First Vietnamese American Bank (FVAB) is dedicated to serving small business in Southern California, particularly those in the numerous ethnic communities including Vietnamese, Korean, Chinese and Hispanic.

We specialize in loans and services specifically intended for small business owners, and SBA loans are very important element of our lending capabilities for small businesses.

SBA stands for Small Business Administration. The SBA is a federal agency that was created in 1953 to assist small business owners in obtaining financing that was designed specifically for their needs. The Federal Government actually guarantees a portion of their loan which makes it possible for banks to make small business loans that would not be possible otherwise.

Frequently SBA loans offer loans of longer maturities which make it easier for small business to make the loan payments and thus qualify for the loan. Another advantage is that SBA financing often requires a smaller down payment than conventional bank financing. SBA loans are thus often the only way to finance a small business and are frequently available to new business owners, a situation that is difficult for traditional bank financing. SBA loans are also available to purchase a new business such as a franchise. The SBA offers advice to prospective new business owners such as how to create a business plan that will help obtain needed financing.

There are many reasons to consider an SBA loan for your business. Among the more important reasons for considering such as a loan are the following considerations:

• SBA loan may be the way to obtain financing, such as for a new business.
• SBA’s longer maturities may enable a borrower to afford smaller payments.
• SBA can require a down payment that is lower and more affordable.
• No prepayment penalties on loans up to 15 years in maturity.

SBA financing can be used for many purposes. The many uses for SBA loans include:

• Business Acquisitions
• Working Capital
• Equipment Purchases
• Furniture & Fixture Purchases
• Commercial Real Estate (Owner Occupied)
• Real Estate Construction

First Vietnamese American Bank will work directly with you and the SBA to help you obtain the SBA loan that is right for your business. The application process is simple.
Here are the steps that are involved:
Just come into the bank and pick up your application forms. A FVAB officer will discuss your needs with you to make sure that an SBA loan applies. When you have completed the simple application, return the forms to us and we will submit them to the SBA in your behalf. We will work with you every step of the way toward approval by the SBA.

Often the process can be completed in two weeks; sometimes for smaller amounts the process takes a few days.

7(a) Program:

This loan program is the most basic and the most commonly used type of SBA loan.
These loans are available utilizing a loan guarantee from the federal government.

Common eligible uses of a 7(a) loan include:

• To purchase land or buildings.
• For new construction.
• To acquire equipment, machinery, furniture, fixtures or supplies.
• For long-term working capital needs.
• For short-term working capital needs.
• To purchase an existing business.

504 Loan Program:

This program is designed to provide businesses with long-term, fixed-rate, financing for major asset acquisitions such as land or buildings. These loans require a very low equity contribution of the business owner of just 10%.

For more information on SBA loan programs go to www.SBA.gov or call us at (714) 894-3105.