SMALL BUSINESS LENDING (SBA)

SBA Lending

First Oklahoma Bank has a long history of partnering with the Small Business Administration (SBA). SBA's 7(a) loan program is the program First Oklahoma Bank most commonly uses. This program gives loans to eligible borrowers for starting, acquiring, and/or expanding a small business. The parameters of an SBA 7(a) loan are as follows:

Who Qualifies The business must be for-profit and meet SBA standards. The business must show good character, credit, management, and ability to repay.
Eligible Businesses Examples of eligible businesses include storage facilities; private medical facilities and equipment needs for dentists, optometrists, ophthalmologists, urgent cares, etc.; funeral homes; pharmacies; heavy equipment; franchises; nursing homes; owner occupied commercial real estate; veterinarian practices; jewelry stores; technology; landscaping; attorneys; florists; vending; transportation; manufacturing; life insurance independent agents.
Ineligible Businesses Examples of ineligible businesses include non-profits; passive holders of real estate; life insurance companies; pyramid sales; gambling; businesses restricting patronage; religious organizations; cooperatives; prior loss to government; political or lobbying activities; speculation; finance companies; investment companies.
Maximum Loan Amount $5 million gross
Percent of Guarantee 85% guarantee for loans of $150,000 or less; 75% guarantee for loans greater than $150,000
Maturity Maturity depends on ability to repay, the type of collateral pledged to support the loan, and the credit worthiness of the borrower.
Maximum Interest Rates Interest rates are normally variable in relationship to the Wall Street Journal prime rate and between prime + 1% and prime + 2.5% depending on the total circumstances of the borrower and nature of the loan.
Benefits to Borrowers Benefits include long-term financing, improved cash flow, fixed maturity, and no balloons. The SBA does not require the loan to be fully collateralized. Packing of $1,500 to $2,500 is generally much less than traditional loan fees.

For more information on SBA loans, call one of our commercial lenders at 918-392-2500 or contact us online.