Small Business Loans

What is the Small Business Administration?

The SBA is an independent agency of the federal government solely devoted to small businesses in the U.S. The purpose of the SBA is to aid, counsel, assist and protect the interests of small business concerns. The SBA helps small businesses through:

• Access to Capital
• Entrepreneurial Development
• Contracting
• Advocacy

What is an SBA 7(a) loan?

F&M Bank is an authorized SBA Express Lender. SBA Express loans are the standard form of Express loan available to eligible small businesses operating in the U.S. or its territories. Approval times are much shorter than for most SBA loans, with the SBA responding to applications within 36 hours. Loans are available up to $500,000, with up to 50% backed by the SBA.

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for: 

• Short- and long-term working capital 
• Refinance current business debt 
• Purchase furniture, fixtures, and supplies 

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.

Am I eligible for a SBA 7(a) loan?

To be eligible for 7(a) loan assistance, businesses must:

• Operate for profit 
• Be considered a small business, as defined by SBA 
• Be engaged in, or propose to do business in, the United States or its possessions 
• Have reasonable invested equity 
• Use alternative financial resources, including personal assets, before seeking financial assistance 
• Be able to demonstrate a need for a loan 
• Use the funds for a sound business purpose 
• Not be delinquent on any existing debt obligations to the U.S. government 

Some businesses may not qualify for a 7(a) loan. Read more about Terms, conditions, and eligibility.

How do I use the 7(a) loan?

Basic uses for the 7(a) loan include: 

• Long- and short-term working capital 
• Revolving funds based on the value of existing inventory and receivables 
• The purchase of equipment, machinery, furniture, fixtures, supplies, or materials 
• The purchase of real estate, including land and buildings 
• The construction a new building or renovation an existing building 
• Establishing a new business or assisting in the acquisition, operation or expansion of an existing business 
• Refinancing existing business debt, under certain conditions

What is the SBA 504 loan program?

The CDC/504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.

The maximum loan amount for a 504 loan is $5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

How do I use a 504 loan?

A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of: 

• Existing buildings or land 
• New facilities 
• Long-term machinery and equipment

Or the improvement or modernization of: 

• Land, streets, utilities, parking lots and landscaping 
• Existing facilities 

A 504 loan cannot be used for: 

• Working capital or inventory 
• Consolidating, repaying or refinancing debt 
• Speculation or investment in rental real estate

Apply for an SBA Small Business Loan!

Fill out our online form to request info on our SBA loans or visit your nearest branch location in Edmond, Yukon, Guthrie, Kingfisher, Piedmont, or Crescent, OK. You can expect friendly service and quick loan decisions made locally. As a family-owned bank for three generations and counting, F&M Bank has deep roots in our community. We are dedicated to helping local small businesses thrive because they are the engines fueling growth and prosperity in our region.