Bank of Michigan

SBA Loans

With an SBA loan, your business can take advantage of more flexible terms.

Can you use an SBA loan?

If you have a growing business, SBA financing can help you to:

  • Purchase, renovate or upgrade real estate to operate your business, construct a business facility or make improvements to an owner-occupied property
  • Purchase fixed assets including heavy machinery or specialized equipment
  • Borrow working capital to manage day-to-day cash flow and purchases.

SBA 7(a)

SBA 7(a) can provide funds for a variety of business purposes, including funding equipment purchases, business acquisitions or expansion, finance permanent working capital or purchase real estate.

SBA 504 Loan Program

These loans are generally designated for projects over $500,000 and can be used to purchase real estate or equipment.

Loan and Line Amounts

SBA 7(a) Program: Up to $2,000,000

SBA 504 Loan Program: Generally used for projects greater than $500,000

Annual Percentage Rate

Fixed or variable rates for loans, and variable rates for lines of credit.

Interest Rate

SBA 7(a): Fixed rates are available for up to seven years. Variable rates are indexed to the Wall Street Journal Prime rate plus a margin.

SBA 504 Loan Program: Fixed or variable rates are available depending upon the term of loan.


SBA fees, packaging fees, or origination fees may apply and will vary based upon the type and the term of the loan.

Repayment Terms

SBA 7(a): Working capital loans - up to 7 years. Equipment loans - up to 10 years. Real estate loans - up to 25 years.

SBA 504 Loan Program: Terms are typically from 10 to 20 years.

Bank of Michigan President Michael G. Sarafa

Letter from the President

Welcome to the new Bank of Michigan website. We hope you find it fresh and easy to use. It is our goal to create positive customer experiences for every transaction from internet banking to a personal visit with us at the bank. Our experienced and dedicated team of bankers is ready to offer creative solutions to meet your banking needs.

At Bank of Michigan, we take great pride in our core values: integrity, loyalty, community, responsiveness and maximizing success. We take these principles very seriously. They drive our mission, purpose and values. Our Board of Directors and staff personally stand behind these commitments.

Thank you for visiting us and do not hesitate to contact me if I can assist you in any way.

Michael G. Sarafa, President