Small Business Administration (SBA) Loans

A Small Business Administration (SBA) loan may be the best solution for your business if your growth plans include expanding, acquiring or starting a business, purchasing an existing business, acquiring or renovating commercial real estate, or financing equipment, inventory or working capital.

With our preferred-lender status within the SBA, our team can work with you to finance your growth. Our team has more than 55 years of SBA lending experience and is committed to understanding your goals and partnering with you to make them a reality. We can help you choose the correct type of SBA Loan that serves your specific goals and needs.

“This past year in a COVID world, First Commonwealth has successfully pivoted responsibilities to deliver unprecedented support to many small businesses. To see this is in action was quite an experience; albeit admittedly one I do not want to go through again. For your part, I say thank you for your continued help to the true heartbeat of America.” Michael J. Reed, CPA, ABV, CFF, CFE, CEIV, Managing Director, LCG Advisors

The Small Business Administration (SBA) recognizes that small business is critical to our economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace.

Each state also offers help for small businesses through the Small Business Development Centers. For more information, go online to:

What Is an SBA Loan?

An SBA loan is a loan for small businesses in which a portion of the principal is guaranteed by the federal government through the Small Business Administration (SBA). The SBA doesn't lend money directly to business owners. Instead, a lender who works with the SBA provides the funds.

As a borrower, you pay the lender — not the SBA — and the bank closes your loan, disburses the proceeds and services your loan. The SBA's role in the process is to guarantee a portion of the loan to incentivize lenders to make loans they would not make under conventional methods.

Small businesses use SBA loans for all types of needs, including:

• Expansion
• Real estate purchase or refinance
• Business acquisition
• Equipment purchase
• Debt refinancing

Types of SBA Loans

The SBA offers several loan programs, including:

• SBA 7(a) loans: The 7(a) loan is the SBA's primary program for small businesses. Small business owners often use this loan to free up working capital or purchase inventory, business essentials and equipment.
• CDC/SBA 504 loans: The 504 program provides small businesses with fixed-rate, long-term financing to acquire assets for expansion or modernization. These loans are available through Certified Development Companies (CDCs) — the SBA's community-based partners.
• SBA CAPLines lines of credit: CAPLines is an umbrella program that uses various lines of credit features to help small businesses meet their short-term and working-capital needs.
• SBA Export loans: The Export program gives lenders and exporters a simplified way to get SBA-backed financing for lines of credit and loans up to $500,000.

SBA funding for women-owned businesses: The SBA offers loan programs to support women-owned businesses, coordinated by the Office of Women’s Business Ownership (OWBO).