As your business grows you may find that you need to have an upgrade to your current surroundings. A FirstBank lender can help you with a commercial real estate loan.
You may need to finance or re-finance a commercial or investment property. FirstBank commercial mortgage loans are typically structured as a 20 or 25 year amortization with a 10 year maturity. The interest rate is fixed for the initial 5 year period, and is re-priced for the second 5 year period. The interest rate for commercial mortgage loans is set daily and is available from your FirstBank loan officer.
Preserve your cash while growing your business. FirstBank offers up to 90% Loan-to-Value financing for certain owner-occupied commercial mortgage loans. Eligible uses for the program include: (1) purchase, renovation or expansion of existing building, (2) purchase land/construct new building(s), and (3) purchase machinery and equipment.
At FirstBank, we understand that each loan applicant has different needs. We do not have a “one-size fits all” loan structure. Instead, we focus on listening to your ideas and coming up with a solution. We provide one-on-one customer service that you cannot get at larger institutions.
The SBA 504 loan structure typically allows a customer to borrow 90% of the total acquisition costs of a property, plus other costs associated with necessary improvements to the property. Typically, FirstBank provides 50% of these total costs via a commercial real estate loan and the SBA provides a loan for 40% of total costs. The borrower is required to contribute the remaining 10% of total costs.
There are several reasons why a borrower might choose to use an SBA 504 loan rather than a standard commercial real estate loan. Typically, standard commercial loans require the borrower to contribute 25% of the purchase price of the building, plus closing costs and the cost of equipment. An SBA 504 loan requires less cash towards the purchase, which increases the business' ability to buy the property, and allows it to retain cash for working capital. Additionally, the bank often offers a lower interest rate when financing a smaller percentage of the purchase price.