M&T Bank is one of the leading banks in the country, with a significant focus in funding small businesses. Their SBA Loans are specifically designed for borrowers who do not qualify for the loan products offered by conventional lenders. Their loans are backed by the Small Business Administration and attract lower interest rates compared to other types of business loans.
Although the loans are meant for all small businesses that meet M&T flexible guidelines, business owners domiciled outside the banker’s preferred region are not qualified to receive the loan even if they meet other lending requirements. The bank only issues loans to businesses in the following States.
- Baltimore D.C
If you reside in any of these places and own a business, you can apply for a small business loan.
Types of Loans offered by M&T Bank
Here are the loans offered by M&T Bank
SBA Express Loan
The SBA Express Loan is issued to business owners for the purpose of meeting their financial responsibilities. As a business owner, you can use SBA Express to purchase equipment, fund Working capital, or acquire assets for your business. The good thing about SBA Express is that you are not restricted to what you can or cannot do with the money. Once the loan is approved, the spending prerogative lies with the borrower. M&T operates an accelerated process as far as the application process is concerned, so a successful applicant can get his other application approved in just a few days. The maximum amount you can get under SBA Express is $350,000.
SBA 7 (a) Loan
Another small business loan offered by M&T is the SBA 7(a) loan. A successful applicant can receive up to $5 million as a term loan. If the loan is to fund non-real estate acquisitions and business operations, the maximum tenure limit is 10 years. However, if the loan is to acquire real estate for the business, the maximum tenure limit is 25 years. Unlike the SBA Express, this loan is a term loan specially issued for the purpose of financing startup businesses, real estate acquisition, or business expansion.
SBA Paycheck Protection Program
The Paycheck Protection Program was created by the government in conjunction with participating banks to help them stay afloat at the height of the pandemic. This program does not have a maximum or minimum amount offered to borrowers but is issued based on need and repayment capacity. To access this loan, you will have to speak to an M&T official to help you pick from among the long list of options that fit your unique requirements.
Unsecured Business Installment Loan
This loan is for small-scale enterprises in need of cash flow to fund short-term obligations. The credit ranges from $10,000 to $100,000 minimum, and it is ideal for equipment procurement, renovation of business property, or short term financing. Borrowers don’t require collateral to apply for this loan because it is unsecured. Furthermore, the interest on the loan is quite low and affordable. However, to apply for it, you need to have a Checking account with M&T Bank, and the repayments will be done by deducting it from your account balance.
This unsecured loan is charged at a flexible term, fixed, or variable interest rate. The maximum tenure is 10 years.
What Lending Criteria does the Bank Have?
M&T doesn’t publish the criteria borrowers must meet to qualify for an SBA loan. This is because the bank operates a one-on-one policy, so the applicant must first contact the bank by placing a call to the banker or visiting an M&T branch in person. But what we do know is that the applicant must be eligible for the loan under the special SBA guidelines as set up by the government.
Why the government?
The Small Business Administration is a government agency that provides lenders with a guarantee for loans issued to small business owners in the country. This special purpose loan is meant for businesses that lack the collateral or stringent requirements for conventional business loans. SBA Loans carry very low interest rates, and the government provides guarantees to participating banks for each loan issued to a business owner. Since the government provides guarantees for the loans, issuing banks have to abide by its guiding principles when issuing loans.
The sole aim of the Small Business Administration program is two fold. The first one is to stimulate the growth of small businesses, keep them afloat, and help them grow by providing access to capital. The second one is to grow the economy by creating jobs indirectly through the growth of small businesses.
Some of the basic criteria for SBA Loans are as follows.
Two years existence: The business must have been in existence for at least 2 years before applying for the loan. Businesses that have operated in less time do not qualify.
High-risk Industries: The business has to operate in a high-risk industry. High-risk industries are industries that are susceptible to volatile price changes, huge layoffs, and general economic factors. For example, restaurants and hotels are highly impacted by high interest rates and the unemployment rate more than any other Industry. The retail and manufacturing industry are also examples of high risk industries.
Collateral: The applicant has to prove that he or she cannot get the loan from anywhere else due to collateral shortfalls. This may be as a result of not having an asset of equal value to the loan amount required or having none at all.
Location: The business must be domiciled in the United States and not elsewhere. In the case of M&T Bank, the business must operate only in the approved states of Delaware, Baltimore, Philadelphia, and Buffalo.
M&T Bank’s Interest Rates, Fees, and Loan Options
M&T Bank does not make public the interest rates charged on small business loans issued to borrowers. This information is not published on its website or any other platform. To find out more about the interest rate, fees, and other loan costs, do well to contact the bank for more information.
M&T Bank’s Application
Like we pointed out in a previous section, M&T Bank is not available in all 50 states of the federation but only in selected locations like New York, New Jersey, Connecticut, Maryland, Delaware, Pennsylvania, District of Columbia, Virginia, and West Virginia. The bank operates an online and offline application process.
For the online process, you will have to visit their official website and contact an agent via the online platform. The agent will take you through the process and provide you with a link to fill in and submit your details. After that, an interview will be scheduled for you, and your application will be processed.
The offline application involves applying in person. Simply walk into an M&T Bank where you live or operate in any of the approved states. Request to speak with an agent who will provide you with an application form to fill. You can also use the opportunity to ask for relevant information like the application fee, interest rates, and loan tenure for each loan. The agent will help you pick the right loan for you and guide you through the process.
As for the required documents to be submitted alongside the application, the agent will also let you know the ones to submit. On average, common documents requested include
- Business statement of account for the past two years
- Income tax Returns
- Evidence of investment equity by the owner
The application process takes only 2-3 business days maximum, and you will receive feedback from the bank regarding the success or failure of your application.
Summary of M&T Bank’s Loan Options
M&T Bank is a commercial bank with a healthy partnership with the Small Business Administration, and together, both entities issue loans to small businesses domiciled in M&T approved regions. The bank issues the loan with backing from the Federal government. There are varieties of SBA Loan options you can apply for, and each option has a different minimum and maximum amount. Furthermore, they all attract different interest rates. To find out more about the application fees and interest rates for each loan option, you will have to speak with an M&T agent.
For more small business loan options by different lenders or bankers, kindly click this link.
SBA loans are the biggest help small businesses can get to be established. Lenders curate the loan, and the SBA repays any loss. Are you seeking a small business loan for your business too? Then, you’ve arrived at the right place.
The Associated Banc-Corp offers loans to small business owners at reasonable interest rates perfect for start-ups or expanding an established business. However, you might be interested in knowing the specialty that makes Associated Banc-Corp stand out from other banks.
Many factors make this bank unique and reliable. Even if you are new to loans, the bank associates make it a cakewalk for you.
An Overview of Associated Banc-Corp’s Loans
The Associated Banc-Corp is a Wisconsin-based bank that offers you a Midwest modern banking experience. Small business, corporate, and even commercial customers will have a positive experience banking here.
They serve everyone within and beyond the Midwest. With years of experience in the banking field, the bank aims at shaping the future of its client’s banking experience. They offer their services to colleagues, customers, and communities.
The Associated Banc-Corp belongs to the Top 50 recognized bank institutions. They offer SBA loans to small businesses, partners in business, corporate work, and other reasons. The large team of the bank is trained and expected to work to the best of your interest.
Types of Loans Offered by Associated Banc-Corp
While you realize the importance of SBA and the loans for small businesses, you must also be aware of the different types of loans within the same arena.
The banks offer pretty much the same kind of loans when it comes to small businesses. However, it is the services of each bank and the loan rates that distinguish them from the rest.
SBA Express Loans
SBA Express Loans help you access expedited lines of credit. You can use this type of loan to invest in acquisitions, expansions, equipment, capital, real estate, and franchise financing.
- Express loans amount range up to $350,000.
- The repayment term is usually between 1-25 years. It depends on the loan size.
- The rate of interest can be both fixed or variable.
- If you choose a loan term of fewer than 15 years, you are not charged prepayment penalties.
- Express loans are better preferred with a longer repayment term along with a small down payment.
SBA 7(a) Loans
If you already have a well-settled business and are planning to expand it further, SBA 7(a) loans are ideal for your needs. These loans help finance equipment, working capital, commercial real estate, and franchise.
- Typically, SBA 7(a) loans fund up to $5,000,000.
- The repayment term for such loans ranges from 1-25 years.
- Interest rates for these loans are either fixed or variable.
- You benefit from no prepayment penalty if you choose a smaller repayment term of fewer than 15 years.
- A lower down payment and longer repayment loan term is ideal for SBA 7(a) loans.
SBA 504 Loans
Are you planning to launch a long-term business? Then, you’d require a long-term financing source as well. And there is no better option than SBA 504 loans.
Whether it is for financing major renovations, constructions, heavy equipment, or any commercial real estate, this loan backs you up in the long term.
- SBA 504 loans allow you to borrow up to $6,500,000 from the bank.
- You have different repayment options, such as 10, 20, and 25 years.
- The repayment term for such long-term loans is fixed.
- Interest rates are also fixed for the long term.
- A combination of a longer repayment term and lower down payment is ideal here.
What Lending Criteria Does the Bank Have?
Associated Banc-Corp has set the ideal criteria required to apply for SBA loans in any other bank. Here’s what you need to qualify for an SBA loan at the bank.
- Records of at least three months’ bank statements
- One year into the business
- A revenue record of a minimum of $100,000
- Recent payment history
Legal and Financial Documents
Paperwork might be the conventional way to go about legal work. But it is still the clearest way of getting the best results and maintaining financial records. While applying for a small business loan, you’d require the following legal documents at hand.
- Financial projections
- A resume
- Articles of incorporation
- Commercial leases
- Business license
- Your ID proof
- Personal and business tax returns
- Bank statements for both your personal and business accounts
- Income statement and balance sheet
Associated Banc-Corp’s Interest Rates, Fees, and Loan Options
Not only are SBA loans the best loans for financing your small businesses, but they are also the most affordable ones in banking. The interest rates of SBA loans are reasonable and targeted to help small business owners establish or expand their businesses.
SBA Express Loans Rates
SBA Express loans are the extra something to the generic loans, the SBA 7(a) loans. These are the subprograms of loans for small business pursuance.
- Usually, Express Loans enable you to borrow amounts up to $350,000.
- The application process and processing of the loan are faster for these loans.
- Express Loans are much higher than the other types of loans in this sector.
- The prime rate of interest for SBA Express Loans usually ranges from 4.5% to 6.5%.
SBA 7(a) Loan Interest Rates
SBA 7(a) loan interest rates depend upon the current U.S. prime rate in the market. The banks consider the prime rate the ultimate limit to impose the interest rates on commercial and consumer loans.
- The prime rate of interest for SBA 7(a) is 3.25%.
- The interest rate for such loans will range from 6% to 8%.
- Additionally, the banks cannot charge you more than the limit of 8%.
- SBA loan rates work on both fixed or variable rates of interest.
- Fixed-rate of interest is ideal for large business loans.
- Loans below the amount of $50,000 are usually charged a variable rate of interest.
SBA 7(a) Loan Fees
The SBA 7(a) loan fees act as the guarantee of the loan. It is influenced by the borrowed amount and the maturity date. The advantage you receive here is that SBA bars the maximum amount from being charged for the guarantee fee.
- You need not pay any fee if your loan amount is below $150,000.
- An amount more than $150,000 for a loan that matures within a year requires you to pay 0.25% as a fee.
- Loans higher than $150,000 and below $700,000 that mature after more than a year charges you 3% fees.
- A loan amount between $701,000 and $1 million needs you to pay a fee of 3.5%.
- Loans beyond $1 million require you to pay 3.75% as a guarantee fee.
SBA 504/CDC Loan Rates
SBA 504 loans are made of two parts. The bank does 50% of the financing, and 40% is funded by a non-profit certified development corporation (CDC). The remaining 10% is the down payment you make for the small-business loan.
- The CDC portion of the SBA 504 loan charges the interest rates separately.
- A 10-year SBA loan term charges a five-year treasury rate of 2.23% or more.
- Other loan terms of 20 or 25 years charge 10-year treasury rates of 2.36% and 2.39%, respectively or more.
- Overall, the rate of interest for the SBA 504 loan ranges between 3% and 4%.
- Additionally, these are fixed rates of interest.
- You can negotiate the interest rate for the bank’s portion. However, they’re usually below 10%.
SBA CDC/504 Loan Fees
The fees set for SBA CDC/504 loans have a simple structure.
- The current fixed service fee is 0.3205%.
- 0.625% is the CDC servicing fee.
- You also need to pay a 0.5% third-party lending fee. It is a one-time payment.
- An amount less than 1% goes for the central servicing agent fee.
- The current guarantee fee ranges around 0.5%.
Besides these fees, you may also need to pay additional costs incurred separately from the SBA, CDC, or the bank.
Associated Banc-Corp’s Application
Applying for the Associated Banc-Corp Bank’s small business loan is similar to applying for other banks’ loans. All you need to do is fill up a simple application form and provide the legal and financial documents to validate your loan.
The bank requires information about your business, such as its name, address, tax ID, etc. Financial statements related to your business are necessary. The business owners’ names and their details are an absolute must, including their Social Security Number.
Once you are done providing the details and filling up the application, preview it before submission.
You should ensure that you have fulfilled all the requirements to apply for the loan to be approved. Make sure not to leave out any document or field of the application blank. This might hamper your chances of getting the loan approved.
Summary of Associated Banc-Corp’s Loan Options
Comparing the different loan options for small businesses is always wise to get the best of deals. However, Associated Banc-Corp extends the market rates of interest for all types of SBA loans they got to offer.
Nevertheless, if you want to play it safe, you should consider checking out other options as well. For this purpose, you can read other reliable reviews of loan options.