State Bank and Trust Small Business Loan Review
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As a member of the SBA Preferred Lender Program (PLP), State Bank is positioned to provide expertise and a streamlined process to help clients apply for SBA backed loans. They offer the most useful and quickly approved loans out of the SBA options. That includes the 7(a)-secured business capital loan and the 504-unsecured business startup and acquisition as well as equipment and real estate loans. The other two SBA options are the Express and the CAPLines programs.
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.
For example, the 504 Loan Program is a blend of traditional bank financing and SBA backed debentures for up to $5,000,000. 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.
Duration of Loans and Speed of Application
Working Capital CAPLines is one of the quicker and easier SBA loans to apply for that provides revolving lines of credit with annual renewal availability up to 10 years, maximum $5,000,000. The loan must be fully collateralized or structured with a borrowing base. Applicant must provide first lien on accounts and inventory of the business. SBA provides lender a 75 – 85% guaranty. This loan is both short-term and cyclical and designed to provide working capital.
Finally, State Bank offers the SBA Express Loan, a program that allows a small business to obtain a line of credit for up to $350,000 that will be termed out at a rate that best allows for a balance between short term and long-term needs while serving as a vehicle to assist a business to grow.
Final Thoughts and Fine Print
Preferred Lender status gives State Bank the authority to assess, document, approve and ultimately close the loan without direct SBA approval or review. From completed application to funding is probably more like thirty days because of the company’s Preferred Lender status, making them an attractive option for many small businesses.
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.