First Choice Bank Small Business Loan Review
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First Choice has earned this designation because it has proven to the Small Business Association that it has the knowledge and skills required to perform within its various loan programs. As an approved “PLP” lender SBA Lender, First Choice Bank has already made a mark ranking as the fourth largest SBA lender in terms of dollars lent as posted by the three county Santa Ana District Office of the SBA.
Understanding Your Loan Options
First Choice guarantee loans are made available to assist small business owners to obtain loans that are not traditionally bankable. These loan programs, guaranteed by the State, emphasize the creation and retentions of jobs.
There are three major SBA partnership loans are available at First Choice Bank, including the 504-unsecured loan program that focuses on real estate and machinery funding and unlike 7(a) loans, 504 loans include job creation requirements: Manufacturers, for example, must create or retain one new job for each $100,000 of the loan, while all other industries must create or retain one new job for each $65,000 of the CDC 504 loan. The 7(a) program that requires security but offers the same real estate loans for variable rates and 20-25-year terms. Finally, they offer the SBA Express Loan, a program that allows a small business to obtain a line of credit for the business that will be termed out after a period of time which allows for a balance between short term and long-term needs while serving as a vehicle to assist a business to grow.
Speed of Implementation and Loan Duration
First Choice Bank 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 are advantageous for banks and borrowers because they provide 90% financing, longer loan amortizations, no balloon payments and fixed-rate interest rates. Because First Choice is a bank rather than a lending institution, they have inhouse underwriting and the application processing is centralized for a smooth process. Aside from SBA Express, there is no quick version of a government backed loan.
Fine Print and Final Thoughts
First Choice is a solid option for small businesses interested in a variety of small business financing products. The in house underwriting they offer for their loans helps to speed up the process relative to other lenders, and makes them a competitive choice for many small businesses in many different industries no matter what your needs are.
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.