The Bancorp Bank Small Business Loan Review
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The Bancorp Bank is an SBA National Preferred Lender, having earned this distinction based on their demonstrated track record of working with the SBA, proficiency in underwriting and servicing SBA loans, and a commitment to small business. Their team of lending specialists works closely with every potential borrower, carefully reviewing needs to determine if they can approve a loan. They agree to patiently guide borrowers throughout the process, from assessing which loan is appropriate, to application process, to funding and servicing of the loan.
Understanding Your Loan Options
The SBA 7(a) Program provides guaranteed financing for a variety of business purposes. The specific business-related expenses covered include working capital, machinery & equipment, furniture & fixtures, land & buildings (including purchase, renovation and new construction), leasehold improvements, and qualified debt refinancing. The SBA 7(a) Program will also help preserve working capital as it requires only a low-down payment from borrowers.
Their second type of loan is through the US Department of Agriculture (USDA) Business and Industry (B&I) Guaranteed Loan Program. It is designed to increase economic development in rural areas by improving, developing or financing business, industry and employment.
Finally, the 504 Loan Program is a blend of traditional bank financing and SBA backed debentures. 504 financing is structured as two loans with individualized terms and conditions for each component.
Duration of Loans and Speed of Application
As a member of the SBA Preferred Lender Program (PLP), Bancorp is positioned to provide expertise and a streamlined process to help clients apply for SBA backed loans. Normally SBA loans can take easily up to 64 days to get approval, and that is after all of the applicant’s documents have been turned in to the lender. However, Preferred Lender status gives Bancorp the authority to assess, document, approve and ultimately close the loan without direct SBA approval or review. From completed application to funding is probably more like thirty days because of the company’s Preferred Lender status.
Final Thoughts and Fine Print
The advice and guidance offered by Bancorp does not necessarily come cheap. As an established financial institution, you can expect that they know how much their services are worth. Make sure to get a list of the charges and fees that Bancorp will collect for providing the loan. Failure to do so means that you might wind up paying more for your loan than you expected, or that you won’t be getting the quantity of money you need from your loan.
Anne is a Senior Author for SBL. She began her career as an independent consultant for local businesses after graduating with a BA in Management. Since that time, she’s expanded to writing as well as consulting to spread helpful knowledge to small business owners across the country.