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Products and Services - Commercial Lending
Business Loan Product Program Summary
| Loan Types | . Equipment - Term Loans . Real Estate - Commercial Mortgages, Construction/Rehab . Working Capital - Term Loans, Lines of Credit, Letters of Credit |
| Loan Sizes | Approximate range $5,000 - $2,000,000 |
| Terms | . Real Estate - 15 years maximum (longer with acceptable federal/state guaranty) . Equipment - expected life (7 years maximum - longer with acceptable federal/state guaranty). . Working Capital - match cash flow of company (5 years maximum) . Lines of Credit / Letters of Credit - annual renewals (or longer with acceptable federal/state guaranty). |
| Interest Rates | . Fixed rates - set at time of commitment . Variable rates - generally set at 1-3% over Prime Rate . Pricing is intended to reflect both risk and delivery cost |
| Fees | . Commitment - generally 1.5% . Closing attorney and filing fees (if applicable) . Federal/State guaranty fees (if applicable) |
| Equity Requirements | Case-by-case basis. Generally 10+% owner contribution is preferred. |
| Collateral | . First lien on assets being financed |
| Personal Guaranty | Required from all owners |
| Other Conditions | . Insurance - collateral, general business liability, etc. . "Key man" Life Insurance - generally owner/guarantor . Necessary licenses/certifications . Periodic financial reporting . Necessary forms for establishing liens on collateral |
| Application Requirements | . Signed Loan Application . Personal Financial Statements for all Owners and Guarantors . Financial Statements and/or Tax Returns for last 3 years . Interim Financial Statements dated within 90 days of Loan Application . Business Plan, including financial projections . Accounts Receivable and Payable Listing . Notes Payable Listing . Management resumes . References - 3 suppliers and 3 customers . Articles of Incorporation / Partnership Agreemen |
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