Radius Bank Small Business Loan Review
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Radius Bank offers a variety of loans for business expansion, financing or acquisition They offer competitive interest rates on credit cards, lines of credit and letters of credit are also available. However, it is very clear that Radius is very focused on SBA loans given the broad range of options they offer. Their programs include 7(a) Loans – General purpose up to $5 million; 504 Loans which are loans for fixed assets, Veteran Loans which require no down payment and are designed to be specialty loans for veterans. Finally, Radium offer SBA Express loans for up to $350,000, Export Program loans and the Express Lines of Credit Program.
Understanding Your Loan Options
The 7(a) loan program has flexible parameters to accommodate most requests. A 7a loan cannot have a revolving provision and the maximum loan size is $5,000,000. 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 SBA provides the lender with a 75% – 90% guaranty, depending on the request. The SBA Express loan program carries a maximum term of 7 years. The loan can be a term loan or a revolving line of credit. The SBA provides the lender with a 50% guaranty.
The 504 program enables the borrower to provide as little as a 10% equity injection. The financing package is structured with 2 loans – one loan is typically obtained through Radius for 50% of the financing needs, secured by a 1st lien on the asset; a second loan is obtained through a certified development company for approximately 40% of the financing need, depending on the amount of borrower contribution required. The loan is a fixed rate loan up to a 20 year term and is secured by a 2nd lien on the asset.
Speed of Implementation and Loan Duration
As a member of the SBA Preferred Lender Program (PLP), Radius is positioned to provide expertise and a streamlined process to help clients apply for SBA backed loans. Preferred Lender status gives the Radius Bank the authority to assess, document, approve and ultimately close the loan without direct SBA approval or review. From completed application to funding for business is probably more like thirty days because of the bank’s Preferred Lender status.
Fine Print and Final Thoughts
Radius Bank offers fast turnaround time on SBA loans and are a preferred lender, making them a good option for many small businesses currently looking for a loan.
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.