TD Bank Small Business Loan Review
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TD bank likes to emphasize that they can offer the small business access to quick capital through a line of credit between $25,000 to 500,000 with a “competitive” variable interest rate that provides access to your money by writing a check or transferring money online. Monthly payments are automatically deducted from the small business checking account and the line of credit can be paid down and used again. Customers may choose to make an interest-only payment and flexible options available through the SBA.
Understanding Your Loan Options
The 7(a)-loan program has flexible parameters to accommodate most requests. A 7(a) 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 TD Bank with a 75% – 90% guaranty, depending on the request.
The 504 program is intended for real estate purchases, construction, and machinery and equipment purchases. This 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 TD Bank 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.
Duration of Loans and Speed of Application
As a member of the SBA Preferred Lender Program (PLP), TD Bank is 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 lender. However, Preferred Lender status gives TD 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.
Final Thoughts and Fine Print
TD Bank is a known quantity in the lending world. They’re a good choice if you’re looking for an SBA loan from a financial institution with a long history.
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.