; SBA Loan Uses - Learn How A SBA Loan Works | First Commonwealth Bank Skip To Content

SBA Loan Uses

SBA Loans can be used for a variety of reasons depending on the needs of your business, including:

  • Real estate purchase/refinance
  • Ground-up real estate construction
  • Construction of leasehold improvements
  • Equipment purchase
  • Lines of Credit
  • Permanent working capital
  • Expansion
  • Business acquisition
  • Partner buyout
  • Debt refinancing

Purchase of a business or Partner Buyout

  • Up to 85% financing for the acquisition of a business
  • Up to 100% financing for partner buyout
  • Up to $5 million in bank lending

Commercial Real Estate

  • Up to 90% financing
  • Up to 25-year term
  • 51% or more owner-occupied
  • Can include working capital, equipment, improvements


  • Up to 90% financing
  • 10 to 25-year term
  • Must be in business at least two years
  • Can include working capital, equipment and improvements


  • Must save at least 10% on current debt service
  • Up to 25-year term
  • Equity injection not required

How SBA Loans Work

Understanding how SBA loans work is critical as a business owner so you can borrow with confidence. Simply put, the Small Business Administration (SBA) sets guidelines for how SBA guaranteed loans can be made by preferred lenders like First Commonwealth. The SBA is not lending money directly to the business owner but rather provides an incentive to the lenders in the form of a partial loan guaranty. This then makes it easier for a small business owner to get loans to drive the growth of their business.

The specifics of what type of loan you need will also be explained by our SBA team when you meet with them.