SBA Loans

Fairfield County Bank and Ridgefield Bank, a division of Fairfield County Bank, are committed to helping small businesses prosper and grow.  Our special designation as a "Certified Lender" from the Small Business Administration (SBA) enables us to significantly reduce the processing time of SBA financing for your business.  Our experienced SBA Loan Specialists can advise you on a wide range of SBA programs, guide you through the entire loan process and provide you with a full array of other business banking options.

What is an SBA Loan?
An SBA Loan is guaranteed by the U.S. Small Business Administration that participates with banks in assisting small businesses with their growth and expansion plans.  It enables entrepreneurs to obtain long-term credit on reasonable terms and conditions that otherwise would not be available.

Eligibility
To be eligible for SBA financing, a business must be operated for profit and meet the size standards set by the SBA.  The SBA determines if the business qualifies as a small business based on the average number of employees during the preceding 12 months or on sales averaged over the previous three years.

Maximum size standards:

• Manufacturing – from 500 to 1,500 employees, depending on the industry
• Wholesaling – 100 employees for financial-assistance programs; 500 for contracting-assistance programs
• Services – from $4.0 million to $29 million in average annual receipts, depending on the service
• Retailing – from $6 million to $24.5 million, depending on the nature of the business
• General construction – from $17 million to $28.5 million
• Special trade construction – average annual receipts not to exceed $12 million
• Agriculture – from $750,000 to $10.5 million

Note:  Ineligible businesses include those that are engaged in lending, real estate development, pyramid schemes, gambling, illegal operations, speculation or investment.  Charitable, religious and non-profits are also not eligible.

SBA Loan Options
7(a) Loans
SBAExpress Loans
504 Loans
SBA Loan Comparison Chart

7(a) Loans

• Offers term loans and commercial mortgages up to
  $2 million.
• Ideal for expansion or renovation; construction of new facility; purchase land or buildings; purchase new equipment, fixtures, leasehold improvements; working capital; refinance certain types of debt, inventory acquisition.
• Terms offered:
  • Working capital: 5 to 10 years
  • Equipment: 7 to 10 years
  • Real Estate: 15 to 25 years

SBAExpress Loans

• Offers financing up to $350,000.
• Provides access to SBA loan products including small business loans, lines of credit and mortgages
• The bank uses its own documentation and analysis with reduced documentation to make the decision without requiring the SBA’s review  
• Ideal for expansion or renovation; construction of new facility; purchase land or buildings; purchase new equipment, fixtures, leasehold improvements; working capital; refinance certain types of debt, inventory acquisition.
• Terms offered:
  • Working capital: 5 to 10 years
  • Equipment: 7 to 10 years
  • Real Estate: 15 to 25 years
  • Revolving Lines of Credit: Up to 7 years

504 Loans

• Low fixed rate financing for total project costs up to approximately $4 million.
• The Bank will provide a first mortgage for 50% of the project costs; the SBA will provide a second mortgage for 40% of the project cost, and the Borrower will provide 10% of the project cost.  The SBA portion cannot exceed $1 million.
• Provides long-term financing for fixed-asset projects such as acquire real estate; construction/renovation of facilities; purchase new machinery and equipment
• May not be used for working capital or inventory or to refinance/consolidate/repay debt
• Architectural and engineering costs can be financed reducing the number of financial stresses to the project budget.
• 10 to 20 year terms allow for lower payments enabling a business to cover large debt amounts

Interest Rates
Fixed and variable interest rate programs are offered.  See the SBA Loan Comparison Chart for details.

SBA Guarantee
The SBA guarantee varies according to loan program.  See the SBA Loan Comparison Chart for details.

Requirements
Past experience in the industry and the ability of management to successfully run a small business are required.  If the loan is for a new business venture where historical results are not available, a feasible business plan needs to accompany the loan application.  In addition, the requested business loan needs to be supported with a historical or projected cash flow providing adequate repayment of the loan.

To learn more about our SBA Loan programs, contact us at (203) 431-7455 or toll-free at 1-800-776-6518.

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