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SBA & Government Guaranteed Loans

Fresno First Bank offers a wide range of government guaranteed business loans, including SBA guaranteed loans, SBA 504 loans, United States Department of Agriculture "USDA" loans, California Valley Small Business Development loans and other government loan programs. 

Many times new and growing businesses face financing challenges.  Government guaranteed loan programs can help qualified businesses obtain financing that might not otherwise qualify for a conventional bank loan many times with better terms than conventional bank financing.

There are many programs and options available and at Fresno First Bank we are happy to consult with you on a financing package that will best fit your needs. Contact Michael Fanucchi or Keith Wolaridge in Bakersfield, to discuss your business financing needs.        

Michael Fanucchi Keith C Wolaridge
(559) 348-5736 (661) 616-1370 ext 3370
 mfanucchi@FresnoFirstBank.com kwolaridge@FresnoFirstBank.com

 

Below you will find information on our most popular programs and visit our Frequently Asked Questions section below for answers to many commonly asked questions. 

SBA Loan Services

Both new and growing businesses face challenges that require unique lending solutions. That is why Fresno First Bank is committed to a strong relationship with the U.S. Small Business Administration (SBA).

There are a variety of financing options available and we can help you find the best solution to meet your specific needs.  SBA loans can be used to help finance a business acquisition, business expansion, provide working capital, fixed asset purchases and owner/user real estate loans.

As a community bank we provide local service, with local decisions, on all of loan products.  Below you will find additional information about various types of SBA and USDA loans we have available. 

SBA 7(a) Loans

This program provides loans up to $5 million for commercial real estate, equipment, working capital, and business acquisition and expansion.

  • Up to 90% owner-user financing available for commercial real estate
  • Fully amortized loans up to 25 years
  • Up to 100% financing on equipment purchases
  • Use to refinance existing business debt
  • Available to provide working capital
  • Purchase of equipment and inventory
  • Purchase, construction, or renovation of owner-use commercial real estate

SBA 504 Loans

This program provides loans up to $5 million dollars for commercial construction and real estate acquisition.

  • Up to 90% project financing on multi-use properties
  • As little as 10% cash down
  • Low fixed rates available
  • Fully amortized loans up to 25 years
  • Owner-user must occupy 51% of existing building or 60% for new construction

SBA Express Loans and Lines of Credit

The SBA Express Loan Program is designed to streamline the application process and provide accelerated turnaround time. In addition, lower interest rates are often available when you apply through an Express program.

  • Loans up to $350,000
  • Streamlines documentation and processing

 USDA B&I (Business and Industry) Loans

The B&I Guaranteed Loan Program is designed to improve, develop, or finance business and industry. The primary purpose is to maintain and increase employment and improve the economic climate in rural communities.  The B&I program allows loans up to $10 million and up to $40 million on rural cooperative organizations that process value-added agricultural commodities.

  • Terms up to 30 years fully amortized
  • Owner and non-owner occupied properties
  • Fixed and variable rate financing

The B&I program can help qualified businesses obtain financing that might not otherwise qualify for a conventional bank loan. Many USDA loans offer longer terms and in some cases a lower down payment which helps preserve working capital.

There are certain geographic restrictions related to the B&I program, however in the Central Valley many projects (not only agricultural related) qualify for B&I funding.  We can help determine if the B&I program would benefit your project.  Additional information and answers to Frequently Asked Questions can be found under the FAQ menu option.

 Valley Small Business Guaranteed Loans

Valley Small Business Development Corporation (“VSBDC”) is a non-profit, public benefit, small business development corporation operating under the California “State” Small Business Loan Guarantee Program. Their mission is to provide small businesses and family farms with increased access to capital.

Similar to an SBA or USDA guarantee, VSBDC provides a State guarantee of up to $1 million with terms up to 7 years for qualifying loans.  Fresno First Bank is a proud partner with VSBDC.

 

 

 

Frequently Asked Questions

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Why should I use an SBA or USDA loan?

The SBA and USDA loan programs can help qualified businesses obtain financing that might not otherwise qualify for a conventional bank loan. SBA and USDA loans offer longer terms and in some cases a lower down payment which helps preserve working capital.

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What types of businesses qualify for SBA loans?

Most for-profit small businesses are eligible for an SBA guaranteed loan. The most frequently used industries and criteria are:

  • Most retail and service businesses with 3 year average sales up to $6.5 million
  • Wholesale businesses with up to 100 employees, regardless of sales volume
  • Manufacturers with up to 500 employees, depending on the industry, regardless of sales volume

Most for-profit small businesses are eligible for an SBA guaranteed loan. The most frequently used industries and criteria are:

  • Most retail and service businesses with 3 year average sales up to $6.5 million
  • Wholesale businesses with up to 100 employees, regardless of sales volume
  • Manufacturers with up to 500 employees, depending on the industry, regardless of sales volume

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How long will the entire process take?

Processing time depends primarily on the transaction type and the completeness of the application. A commercial real estate purchase will generally take up to 60 days because it requires an appraisal, etc. However, a loan that is not as complex could close in 30 days. Typically an applicant can be pre-qualified by one of our experienced officers within a couple days, full credit approval is usually determined within a couple weeks.

Processing time depends primarily on the transaction type and the completeness of the application. A commercial real estate purchase will generally take up to 60 days because it requires an appraisal, etc. However, a loan that is not as complex could close in 30 days. As a Preferred Lender, SBA has authorized Fresno First Bank to make most of the lending decisions. Typically an applicant can be pre-qualified by one of our experienced officers within a couple days, full credit approval is usually determined within a couple weeks.

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What is SBA's role in the loan process?

The U.S. Small Business Administration (SBA) is a government agency that guarantees to lenders up to 85% of a loan made to qualified small businesses. The SBA's relationship is with the lender and is basically transparent to the borrower.  Loans are approved and funded directly by Fresno First Bank and the borrower only deals with Fresno First Bank for the entire term of the loan.

The U.S. Small Business Administration (SBA) is a government agency that guarantees to lenders up to 85% of a loan made to qualified small businesses. The SBA's relationship is with the lender and is basically transparent to the borrower. Fresno First Bank has been designated by the SBA as a Preferred Lender, which means they have delegated the authority to approve and process the entire loan without having to wait for SBA to review and approve. Loans are approved and funded directly by Fresno First Bank and the borrower only deals with Fresno First Bank for the entire term of the loan.

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What documentation will be required to get my loan started?

In addition to the Business Loan Application and Management Profile forms, you should also provide personal financial statements for all owners with 20% or more business ownership, a year-to-date business financial statement, 3 years tax returns for both business and personal, plus a summary of how the loan proceeds will be used. Additional documents may be necessary depending on the nature of the transaction, talking with one of our specialists' can quickly determine project specific items.

In addition to the Business Loan Application and Management Profile forms, you should also provide personal financial statements for all owners with 20% or more business ownership, a year-to-date business financial statement, 3 years tax returns for both business and personal, plus a summary of the loan proceeds. Additional documents may be necessary depending on the nature of the transaction, talking with one of our specialists' can quickly determine project specific items.

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What collateral is required for a Government Guaranteed loan?

We will generally look first to the business assets for collateral and, should that be insufficient, then we will look at the owner's personal assets to help collateralize the loan.

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B&I Loans - Who may borrow?

A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; a public body; or an individual. A borrower must be engaged in or proposing to engage in a business that will:

  • Provide employment;
  • Improve the economic or environmental climate;
  • Promote the conservation, development, and use of water for aquaculture; or
  • Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.

Individual borrowers must be citizens of the United States (U.S.) or reside in the U.S. after being legally admitted for permanent residence. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns.

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What types of projects are eligible for B&I funding?

  • Business and industrial acquisitions
  • Purchase of land, machinery and equipment
  • Construction, enlargement or  modernization
  • Eligible fees and costs
  • Educational or training facilities
  • Tourist facilities
  • Hotels/Motels
  • Pollution control or abatement
  • Recreation facilities
  • Working capital
  • Refinancing when it is determined that refinancing is necessary to improve cash flow and create new or save existing jobs.
  • Commercially available energy projects that produce biomass fuel or biogas.

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How may B&I funds be used?

Loan purposes must be consistent with the general purpose contained in the B&I regulation. They include but are not limited to the following:

  • Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities.
  • Business conversion, enlargement, repair, modernization, or development.
  • Purchase and development of land, easements, rights-of-way, buildings, or facilities.

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