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State Bank Small Business Lending

State Bank understands how vital growing businesses are to fueling local economies in the communities where we live and work.

But not all businesses qualify for conventional business loans. That’s why we offer government-guaranteed Small Business Administration (SBA) loans. Our experience with processing and servicing SBA-guaranteed loans has earned us the designation as a Preferred SBA Lender, allowing us to speed up the loan approval process significantly.

  • SBA Loan Types

    • SBA 504

      Use it for

      Purchasing real estate, improvements and equipment (no refinancing)

      Construction and renovation

      Benefits

      Highest loan amounts

      Long-term options

      Low down payment requirements

      Amount

      No maximum

      Terms

      Up to 2 years interim construction period

      7-10 years on equipment

      10-20 years for real estate

    • SBA 7(a)

      Use it for

      Purchasing or expanding a business

      Purchasing equipment or inventory

      Working capital

      Refinancing debt

      Benefits

      Most versatile SBA loan program

      Flexible terms

      Low down payment requirements

      Amount

      Up to $5 million

      Terms

      Up to 7 years for working capital

      Up to 10 years for equipment or business acquisition

      Up to 25 years for real estate

    • SBA Express

      Use it for

      Working capital

      Purchasing equipment

      Purchasing vehicles or inventory

      Benefits

      Reduced eligibility documentation requirements

      Accelerated processing

      Long-term options

      Low down payment requirements

      Amount

      Up to $350,000

      Terms

      Up to 7 years for working capital

      Term loans up to 25 years

    • CAPLines

      Use it for

      Short-term and cyclical working capital

      Benefits

      Can increase as your business grows

      Supports seasonal buildup of A/R and inventory

      Amount

      Up to $5 million

      Terms

      Initial 13 months with option for renewal

  • Things to Know

    Understanding more about loans backed by the Small Business Administration can help you decide if it is the right fit for your business.

    1. The SBA does not engage in direct lending. The SBA offers a variety of loan programs for very specific purposes. To apply for an SBA loan, you must do so through a bank and not through the SBA itself. The bank provides the actual loan while the SBA guarantees a portion of that loan. In effect, the SBA is serving as a co-singer, which in turn helps banks provide more flexible terms to borrowers.
    2. Not all banks offer the same SBA programs. The SBA has several loan programs, including 7(a) for general small business loans, 504 for real estate and equipment loans, microloans, and disaster loans. An SBA loan must first be approved by the issuing bank, which may choose which programs to offer. Additionally, the lending requirements for any given SBA loan may vary from bank to bank.
    3. SBA loan programs are not just for new businesses. The SBA exists to provide small businesses with financial assistance programs that have been specifically designed to meet key financing needs, including debt financing and surety bonds. While it’s true that many entrepreneurs and new businesses look to the SBA for financing, many established businesses also take advantage of SBA-backed lending.
    4. An SBA loan requires additional paperwork. Applying for an SBA loan means you need to provide paperwork to both the issuing bank and the SBA. In addition to the documentation that State Bank requires, the SBA typically requires 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 designed to help borrowers who may not meet the lending standards set by most banks. These can include issues 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

    • 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 State Bank, not from the SBA directly. State Bank works with the SBA to provide loans to small business customers.

    • SBA loans from State Bank are for businesses that are:

      1. Owner-operated
      2. For profit
      3. Legally organized (as a sole proprietorship, partnership, limited liability company, or corporation)
      4. Within the size guidelines designated by the SBA
      5. Generally unable to receive conventional credit under reasonable terms
    • No. State Bank also provides SBA loans to established businesses so they can grow and expand.

    • A conventional business loan from State 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 State 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 State Bank. As a result, State Bank can take on more risk and provide more flexible terms to the borrower.

    • 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.

    • Yes. As an SBA Preferred Lender, State Bank has expanded authority to make credit decisions, ultimately providing faster approvals to borrowers.

SBA 504 SBA 7(a) SBA Express CAPLines
Use it for

Purchasing real estate, improvements and equipment (no refinancing)

Construction and renovation

Purchasing or expanding a business

Purchasing equipment or inventory

Working capital

Refinancing debt

Working capital

Purchasing equipment

Purchasing vehicles or inventory

Short-term and cyclical working capital

Benefits

Highest loan amounts

Long-term options

Low down payment requirements

Most versatile SBA loan program

Flexible terms

Low down payment requirements

Reduced eligibility documentation requirements

Accelerated processing

Long-term options

Low down payment requirements

Can increase as your business grows

Supports seasonal buildup of A/R and inventory

Amount

No maximum

Up to $5 million

Up to $350,000

Up to $5 million

Terms

Up to 2 years interim construction period

7-10 years on equipment

10-20 years for real estate

Up to 7 years for working capital

Up to 10 years for equipment or business acquisition

Up to 25 years for real estate

Up to 7 years for working capital

Term loans up to 25 years

Initial 13 months with option for renewal