First Home Bank Small Business Loan Review
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The First Home bank is looking to provide their clients with all their financial needs, so they use the personal approach to attract small business loans. They offer an in-depth analysis of your business finances, saying “the better we understand your company, the better prepared we are to offer creative financial solutions.” The traditional role of corporate lending has been redefined from primarily developing a commercial lending portfolio to establishing a total finance and cash management relationship with customers.
Understanding Your Loan Options
First Home Bank offers several types of loans for small businesses, including term loans, commercial lines of credit, commercial real estate loans and Small Business Administration (SBA) loans, which cover a plethora of business expenses and acquisition. Under the SBA loans, First Home offers the 7a loan program, which has flexible parameters to accommodate most requests. A 7a loan cannot have a revolving provision and the maximum loan size is $5,000,000. The term of the loan is dependent on the purpose of the request; typically, working capital loans range from 7 – 10 years, while real estate can be as much as 25 years.
The second type is the 504-expansion loan, which is intended for real estate purchases, construction, and machinery and equipment purchases. This program enables the borrower to provide as little as a 10% equity injection. The final type of loan is the SBA Express loans that are for businesses with less established credit that want to improve cash flow, refinance debt, or fund improvements, equipment, or real estate. It features the easiest SBA application process and accelerated approval times, plus it offers longer terms and lower down payment requirements than conventional loans.
Speed of Implementation and Loan Duration
First Home offers the standard turnaround time that you’d expect from a traditional brick and mortar small business lender. They have faster results for their lines of credit and other products that aren’t government backed.
SBA and other government backed loans will take some time, so you should be prepared to wait if that’s the kind of loan you’re looking for. That means these loans aren’t well suited to short-term cash crunches or working capital shortfalls.
Fine Print and Final Thoughts
There are definitely small differences in the expense and quality of service between banks, but it is very difficult to be specific without going through the pre-approval process. These are not designed to be immediate or quick fix loans: 30 days minimum.
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.