Small Business Administration (SBA) Loans
We support our local small businesses — and as a local small business ourselves, we understand some of the challenges they face.
That’s why we offer this alternative funding option for businesses that may not qualify for other loans. Our SBA loans offer government-assisted financing with the friendly, local service of Newton Federal Bank lending professionals.
- Government-assisted financing for qualifying businesses
- Ideal for:
- Existing businesses (purchasing or refinancing)
- Businesses that may have difficulty getting approval for other loans
- Finance a wide range of business needs:
- Commercial real estate
- Business acquisition or expansion
- Working capital
- And more!
- SBA 7(a) and SBA 504 programs available
- Generally lower down payments and extended terms
- Additional considerations taken when deciding maturity*
- Competitive rates
- Attentive, professional service every step of the way
- Local decision-making and processing
SBA 7(a) loans can be used for nearly any business purpose. This includes commercial owner-occupied real estate, construction or renovation for owner-users, business acquisition and start-up, refinancing for existing debt, equipment purchases, working capital and inventory.
- Competitive rates and down payments as low as 10%
- Quick approval and fast closings on loan amounts to $2 million
- Low monthly payments with up to 25-year amortizations available
As a non-profit set up to contribute to its community’s economic development, a Certified Development Company (CDC) works with the SBA and private sector lenders to provide financing to small businesses. The 504 CDC Program provides growing businesses with long-term, fixed-rate financing for major fixed assets such as land and buildings.
SBA 504 loans are typically secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the small business being helped.
- Must be used for fixed asset projects such as purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities.
- Can also be used for modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment.
- Cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.