US Metro Bank Small Business Loan Review
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The US Metro Bank is a full-service bank that offers a range of financial products and services, including small business loans. Their commercial loan options for business include fixed rates, adjustable rates, commercial real estate, renovation and construction loans as well as lines of credit for short term expenses, among all sorts of other services. Each has its own unique aspects, but they are all subject to evaluation in relation to your own business’ financial situation. In some instances the only information they need is your credit score.
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. With US Metro Bank, the term of the loan is dependent on the reason you are asking for money; typically, working capital loans range from 7 – 10 years, while real estate can be as much as 25 years. The SBA provides the lender 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 US Metro 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
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.
Aside from SBA Express, there is no quick version of a government backed loan. The bank is the only proprietor in the process, so inhouse underwriting will save some time.
Final Thoughts and Fine Print
Make sure you understand the limitations and conditions of any loan you take out. US Metro can help you make sure that the loan you’re applying for is right for your small business, so don’t be afraid to take them up on their offers of advice.
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.