504 Loan Program

Below-market rates reduce equipment and real estate costs

The 504 Loan Program is specifically designed to help small businesses expand and modernize. First American Bank and the Small Business Administration (SBA) combine to offer low-cost financing that can be used to acquire land and buildings, cover construction and renovation costs, and finance machinery and equipment purchases.

• 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
• Down payment of as little as 10% makes it easier to conserve your company’s operating capital
• SBA-issued bond allows for below-market rates
• Long-term repayment of 10, 20 or 25 years, depending upon assets financed

• Proposed property must be occupied by your business or a tenant eligible under SBA rules
• Project must promote economic development
• Your business must average less than $5 million in annual profits and $15 million in net worth
• Investment and residential properties do not qualify