U.S. Small Business Administration loans are an excellent way to help finance your small business. If you are looking to purchase equipment, purchase or construct a new building, make an acquisition or refinance existing debt, SBA loans can be great financing option.

Our expertise in SBA 7(a) and SBA 504 loan programs for Michigan small businesses will allow you to leverage a lower down payment AND an extended amortization to minimize your cash outlay while simultaneously improving your business’ cash flow.

Clarkston State Bank has earned recognition from the U.S. Small Business Administration (SBA) as an SBA Preferred Lender Participant (PLP) for its 7(a) loan program. A Preferred Lender is considered an expert in SBA regulations and guidelines and is granted the authority to act as a direct agent of the federal agency. This designation also expedites the approval process by the SBA, providing a substantial benefit to applicants.

Below is an introduction to these loan programs available to Michigan businesses through Clarkston State Bank. For more details, contact one of our experienced lenders at (248) 922-2700, and to see if an SBA loan is right for your business. 

What is an SBA 7(a) Loan?

The SBA’s primary and most popular loan program is the 7(a) – a general small business loan. Small businesses can borrow up to $5 million through CSB to fund their startup costs, purchase real estate, buy equipment and more:

  • Purchase new land (including construction costs)
  • Repair existing capital
  • Business acquisition, expansion or start ups
  • Refinance existing debt
  • Purchase machinery, furniture, fixtures, supplies or materials
  • Commercial real estate purchase, expansion, renovations or leasehold improvements

Ineligible businesses include:

  • Non-profits
  • Private Clubs
  • Lending Institutions
  • Gambling Facilities
  • Life Insurance Companies
  • Religious Institutions  

What is an SBA 504 Loan?

The SBA 504 Loan Program (or CDC loan) is aimed at helping small businesses in Michigan grow through the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates. SBA 504 loans from CSB can be used to:

  • Purchase land
  • Purchase existing buildings
  • Purchase long-term machinery and equipment
  • Purchase improvements (including grading, street improvements, utilities, parking lots and landscaping)
  • Build new facilities or modernize, renovate or convert existing facilities.

An SBA 504 loan cannot be used for the following:

  • Working capital or inventory
  • Consolidating, repaying or refinancing debt (however, you may refinance a portion of debt associated with buying or renovating equipment/facilities)
  • Speculation or investment in rental real estate.

For more information, please contact our loan department at (248) 922-2700