Bank Loans for US Businesses

by admin on July 17, 2011

Businesses seek financing for a variety of reasons, including covering shortages of operating capital, financing a new business project, expanding to a new location, or establishing a new business. If you will be developing a new location, additional costs may include transferring your top managers and covering their living expenses. If you plan to develop a new product or idea, you have to factor in patent attorney fees and other expenses. In all cases, additional costs are often outside your field of vision as a manager, but the loan officer will evaluate them when doing a risk analysis and developing a payback schedule.

Business loans are available by the federal government as well as banks in the US. If you are looking for a federal loan, you can match loan types with your business project and the nature of your business. Loans are available in the fields of agriculture, disaster relief, business, housing, education, and veteran. Depending on your focus, you can choose from a variety of loans within these main categories. For example, if you are looking for a microloan, you can apply for financing under the Microloan Program, which offers small loans to expanding, newly established, and start-up businesses. The maximum term is normally 6 years, and the provision of collateral is required. If you recently suffered losses due to a natural disaster, you can apply for financing in the form of an Emergency Farm Loan. You can use the funding to purchase equipment and livestock, make urgent repairs and replace buildings, refinance other debt, or cover essential farm and family expenses. You can also use the money to replace or repair major household items which have been damaged. The financing is up to $500,000. If the loan is extended to cover real estate losses, its term cannot exceed 40 years. In other cases, the loan’s term is up to 7 years. Emergency loans go with an interest rate of 3.75 percent.

Banks are, of course, another option, offering a variety of loans, lines of credit, and other financial products intended for business owners. First United Bank & Trust, for example, offers flexible lending solutions for businesses, including letters of credit, loans, secured and unsecured credit lines, real estate loans, and more. Equipment financing is available as well if your equipment is in short supply or you are expanding your business. The Heritage Bank of Commerce also offers business lending solutions such as business commercial loans, real estate and construction loans, and SBA lending. Business commercial loans are suitable for short-term projects. If you prefer to take a credit line, the Heritage Reward line of credit goes with financing in the range of $25,001 to $250,000. Lines of credit greater than $250,000 are also provided. Equipment loans are extended as to obtain permanent working capital, finance new equipment, plant expansion, tenant improvements, and corporate acquisition. They can be used to refinance debt as well. Real estate and construction loans are extended to buy land for future residential or commercial development. Developers can apply for single family construction loans for the purpose of acquiring and building single-family units.

Another bank you can check with is Pacific Continental. The bank offers various forms of financing, including commercial term loans, lines of credit, construction/ development loans, and commercial real estate loans. Other lending solutions you can look at are SBA loans, letters of credit, as well as corporate credit cards. You can choose from several business credit cards, such as the Community Based Business Master Card and the Nonprofit Business Business MasterCard.

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