Bank of George Small Business Loan Review
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Bank of George is distinguished as an “SBA Preferred Lender.” As a leader in SBA Lending, they claim to provide a quicker, more streamlined process for their borrowers. SBA loans provide 90% financing, longer loan amortizations, no balloon payments and fixed-rate interest rates, which make them an appealing option for many small businesses. Because they are a bank rather than a lending institution, they have inhouse underwriting, and application processing is centralized for a smooth process.
Understanding Your Loan Options
The SBA 504 Loan Program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. 504 loans are made available through Certified Development Companies (CDCs), which are established by the SBA as nonprofit corporations designed to support local economic growth. SBA 504 Loans are structured by distributing the loan among three parties. Typically, the SBA CDCs provide 40% of the total project costs, Bank of George provides up to 50% of the total project costs, and the borrower contributes 10% equity into the total project.
Speed of Implementation and Loan Duration
There is very little emphasis placed on speed or efficiency in the application process, beyond claims of expertise by the loan counselors. There are no online applications, uploading of documents or even a way to calculate the conditions online. The entire process is mediated by the loan counselors. As far as duration goes, the SBA process is mediated bank loans that are made for the acquisition of real estate for terms of 25 years and if a CDC/SBA debenture offers a 20-year term. The bank offers machinery and equipment loans for up to 10 years. CDC and SBA Debenture loans are also termed for up to 10 years and there is no penalty for early payment. This means that they offer great flexibility for many different kinds of small businesses.
Fine Print and Final Thoughts
Probably a fine choice for a small successful company that has a long-term vision or even some short-term needs for capital. If you would rather devote some time and effort to the application process, this SBA program at Bank of George is probably a better choice than most for getting through without having professional guidance. Obviously, the loan is a three-layered process involving the SBA, the bank and a Certified Development Company. Small businesses that have a proven track record and a vision for expansion that is well connected in the business community could really benefit from participating in such a loan program. Get more informed on how to get business 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.