First Citizens Bank & Trust Company Small Business Loan Review
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First Citizens Bank and Trust offers many financial products and services, among them are their business and commercial loans. The bank is also a purveyor of Small Business Administration loans as well as offering its own commercial financial products for small businesses. For example, they offer lines of credit and equipment and leasing loans, as well as revolving credit lines and merchant services are available for a price. The commercial term loans are also available with fixed rates and flexible terms or adjustable interest rates, secured by a senior deed of trust on owner-occupied commercial real estate with fifteen and twenty-year terms.
Understanding Your Loan Options
As far as their SBA options, 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.
The SBA's guarantee allows First Citizens B&T to provide financing to businesses which might not otherwise qualify for conventional bank financing. However, SBA loans can only be used for business related purposes. Payment of personal debt is ineligible. Credit card balances may be paid if the charges were for business related purposes.
Speed of Implementation and Loan Duration
The duration of the term loans is negotiable. Many of the SBA loans are allowed a penalty free early payback, so even if you chose a long-term loan, there is a chance to pay it back early without any penalty. In that sense, the term of the loan is shortened. The commercial loans may very well charge a fee for early payback. The SBA 7(a) loans have their own custom determined duration, whereas the 504s are usually longer in duration.
Fine Print and Final Thoughts
First Citizens offers a wide array of products to help their customers grow their small business. As a result, they have the ability to greatly help small businesses find the financial product that is best suited to their particular business. This makes them a good choice for many small businesses, and the ability to get SBA loans as well only makes them an even more preferable lender. Check them out if you’re considering a loan to help your small business grow.
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.