SunTrust Bank Small Business Loan Review
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SunTrust Bank is obviously a large company that offers many kinds of financial products, including small business loans. Their commercial loan options include fixed rates, adjustable rates, commercial real estate, renovation and construction loans as well as lines of credit for short term expenses. Each has its own characteristics but they are all subject to evaluation in relation to your own business’ financial situation, potentially only your credit score in some instances.
Understanding Your Loan Options
The two major SBA partnership loans are available at SunTrust: 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. 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.
Finally, they offer the SBA Express Loan, a program that allows a small business to obtain a line of credit 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 in short and long-term goals.
Duration of Loans and Speed of Application
The duration of SBA loans varies in and among types of loans. Most of the programs have maximum terms but few dictate the term uniformly. The SBA 7(a) can be anywhere from three years to twenty-five years, depending on the type of business expense the loan is intended to purchase. Since the 504 is designed to property or equipment, it can range all the way up to twenty-five years as well. The SBA Express can be short term or long term, depending on the situation.
Final Thoughts and Fine Print
Banks, state or federal agencies, venture capital firms and other investors have different viewpoints and focuses. For example, private equity investors like angel investors and venture capitalists, for example, are more concerned about the day-to-day company operations because they have a stake in the company. Larger financial institutions such as banks may never step foot into your business. They are more concerned about the plan that was put on paper and the entrepreneur.
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.