholesale, services, and retail businesses. May be used to finance inventory, accounts receivable and more.

SBA Loan Checklist

The following is a list of information typically required during the loan process:

  • Personal & Business Federal Tax Returns – for the last 3 years with all supporting schedules (Required on all guarantors and/or all individuals who own 20% or more of the business)
  • If the loan is for an existing business – Year-to-Date Balance sheet and Profit & Loss statement are required. (Must be dated within 90 days of application).
  • 2-Year Projection of Earnings – (required if less than 3 years of historical statements are available)
  • Accounts Receivable and Accounts Payable Aging Reports –may be asked at the banks discretion depending on use of proceeds and collateral offered
  • If any owner/borrower has a controlling interest in another business, 3 years of financial information must be submitted on each affiliate entity
  • For a Franchise purchase include Uniform Franchise Offering Circular (UFOC)
  • Purchase Agreement (applies only to acquisitions or real estate purchases)
  • For a list of specific information/application needed, talk to a lender
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