Northeast Bank Small Business Loan Review
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Northeast 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 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
This bank offers several creative commercial financing products and services that help people deal with changes in the market. For example, they offer a transitional loan for folks who are selling one house and moving into the next one that they are buying. They also offer conventional term loans, They are also very interested in attracting business from national banks who outsource small or specialized loans or community-sized banks that lack the expertise to put together a SBA loan.
The two major SBA partnership loans are available at Northeast 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 liquidity for any business expenses including real estate loans for variable rates and 20-25 year terms.
Speed of Implementation and Loan Duration
Since they enjoy Preferred Lender status, Northeast Bank has been approved by the SBA to review, analyze approve and close on loans in the name of the SBA. Since they do their own inhouse underwriting, they can complete an assessment of your financial status and eligibility fairly quickly compared to the SBA. Loan durations are negotiable, with no early payment penalty for loans under 15 terms. For loans over 15 years the prepayment penalty is a sliding scale over time.
Fine Print and Final Thoughts
The advice and guidance offered by Northeast Bank does not necessarily come cheap. The bank expects its customers to pay for access to their expertise. In the fine print, you will often find hidden fees and service charges that you did not expect to encounter, increasing the overall cost of your loan. This company does little to explain the cost of the loan, which come in the form of service charges and fees.
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.