Commonwealth Business Bank Small Business Loan Review
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Commonwealth Business Bank (CBB) is distinguished as an “SBA Preferred Lender.” This means that they have the experience required to get the best results from the SBA loan application process in a timely manner. SBA loans provide 90% financing, longer loan amortizations, no balloon payments and fixed-rate interest rates. 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
Applying for any SBA loan can be an arduous process, and that’s certainly true when working with Commonwealth Business Bank. You can speed the process up by making sure you have all the required paperwork and documentation in order before you begin the loan application process. This will help prevent delays and issues when reviewing your loan, and means that you’ll be able to give a timely reply to any additional requests for information. SBA loans are not designed to be immediate or quick fix loans, but as a Prefered Lending Institution CBB can promise a quicker decision and pre-approval process for loans on up to $5,000,000 for terms from 7-25 years.
Research shows that traditional banks are still stringent in their lending practices and reject over 40% of small business owners who apply for loans. Banks turn down many businesses because they use a rigid set of guidelines that usually require multiple years in business, a high FICO score, assets and a high loan amount. This bank, however is a business bank, so their portfolio of small business loans is much better developed.
Speed of Implementation and Loan Duration
CBB can claim that they can arrange approval, under the right circumstances, in one day’s time because of their PLP status. However, we’ve found that it’s very rate to get an SBA loan this quickly, and you should expect that the process will take at least a few weeks. Therefore, they might not be the best lender if you’re looking to make up a short-term cash crunch or working capital shortfall. In those instances, it’s usually better to look to online only or peer-to-peer lenders for their faster turnaround time and loan disbursement.
Fine Print and Final Thoughts
The SBA's guaranty allows CBB to provide financing to businesses which might not otherwise qualify for conventional bank financing. The process takes a little longer and is a little more paper intensive than the bank proper, but SBA loans enjoy much more economical terms and standards. If you’re looking for the better terms that you get from an SBA loan, Commonwealth might be a good option for you.
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.