Simmons Bank Small Business Loan Review
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Simmons Bank is a large company that offers a full complement of business services and products, including small business loans. Their loan options include fixed rates, adjustable rates, commercial real estate, renovation and construction loans as well as lines of credit for short term expenses. Included in the repertoire is the category of government backed SBA loans.
Understanding Your Loan Options
The Simmons Bank is arguably very well versed in SBA programs, if the range of offerings they have is any indication. The traditional 7(a) secured 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. Terms of working capital loans range from 7 – 10 years, while real estate can be up to 25 years. The SBA provides the lender with a 75% – 90% guaranty.
The other SBA loans are the International Trade Loan, a complicated reality, and the more commonly used 504 programs for real estate purchases, construction, and machinery and equipment purchases. This program requires a 10% equity injection and is structured with 2 loans – one loan through Simmons Bank for 50% of the financing: a second through a certified development company for 40%, 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.
Duration of Loans and Speed of Application
The SBA Express – With an 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. There is also a “Small 7(a) loan, which basically allows small businesses to get some capital for support, to resolve old business loans or to even buy office furniture or inventory. The limit is $100,000 and there is a reduced paperwork burden.
Obviously these 504 loans take a minute to apply. The paperwork around them is more easily navigated if you invest in an expert to guide you like the Simmons bank loan agents. Their level of experience can really make the process easier and thus faster.
Final Thoughts and Fine Print
Make sure you have a full understanding of the different charges and fees you might accrue working with Simmons. This will give you a more complete picture of how much the loan will cost so you can make the best decision for your 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.