Gorham Savings Bank was recently awarded the U.S. Small Business Administration’s 2022 District Director Award in Maine for completing eight 504 loans totaling $7.9 million, thirty-three 7a loans totaling nearly $5.2 million which, when combined with SBA’s portion of the loans, represented about $13 million in financing to small businesses here in Southern Maine.
SBA 504 loans are often used by small businesses to purchase real estate, equipment, and fixed assets, or to finance ground-up construction or building improvements. Typically in a 504 loan, a participating lender funds 50 percent of the project, the SBA funds 40 percent, and the borrower provides 10 percent. Loans can be obtained up to $5,000,000 at a fixed term.
SBA 7(a) loans are used for a wider variety of purposes, including working capital, business acquisitions, startups or business expansion.
“Our partnership with SBA allows us to financially empower and help more Maine small businesses grow,” said Gorham Savings Bank President and CEO Steve deCastro. “Many of Maine’s most notable businesses have utilized SBA’s 504 and 7(a) programs to grow or expand their business operations, start a new business or to purchase an existing business. As a community bank, being awarded the 2022 District Director Award, aligns with our brand purpose of being a force for good in the communities we serve.”
Visit SBA.gov to learn more about the 504 and 7(a) programs.