Umpqua Bank Small Business Loan Review
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The Umpqua Bank is an SBA National Preferred Lender, having earned this distinction based on their demonstrated track record of working with the SBA, proficiency in underwriting and servicing SBA loans. Their team of lending specialists works closely with every potential borrower, carefully reviewing needs to determine if they can approve a loan. They offer to guide borrowers through the process, from assessing which loan is appropriate, to application process, to the funding and servicing of the loan.
Understanding Your Loan Options
Umpqua Bank offers four different kinds of loans under the SBA department. The most popular is the 7(a) loan that 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. The 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 Umpqua with a 75% – 90% guaranty, depending on the request. There is a “small” version under the 7(a) program for under $250,000.00 (most banks do $350,000) that promises an easier application process with reduced paperwork requirements.
The third kind of loan is the SBA 504 and it is more complicated. 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 fourth is the USDA Business and Industry loan, which provides funds for rural business and industry development.
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 terms 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 USDA loans involve real estate and large equipment purchases, so it is also a long-term loan.
Final Thoughts and Fine Print
The fact that only the bank will be both the lender and servicer of your loan is a valuable commodity in and of itself. The complications that can form after a loan is approved and granted really calls for a consistency of care and advice across all the transactions involved.
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.