Small Business Loans (SBA)

First Oklahoma has a long history of partnering with the Small Business Administration (SBA). SBA’s 7(a) loan program is what First Oklahoma most commonly uses. This program loans to eligible borrowers for starting, acquiring, and/or expanding a small business. 

The business must be for-profit and meet SBA standards. The business must show good character, credit, management, and ability to repay.

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.

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.

$5 million gross

85% guarantee for loans of $150,000 or less; 75% guarantee for loans greater than $150,000

Maturity depends on ability to repay, the type of collateral pledged to support the loan, and the credit worthiness of the borrower.

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 include long-term financing, improved cash flow, fixed maturity, and no balloon payments. The SBA does not require the loan to be fully collateralized. Packaging fees of $1,500 to $2,500 is generally much less than traditional loan fees.

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