IberiaBank Small Business Loan Review
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The largest Louisiana-based bank, IberiaBank of Lafayette is famous for its small business lending practices. They divide their business financial products into four categories: business term loans, operating lines of credit, real estate loans and SBA loans, so some of the commercial loan products that Iberiabank offers directly compete with their SBA loan offerings. They have a broad range of financial services to support businesses, all for a price, like Treasury Management and merchant processing services.
Understanding Your Loan Options
Iberiabank offers operating lines of credit that only charge interest on the funds actually used. The best feature of the credit lines, aside from convenience, they have a small business line of credit program that is specifically tailored to the needs of small businesses. Aside from all the commercial term loans with less attractive terms, Iberiabank only offers one SBA loan: the 504 and that one is through a different subsidiary.
Through a partnership with Mercantile Capital Corporation, a wholly-owned subsidiary of Iberiabank, SBA 504 is especially designed for small business with no equity. The purpose of the loan is to make owning real estate a reality for many small businesses that may not otherwise get financing. Business owners can use excess capital and increased cash flow to concentrate on growing their businesses instead of putting it into their real estate.
Speed of Implementation and Loan Duration
This is going to take a minute, to say the least. The 504-loan program requires three different parties to coordinate, since the ownership/lien is shared by three parties. The paperwork for one alone is pretty staggering, so hiring a company that is authorized to lend in partnership with the SBA is probably smart.
Aside from SBA Express, which they do not offer, there is no quick version of a government backed loan. That means that you should carefully consider what you need your loan for before you decide what type of loan to apply for. Short-term issues are usually best resolved through products like lines of credit or working capital financial products. The best-case scenario for approval of an SBA loan is 30 days after you’ve submitted your paperwork. As a result, having all the required paperwork ready to go before you begin the loan application process is a good way to help speed things up.
Fine Print and Final Thoughts
IberiaBank offers some great products and has tremendous flexibility between their SBA and non-SBA options, so they’re worth looking into for your small business lending needs.
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.