Small Business Administration (SBA) Loans (Getting a Loan)

SBA Preferred lender

1st Source Bank is accredited by the SBA as part of their Preferred Lender Program (PLP). Our status as a preferred lender allows us to make decisions on nearly all loan applications in house as opposed to going through the SBA first. This competitive advantage equates to quicker turnaround times than non-PLP lenders.

1st Source Bank has been recognized for the following SBA awards:

Indiana SBA Community Lender ‘Gold Level Award’ winner 9 straight years (2013-2021)

Largest Number of SBA 504 Approvals by the Business Development Corporation South Bend, IN (2020-2021)

Largest Dollars of SBA 504 Approvals by the Business Development Corporation South Bend, IN (2020-2021)

The SBA Loan Advantage

There are many benefits of an SBA loan. Here are just a few:

Extended repayment terms
SBA loans generally offer longer repayment terms. That can equal lower monthly payments and more cash for your business needs!

Interest rate caps
The SBA limits the interest rate that a lender can charge you on an SBA loan. Rate limits vary by SBA product type and loan amount.

Avoid pre-payment penalties
For SBA loans with a maturity less than 15 years there are no pre-payment penalties. For SBA loans with a maturity of 15 years or longer, SBA limits the pre-payment penalty to the first 3 years of the loan.

No balloon payments or demand notes
The SBA prohibits balloon or demand note structures on amortizing loans.

The 1st Source Advantage

There are many benefits of doing an SBA loan with 1st Source Bank. Here are just a few:

1st Source Bank is accredited by the SBA as part of their Preferred Lender Program (PLP), creating quicker turnaround times than non-PLP lenders.

The SBA program parameters are complex and prone to frequent change, you want a lender that can expertly navigate programs; one who can partner in choosing the best program to meet your small business needs.

(Subject to SBA Rules and Credit Approval)