Loans for Businesses > SBA Loans
Every business is unique, so is our financing
At Choice, we recognize small businesses impact the culture and economy from our local communities to nationally. An SBA (Small Business Administration) loan can provide the long-term funding you need to take your small business to the next level.
Loans guaranteed by SBA range from small to large and can be used for most business purposes, including long-term fixed assets and operating capital. As your SBA Preferred Lender, our lending experts will match you to the right loan for your business needs.
As an SBA Preferred Lender (PLP) in Minnesota and North Dakota, Choice Bank has the authority to approve, originate, and close most SBA guaranteed loans, which means you get your funds faster. At Choice Bank, our local experts provide quick and personal responses.
Local people, local decisions. It’s our #PeopleFirst way of serving our customers and community.
Who Can Benefit from an SBA Loan?
Change of Ownership: Partner Buyout and Business Acquisitions
Regardless of the type of transition, changes of ownership are often under-collateralized transactions. SBA lending helps provide the credit enhancement needed.
Businesses Seeking More Favorable Loan Terms
SBA loans can often be obtained for longer terms and smaller down payments than conventional financing. This helps small businesses preserve capital for future growth or projects.
Lacking in history, start-up businesses can be difficult to finance. But with a strong business plan, projections, and industry experience SBA lending offers a solution.
Growing & Expanding Businesses
SBA programs are perfect for businesses expanding or experiencing growth. They can be used to expand into additional locations, hire staff, purchase the equipment, or long-term working capital needed.
Businesses Lacking in Collateral
Retail, service, and other businesses without significant collateral can be challenging to finance; SBA lending may be utilized in these situations.
Businesses Facing Unique Challenges
Businesses have ups and downs. At Choice Bank, we help our borrowers through challenging times. SBA lending can provide that bridge when conventional lending isn’t an option.
SBA 7a Loans
- $5,000,000 maximum loan size to borrower and its affiliates
- Most versatile of the 7a programs and can be used for a wide variety of business purposes:Business acquisitions and partner buyouts
- Business expansion
- Working capital
- Refinance/Restructure existing business debt
- Purchase real estate
- Purchase machinery and equipment
- Leasehold improvements
- No prepayment penalty unless the term is 15 years or more
SBA Express Loans and Lines of Credit
- Term loans and Lines of credit up to $350,000
- Can be used for:Working capital
- EquipmentLeasehold improvements
SBA 504 Loan
- Funds long-term fixed asset loans (real estate and large equipment)
- Acquisition projects of $12,500,000*
- Provided in conjunction with an SBA Certified Development Company
- Typical structure:50% of project financed by Choice Bank non-guaranteed loan
- 40% of project financed by SBA up to a maximum of $5 million*
- 10% equity from borrower
- Start-ups and special use properties require additional equity from the borrower
- Refinance/Restructure Existing Real Estate Debts
- Favorable rates
*Larger projects in some cases
Working Capital CAPline
- Used for short-term working capital/operating needs
- Often secured only with accounts receivable and inventory
- May not be used to acquire fixed assets
- Will be managed on a borrowing base/Repayment comes from sales of inventory and collection of receivables
- Used for seasonal increases in accounts receivable and Inventory
- Pay down to zero at the end of the seasonal cycle
- Used for direct expenses related to the construction and/or “substantial” renovation costs of residential or commercial buildings for resale.
- Requires a first or second lien on the property
- Used for the materials and labor associated with contracts
- Often requires an assignment of the contract proceeds
- Must be able to demonstrate ability to operate profitably based upon the completion of similar contracts in the past
Talk to our SBA Lending Team
Give us a few details about your business and our SBA Lending Team will reach out to you shortly.