SBA 504 Loan at FirstBank Holding Co.

The SBA 504 loan program at FirstBank Holding Co. is designed to help established small businesses acquire long-term, fixed-rate financing for major fixed assets that promote growth and job creation. Ideal for owner-occupied commercial real estate and heavy equipment purchases, the 504 structure blends competitive bank financing with a low-down-payment government-backed component to reduce borrower equity requirements and extend amortization for manageable monthly payments.

Key Features

• Financing structure typically includes a conventional first mortgage from FirstBank, a CDC/SBA-backed second mortgage covering up to 40% of project costs, and a borrower down payment usually around 10%.
• Long-term, fixed-rate financing for the SBA/CDC portion—commonly amortized up to 25 years for real estate—helps stabilize cash flow and reduce interest-rate risk.
• Low equity requirement preserves working capital, allowing businesses to invest in operations and growth while acquiring important fixed assets.
• Flexible uses include purchase of land and buildings, new construction, renovation and retrofit, and long-term machinery and equipment integral to the business.
• Potential for lower monthly payments compared to conventional commercial loans due to extended amortization and low down payment.

Benefits for Small Businesses

FirstBank’s SBA 504 offering combines the strengths of local banking expertise with a proven federal lending tool to support job creation and community investment. Benefits include:

• Preserved capital: Lower down payment requirements mean more cash remains available for working capital, inventory, hiring, or marketing.
• Predictable payments: The fixed-rate CDC portion locks in long-term stability for a significant component of project financing.
• Enhanced borrowing capacity: The blended structure can allow businesses to pursue larger projects than might be possible with conventional lending alone.
• Local service: FirstBank provides personalized underwriting and project management, coordinating closely with a Certified Development Company (CDC) to streamline processing.
• Support for growth: By financing real estate and equipment, businesses can expand operations, improve facilities, and increase competitiveness.

Typical Uses of Proceeds

SBA 504 proceeds are intended for long-lived assets that remain essential to a business’s operations. Common project types include:

• Acquisition of owner-occupied commercial real estate or land
• New construction and building expansion
• Renovation, modernization, or energy-efficiency upgrades
• Purchase of heavy machinery and equipment with long useful lives
• Refinancing of debt in certain circumstances when there is a significant public policy benefit

Eligibility Overview

Eligibility for an SBA 504 loan typically requires that a business meet SBA small business size standards and demonstrate capacity to repay. Primary considerations include:

• Business must be for-profit and operate in the United States or its territories.
• Project must create or retain jobs or meet community development objectives in some cases.
• At least 51% owner-occupancy is generally required for existing buildings; 60% or higher for special-use properties, depending on regulations.
• Borrowers should be current on taxes and meet acceptable credit and cash-flow criteria.

Application Process with FirstBank

FirstBank’s SBA lending specialists guide borrowers through a clear, staged process:

1. Preliminary consultation and prequalification to determine project viability and approximate financing structure.
2. Submission of application materials, including financial statements, tax returns, a business plan or project summary, and property or equipment details.
3. Underwriting by FirstBank and coordination with a Certified Development Company (CDC) to prepare the SBA-backed portion of the loan package.
4. Credit decision, commitment issuance, and preparation for closing with attention to required legal and environmental documentation.
5. Closing and disbursement, followed by ongoing servicing and support from FirstBank and the CDC.

Documentation Typically Required

To streamline underwriting, prospective borrowers should assemble key documents in advance. Common items include:

• Business and personal tax returns for several years
• Recent financial statements (profit & loss, balance sheet, cash flow)
• Business plan or executive summary describing the project and its impact
• Scope of work, construction estimates, or equipment specifications
• Appraisals, environmental assessments, and legal descriptions as applicable
• Personal financial statements and credit information for principals

Why Choose FirstBank Holding Co. for SBA 504 Financing?

FirstBank combines local market knowledge with SBA lending experience to help businesses access the 504 program efficiently. Borrowers benefit from attentive underwriting, coordination with experienced CDC partners, and a commitment to community investment. Whether you are expanding your facility, constructing a new location, or investing in long-lived equipment, FirstBank’s SBA 504 program is structured to support sustainable growth with predictable, long-term financing.

Next Steps

If your business is planning a capital project and you would like to explore how an SBA 504 loan can fit into your financing strategy, prepare a brief project summary and financials to begin a confidential evaluation. FirstBank’s SBA team will review the specifics of your situation, outline potential structures, and explain the application requirements so you can make a well-informed decision about leveraging SBA 504 financing to support your long-term goals.

Address Bank: 12345 W. Colfax Avenue, Lakewood, Colorado, U.S.
Bank: FirstBank Holding Co
Headquarters: Lakewood, Colorado
Products: Loans & Credit
Type: SBA 504 Loan