SBA Loans
Small businesses are the engines of communities. We are here to provide flexible financing solutions that align with your business goals. Our commitment goes beyond numbers; it’s about understanding your journey and empowering your dreams.
What is an SBA loan?
A Small Business Administration (SBA) loan is a government-backed financing option. Compared to traditional small business loans, SBA loans have:
- lower down payments
- more affordable financing
- longer repayment terms
SBA loans make it easier for businesses to access the money they need to be successful.
Exploring SBA loan options
At M&F Bank, we offer the SBA 504 loan and the SBA 7(a) loan. Each loan addresses different needs and has different requirements.
SBA 504 Loan*
The SBA 504 loan offers fixed-rate, long-term financing of up to $5 million, and you can use funds to acquire major fixed assets, purchase land or buildings, or invest in long-term machinery and equipment. You can also modernize existing facilities or improve landscaping, streets, and parking lots.
SBA 504 Loan Eligibility
To qualify for the SBA 504 Loan, your business should operate for profit in the United States, have a net worth under $15 million, and maintain a net income below $5 million for the preceding two years.
*The SBA 504 Loan is not intended for:
- Working capital or inventory
- Consolidating, repaying, or refinancing debt
- Speculation or investment in rental real estate
SBA 7(a) Loan**
Innovation and expansion require a solid financial foundation. That’s where The SBA 7(a) loan is available in loan amounts from $150,000 to $5 million. Whether you’re looking to refinance corporate debt, purchase furniture, or buy real estate, the SBA 7(a) loan can help you get it done.
Additional SBA 7(a) Loan purposes
- 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 of a new building or renovation of 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
SBA 7(a) Loan Eligibility
To be eligible for an SBA 7(a) Loan, your business must:
- Operate for profit
- Be considered a small business, as defined by the SBA
- Be engaged in, or propose to do business in, the United States
- 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
**Please note that some businesses may not be eligible for a 7(a) loan, especially if you have been delinquent on any existing debt obligations to the U.S. government. To learn more about ineligible businesses, see here.
Empowering Growth as a Preferred Lender
The U.S. Small Business Administration (SBA) has recognized M&F Bank as a Preferred Lender.
As an M&F Bank customer, this means faster access to the financing you need to support your business. Whether you’re a small business owner looking for guidance or a seasoned entrepreneur looking to expand, M&F Bank is here to support you every step of the way. With our PLP status, you can trust that we’ll provide personalized service and tailored solutions to help you achieve your goals.
Contact us to meet with a lender today!
Baylor Pait
SBA Business Development Officer
+1 (919) 536-7503
Baylor Pait serves as an SBA Business Development Officer for M&F Bank, helping small business owners nationwide get the capital they need to succeed financially. He has multiple years of experience in the SBA sector, which allows him to provide a unique insight into the SBA lending process and how to serve his clients best.
Dedicated to helping serve small businesses with the support of the SBA program, Baylor takes a hands-on approach with his borrowers and referral partners. He understands the intricacies of SBA rules and regulations and guides his clients every step of the way while delivering exceptional customer service, transparency, and time-efficient processes.