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Small Business Administration (SBA) Loans

Are you planning to start or buy a business? Do you want to expand your existing business by purchasing equipment, buying real estate, or increasing working capital? First National Bank's experienced staff offers a variety of SBA loans. We can help you find the best loan for your needs.

Frequently Asked Questions:


Am I eligible for a SBA loan?

Most businesses are eligible. The eligibility requirements are designed to be as broad as possible in order to accommodate the most diverse variety of small business financing needs. In most cases, to be considered for financing under SBA's loan programs your business must: meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment.

How can I use the loan proceeds?

Funds can be used for financing accounts receivable and inventory, purchasing machinery and equipment, purchasing and/or improving real estate, and purchasing or starting a business. The loan proceeds generally shouldn't be used to refinance existing debt that already has reasonable terms. Any debt refinancing should improve cash flow by more than 20% and/or create cash flow improvements that will allow for the hiring of new staff, purchasing assets, etc.

How fast can I get the loan money?

It depends on the type of SBA program used. Our experienced staff will help you determine which program best suits your needs and will process your application as quickly as possible. Please call (515) 232-5561 in Ames or (515) 965-3969 in Ankeny for more details.

What fees will I have to pay?

To offset the costs of the SBA's loan programs to the taxpayer, the SBA charges a guaranty fee. This fee varies depending upon the SBA funding option. This fee, along with any other costs (e.g. appraisal, mortgage filing fees, etc.) will be paid by the borrower at loan closing.

How do I receive more information on SBA and other small business loans?

Please call First National Bank at (515) 232-5561 in Ames or (515) 965-3969 in Ankeny. You may also find useful information on SBA's website.

Putting together a business plan is an important part of planning for success. The ISU Small Business Development Center (SBDC) offers a series of workshops called Smart Start Workshops that many entrepreneurs have found extremely helpful in moving their ideas into reality. The SBDC is also a great resource to assist you in preparing your business plan. Contact Mike Upah at 515-296-7828 to learn more.

 

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