Financing Options for Your Business
January 28, 2021
Financing your small business may be one of the most important decisions you make in your business venture. At Bank 34, we know there are many choices to make and options to consider when deciding what is right for your business. We are here to help support you through your financing and beyond to help your business stand independent and succeed. We will explore some of the financing options available that Bank 34 can provide as you build and grow your small business.
The Small Business Administration (SBA) works with lenders to provide loans to small businesses. The SBA reduces risk for small business owners by setting guidelines with its’ partnering organizations- such as Bank 34- and makes it easier for small businesses to get loans. SBA loans come with several benefits for small business owners, such as competitive interest rates and fees, lower down-payments, and no collateral needed on some loans. The SBA may also offer continual business counseling in addition to your loan, to help jumpstart and maintain your small business. SBA loans can be used for a variety of business needs but may have restrictions associated with the funds, so it is important to consult with a professional. Our at Bank 34 can help guide you to the SBA loan package that is structured to meet your unique needs.
Comparing SBA Loan Programs
Bank 34 offers financing through SBA loans including:
- SBA 7(a)
- SBA 504
- SBA Express
- SBA Commercial Real Estate, Equipment, and Unsecured
- SBA Start Up, Working, Capital, and Expansion
We will look at several of the different types of SBA loans to help you feel confident with the options available for financing your business.
The SBA Standard 7(a) program is the primary and most popular program for providing financial assistance to small businesses. Loan amounts can vary, but may be approved up to $5 million with a fixed interest rate. Standard 7(a) loans have a maximum SBA guarantee of 85% of any loss in case of default for loans up to $150,000 and 75% for loans greater than $150,000. Turnaround for approval may be up to two weeks.
The SBA 504 program can be used to purchase or update fixed assets for your business. This may be the best option for those seeking to purchase or renovate land, buildings, facilities, or equipment. Loan amounts may vary, but can reach up to $5 million. To be eligible for a SBA 504 Loan, your business must be operated for profit and fall within the standards set by the SBA. This program is designed to help the growth and progression of businesses through their assets.
The SBA Express program is an accelerated option with quicker SBA review. Turnaround with this program is within 36 hours and amounts can be approved up to $350,000. Due to the accelerated turnaround of the express program, interest rates may vary. SBA Express loans may be helpful in building your business credit and can provide a much quicker alternative to standard loan times.
Small Business Financing
In addition to SBA loan programs, Bank 34 also provides conventional small business financing directly through our bank. Small business financing through Bank 34 can provide extra security and peace of mind by offering expert personalized banking with over 85 years of experience. Factors such as interest rates, down payments, and repayment terms may be dependent upon your credit, business capital, and other contributing factors. We are here to work with you to provide the best security for the future of your business.
Since we are independent, and not a national bank with pre-programmed lending requirements, we provide flexible credit solutions that rely on human, rather than computer, decision making. We have all the same quality products, services and technology as the big guys, but we offer a more personalized and friendly banking experience. To find out more specific information on Bank 34’s business financing, you can complete the contact form on our website and one of our qualified commercial lenders will follow up you within 2-3 business days.
COVID-19 Relief for Business Loans
Amid the COVID-19 pandemic, many SBA loan programs offer economic relief and flexibility for small businesses. The CARES Act established several temporary relief programs including EIDL, SBA Express Bridge Loans, and SBA Debt Relief, which are designed to aid business owners through these difficult times. You can explore the recent relief programs implemented by the SBA to protect small business owners, their business, and their employees during the spread of the coronavirus.
The FDIC is also encouraging banks to be understanding during this time and work with customers seriously affected by COVID-19 related developments, including temporary business closures, slowdowns, or sickness. You can find more information and answers to Frequently Asked Questions on our website of the steps Bank 34 is taking for our customers during the spread of COVID-19. Bank 34 will assist in any way possible to help protect your business.
Commercial lending products at Bank 34
No matter what your business venture, Bank 34 has financing options available for you. In addition to the funding options discussed above, Bank 34 offers a variety of business financing and commercial lending options. Some of our additional commercial lending products include:
- Small Business Financing
- Small Business Administration Loans
- Revolving lines of credit
- USDA Loans
- Owner-occupied real estate financing
- Long term financing for business acquisitions
- Working capital, equipment, and manufacturing loans
- Commercial Real Estate, Office, and Industrial
- Multi-family (e.g., Apartment Complex)
- And more!
Bank 34 can finance any business need
Our personal, efficient service means you won’t have to jump through hoops to finance your business. To help you continue to stand independent, we offer a variety of business financing options and will go the extra mile to make your vision a reality. We are here to help answer any questions you may have on financing your business or the next steps you can take. Contact Bank 34 today for more information and to get started.