Small Business Loans

Businesses like yours are the backbone of our local economy. Prosper with government-backed financing from your community bank.
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At Security Federal Bank, we understand the importance of small businesses to our communities. That's why we offer a range of small business loans tailored to your needs. Explore our options for small business federal loans and learn about SBA loan eligibility to find the right solution for your business. Our dedicated team is here to guide you through the process and help you secure the funding you need to succeed.

SBA- 7(A)

For borrowers who need funds to expand, purchase another business or manage cash flow.

Use of Funds:
  • Purchase of owner-occupied commercial real estate, machinery and equipment
  • Working capital and inventory
  • Business acquisition
  • Debt consolidations, refinancing, franchise or start-up financing
  • Loan to value up to 90%
  • Loan amounts up to $5,000,000
  • Longer maturities1 up to:
    • 20 years on commercial real estate
    • 10 years on working capital, equipment, and general business purposes
    • Fully amortizing (no ballon payments)

SBA- 504

For growing businesses and their commercial real estate and/or heavy machinery needs.

Use of Funds:
  • Acquisition, building, renovation or expansion of owner-occupied commercial real estate
  • Financing of equipment and machinery
  • Loan to value up to 90%
  • Lower down payments than conventional loans
  • Below-market, long-term, fixed interest rates
  • Up to 20-year amortization for commercial real estate or machinery and equipment financing with a useful life of 10 years or longer

SBA Loan Eligibility

  • Own/operate a for-profit business in the United States
  • Be a small business, as defined by the SBA
  • No delinquencies on any existing debt obligations to the U.S. government
  • Must be at least 51% owned by a US citizen or legal permanent resident

USDA Loans

  • Government-assisted financing for rural, non-profit and for-profit businesses
  • Competitive rates for a variety of business needs:
    • Business and industrial projects
    • Acquisitions
    • Refinancing
    • Construction
    • Modernization
    • Expansion
    • Purchase of equipment, machinery, and supplies
  • Loan amounts range from $1 million to $20 million or more
  • Flexible terms to fit your budget
  • Local decision-making and processing
  • Friendly, professional service from start to finish

1Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.