First Community CU
SBA 7(a) Loans
The SBA 7(a) is the Small Business Administration's primary and most flexible loan program. Maximum loan amount is $5,000,000. Because the SBA guarantees a portion of the loan (up to 85% on loans under $150,000; up to 75% above that), First Community Credit Union can extend financing to creditworthy businesses that might not qualify for conventional commercial loans — newer businesses, thinner collateral, or industries with irregular cash flow.
Eligible uses are broad: working capital, equipment purchase and installation, leasehold improvements, business acquisition, commercial real estate purchase, construction, debt refinancing, and franchise startup costs. Interest rates on SBA 7(a) loans are governed by SBA maximums, which tie to the prime rate plus a spread — so you're never paying an arbitrary premium. Terms run up to 10 years for working capital and equipment; up to 25 years for real estate.
As an SBA Preferred Lender, First Community Credit Union handles the entire credit approval internally. The SBA reviews the guarantee, not the credit decision. The practical result: your application doesn't sit in a federal queue waiting for a government underwriter. It moves at credit union speed.
SBA 504 Loans
SBA 504 loans are purpose-built for long-term fixed asset acquisition: owner-occupied commercial real estate, large equipment, and major facility construction or renovation. The structure is unique — three parties share the financing.
First Community Credit Union provides approximately 50% of the project cost as a conventional first mortgage or equipment lien. A Certified Development Company (CDC), a nonprofit SBA intermediary, provides 40% through a debenture backed by the SBA. The borrower contributes 10% equity. That equity injection — 10% — is dramatically lower than the 20-30% typically required for conventional commercial real estate financing.
The CDC portion carries a long fixed rate (10 or 25 years depending on the asset), which means that 40% of your project cost is locked at a predictable rate for the life of the loan. Maximum project size can reach $14 million or more for manufacturers and certain energy projects. Standard maximum is $5 million for the SBA debenture portion. Eligible businesses must have a tangible net worth under $20 million and average net income under $6.5 million after taxes.
SBA Express Loans
When speed matters more than maximum loan size, the SBA Express program delivers. Maximum amount: $500,000. The SBA guarantees 50% rather than the 7(a) standard, which is the trade-off for a streamlined process — First Community Credit Union can provide an initial credit decision within 36 hours of a complete application.
SBA Express works well for businesses that need a line of credit (revolving, up to 10 years) or a term loan but don't require the full $5 million capacity of a standard 7(a). Use of proceeds follows 7(a) eligible uses. If you've been declined for conventional financing but your business has been operating for at least two years and shows positive trends, SBA Express is worth a direct conversation with an FCCU business lender.
SBA Microloan
The SBA Microloan program provides loans up to $50,000 through nonprofit intermediary lenders. It was designed specifically for startups, newly established businesses, and small businesses that need smaller capital injections than conventional commercial lenders typically process. Average Microloan size nationally is around $13,000.
Eligible uses include working capital, inventory and supplies, furniture and fixtures, and machinery and equipment. Real estate purchase is not an eligible use. Repayment terms run up to 6 years. Rates are set by the intermediary lender and tend to be higher than 7(a) rates given the smaller loan sizes and higher per-loan administrative costs.
For startup businesses where a $50,000 injection is meaningful — a food truck, a small retail store, a home services company — the Microloan can provide access to credit that simply doesn't exist in the conventional market. Contact First Community Credit Union at (800) 342-8575 to discuss Microloan intermediary referrals in your area.
The SBA publishes complete program information and lender search tools at sba.gov.
SBA Eligibility Requirements
All SBA programs share a base eligibility framework. The business must be a for-profit entity operating in the United States, meet the SBA's size standards for its industry (typically measured by employee count or annual revenue depending on the NAICS code), and demonstrate inability to obtain the financing on reasonable terms without SBA assistance — meaning the SBA is a complement to the credit market, not a replacement.
Owners with 20% or more equity must personally guarantee the loan. The business must be current on all federal debt obligations and not be delinquent on any existing SBA loan. Certain industries are ineligible: real estate investment, lending, gambling, and businesses engaged in activities inconsistent with SBA policy.
Time in business is not a hard eligibility requirement — the SBA explicitly supports startups — but lenders apply their own overlays. First Community Credit Union reviews startup SBA applications on a case-by-case basis with particular attention to owner industry experience and the credibility of financial projections.
SBA Loan Program Comparison
| Program | Max Amount | Use of Proceeds | Max Term | Down Payment | Processing Time |
|---|---|---|---|---|---|
| SBA 7(a) | $5,000,000 | Working capital, equipment, real estate, acquisition, refinance | 25 years (RE); 10 years (other) | 10% typical | 5–10 business days (PLP) |
| SBA 504 | $5M+ (debenture portion) | Fixed assets, commercial real estate, major equipment | 10 or 25 years | 10% (borrower equity) | 4–8 weeks |
| SBA Express | $500,000 | Working capital, equipment, line of credit | 10 years (LOC); 25 years (RE) | 10–20% | 36 hours initial decision |
| SBA Microloan | $50,000 | Working capital, inventory, equipment (not real estate) | 6 years | Varies by intermediary | Varies by intermediary |
Terms, rates, and eligibility subject to SBA program rules and FCCU underwriting standards. Contact (800) 342-8575 for current rates and program availability. NMLS #489352.
Frequently Asked Questions
What is an SBA Preferred Lender and why does it matter?
An SBA Preferred Lender is authorized by the Small Business Administration to approve SBA loans internally, without sending each file to the SBA for individual review. First Community Credit Union holds Preferred Lender Program (PLP) status, which typically reduces SBA loan processing time from several weeks to under two weeks for eligible applications. For borrowers this means less waiting, fewer back-and-forth document requests, and a single point of contact — without any sacrifice in loan terms or eligibility.
How long does SBA loan approval take at First Community Credit Union?
SBA Express loans can receive initial credit decisions in as little as 36 hours. SBA 7(a) loans processed through FCCU's Preferred Lender status typically reach a credit decision within 5-10 business days, with closing 2-4 weeks later depending on collateral and title work. SBA 504 loans involve a Certified Development Company as co-lender, adding a second review layer — total timelines are generally 4-8 weeks. Complete documentation upfront is the single most reliable way to compress timelines.
What can SBA loan funds be used for?
SBA 7(a) funds can cover working capital, equipment, leasehold improvements, business acquisition, commercial real estate, construction, and eligible debt refinancing. SBA 504 loans are restricted to fixed assets — commercial real estate and major equipment. SBA Express follows 7(a) eligible use rules. SBA Microloans cover working capital, inventory, supplies, furniture, fixtures, machinery, and equipment, but cannot be used for real estate or to pay existing debt. See sba.gov for complete program rules.
What down payment is required for an SBA loan?
SBA 7(a) loans typically require 10% down for established businesses with demonstrated cash flow, though the SBA may require more for limited collateral situations. SBA 504 loans require as little as 10% borrower equity — with FCCU providing 50% and the CDC providing 40%. Startups or special-purpose properties may require 15-20% down. These lower equity requirements compared to conventional commercial loans are one of the primary reasons businesses pursue SBA financing.
Does my business need to be profitable to qualify for an SBA loan?
Not necessarily. The SBA and First Community Credit Union evaluate cash flow adequacy — the business's ability to service the proposed debt — rather than requiring historical profitability. A business with improving trends or a startup with strong projections supported by owner industry experience may still qualify. Lenders calculate debt service coverage ratio (DSCR) and review global cash flow including owner income. A DSCR of 1.25x or better is a common benchmark, though this varies by program and loan purpose.