Plaza Bank Small Business Loan Review
Find the Best Rates for Your Small Business Loan
Get connected with top lenders in a matter of seconds!
Plaza Bank aspires to provide a full complement of financial products for small business, including revolving lines of credit for greater flexibility in managing a company’s cash flow in its day-to-day operations, loans for capital expenditures to enhance the company’s long-term viability, and letters of credit to support inventory purchases, another set of services are built around more long-term purchases or sales like owner-occupied real estate, business expansion or acquisition. In addition, Plaza Bank is a member of the Preferred Lender Program by the Small Business Administration.
Understanding Your Loan Options
The two major SBA partnership loans are available at Plaza Bank, including the 504-unsecured loan program that focuses on real estate and machinery funding. The 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 requires security but offers the same business expense loans for equipment, office furniture, former business debts or real estate loans with variable rates for up to 25-year terms.
Plaza’s 504 Loan Program is a blend of traditional bank financing and SBA backed debentures. 504 financing is structured as two loans with individualized terms and conditions for each component. There is a 1st mortgage lender that provides up to 50% of the eligible total project costs and a 504 2nd mortgage company that lends up to a maximum loan of 40% of the eligible total project costs. 504 financing does not provide financing for working capital, inventory, debt refinancing and business acquisition purposes.
Speed of Implementation and Loan Duration
As a member of the SBA Preferred Lender Program (PLP), they are positioned to provide expertise and a streamlined process to help clients apply for SBA backed loans. Normally SBA loans can take easily up to 64 days to get approval, and that is after all of the applicant’s documents have been turned in to the bank. However, Preferred Lender status gives Plaza Bank the authority to assess, document, approve and ultimately close the loan without direct SBA approval or review. From completed 7(a) application to funding is probably more like thirty days because of the bank’s Preferred Lender status.
Fine Print and Final Thoughts
Plaza Bank has some decent options for small business capital, and their preferred lender status means that they can execute SBA loans faster than other lenders, making them a good place of funding for small business.
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.