Our Credit Philosophy

By |2018-12-17T15:15:26+00:00December 17th, 2018|SBA News|

Are you looking for a business loan and growing frustrated?  We understand.  Getting a traditional bank loan can be very difficult if you don’t have substantial cash or collateral on hand.   Have you explored an SBA loan? Midwest Regional Bank lends in the spirit of the SBA–meaning we are committed to financing projects that make sense but otherwise might not meet traditional financing requirements.

For instance, many borrowers do not have the resources to meet a 30% equity injection that a traditional commercial loan might require.  On our SBA loans, we try to work with a 10% equity injection.  Along those same lines, there are frequently situations where a borrower will not have enough collateral–so a traditional lender will not finance the project, even though the project makes sense.  This would be a good candidate for an SBA loan; as lack of collateral is not a reason to outright decline a loan.

Another example would be startup projects.  You will be hard pressed to get a traditional bank loan for any kind of startup without substantial collateral or cash in the bank…not the case with an SBA loan.  We frequently finance startup projects with borrowers that are experienced and have at least 10% to put into the project.

Midwest Regional Bank can do all of this at a lower rate than the return a private investor would demand or the fees that crowdfunding would take.

Best Small Business Financing

By |2018-12-17T15:12:30+00:00November 29th, 2018|SBA News|

One option to finance your small business is with a Small Business Administration 7(a) loan.  This type of government guaranteed loan is popular because it allows lenders to offer low interest rates and flexible terms.  Lenders fund the SBA loan and the federal agency guarantees a portion.  The Small Business Administration (SBA) can guarantee up to 85% of loans that are $150K or less and 75% of loans more than $150K.  This type of loan is a great option when you want to hire more employees, open a new location, or refinance an existing loan.  This federally backed loan is more manageable for borrowers than other types of financing because lenders can offer lower monthly payments and longer terms for repayment.  With a non-SBA loan, you will have a shorter time period to repay the loan and high interest rates with hard money lenders.  The SBA requires  the owner(s) with 20% or more ownership to personally guarantee the loan.

How long is the term for a SBA loan?

The loan terms depends on how you are using the funds.  Typically, working capital or daily operations will be 7 years.  For new equipment purchases the SBA term will be 10 years, while real estate purchases will be up to 25 years.

Can I get a SBA loan?

For your added convenience, we have added a SBA QuickCheck on our home page to quickly let you know if your project is eligible for a SBA loan!

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