West Town Bank & Trust Small Business Loan Review
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The West Town Bank & Trust is an SBA National Preferred Lender, having earned this distinction based on their track record of working with the SBA, proficiency in underwriting and servicing SBA loans, and a dedication to small business. Their team of lending specialists works closely with every potential borrower, carefully reviewing needs to determine if they can approve a loan. They will patiently guide borrowers throughout the application process, from determining which loan is appropriate, to application process, to funding and servicing of the loan.
Understanding Your Loan Options
The West Town Bank & Trust has 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. The terms you can get on the loan depend on why you are asking for it; 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, which helps lower the interest rate on the loan for the borrower.
The more complicated 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 package is 2 loans – one loan is typically obtained through West Town 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. The loan is a fixed rate loan up to a 20-year term and is secured by a 2nd lien on the asset.
The bank is also willing to facilitate USDA loans for business and industry development in rural communities, which are communities of 50,000 people or less.
Duration of Loans and Speed of Application
West Town avoids offering specific timeframes for their loan application and disbursement processes. This can be frustrating for some small businesses, but it does mean that they are reviewing each loan closely, which can mean the difference between getting a loan that’s right for your small business, and getting one that will place a burden on your growth.
Final Thoughts and Fine Print
Preferred Lender status gives the West Town 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.
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.