Online Banking

Business Loans and Credit

Whether you are operating a mid-sized business with the potential for serious expansion or your large company is expanding into new markets, Anchor Bank has the resources your organization needs to take that next step. You have ambitious goals for your business and our team is here to help you meet them with loans available up to $10 million. Learn more about the financing options we provide businesses below.

Lines of Credit

A working capital line of credit is a fast, convenient, and affordable way to access the funds your business requires. A line of credit provides ready cash to help you meet short-term funding needs, such as increasing inventory, dealing with seasonal cash flow issues, or taking advantage of unexpected opportunities.

How it works for you
• Anchor provides your business access to working capital at a reasonable cost.
• You can borrow the amount that you need when you need it.
• You can access your line by writing a check or making a phone transfer to your Anchor Bank business checking account.

Key benefits to your business
• You only pay interest on the outstanding principal balance each month.
• Fast and convenient access to the credit line.
• Use for important business opportunities and short-term funding needs.
• Link to your business checking account to minimize interest expense and overdraft fees.
• Loan amounts up to $10 million

 

Term Loans

Term loans are an excellent solution for many borrowing needs. With a term loan, your business can repay the loan over a specific period of time (term) with set monthly payments. Whether you require new or upgraded equipment, extended working capital or plan to expand your business, a term loan is an easy way to get the money you need quickly.

How it works for your business
• Talk to a Business Banker to determine the loan that’s right for your business
• Finance the purchases you need to grow your business

Key benefits to your business
• Low monthly payments at fixed interest rates
• Predictable payment amounts to help forecast your cash flow needs
• No hidden fees
• Loan amounts up to $10 million
• Up to 10 year amortization

Real Estate Loans

Our Commercial Real Estate Mortgages make owning, refinancing, or renovating commercial real estate easy and affordable. With either our conventional or SBA programs, you’ll benefit from flexible financing options that include competitive rates, low monthly payments and long amortizations.

How it works for you
• Contact a Business Banker to structure a loan that meets your unique loan needs
• Use your mortgage to refinance or renovate your commercial real estate key 
 
Key benefits to your business
• Low monthly payments
• Flexible down payment requirements
• Loan amounts up to $10 million
• Up to 25-year amortization
• Competitive fixed or variable rates
• Flexible owner-occupancy requirements

 

SBA 7(a) Loans

The SBA 7(a) program serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

How it works for you
SBA 7(a) loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for most business purposes and 25 years for commercial real estate loans.
• Eligibility – All businesses that are considered for financing under SBA's 7(a) loan program must: meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment. Certain variations of SBA's 7(a) loan program may also require additional eligibility criteria including type of business and use of proceeds. Repayment ability from the cash flow of the business, good character, management capability, collateral, and owner's equity contribution are all important considerations. All owners of 20 percent or more are required to personally guarantee SBA loans.
• Maximum loan amounts – SBA's 7(a) Loan Program has a maximum loan amount of $5 million dollars. SBA's maximum guaranty is $3.75 million.
• Interest rates – Interest rates are negotiated between the borrower and the lender but are subject to SBA maximums, which are pegged to the Prime Rate. Interest rates are variable, and generally range between the Prime Rate + 1% to the Prime Rate + 2.75%. On loans below $50,000 the rates can be higher.

Key benefits to your business
• Lower down payment – SBA requires lower down payments than most conventional loan products allowing the business to retain more cash.
• No balloon payment – Loan is paid off at the end of the amortization period.
• Cash conservation – You repay the loan with smaller payments over a longer period of time.
• Easier qualification – Businesses with less collateral than required for conventional loans may qualify for SBA-guaranteed loans, however if the loan is not fully secured all business and personal assets of the owners must be offered.

 

All SBA terms and conditions are subject to change as mandated by the U.S. Small Business Administration

SBA 504 Loans

The SBA 504 Loan Program is a Small Business Administration program designed to promote economic development within our community. The loan program is facilitated with a partnership of local banks and community development companies.

How it works for you
Eligible projects are funded with 50% from a conventional loan at market rates and terms, up to 40% from a SBA funded loan (backed by a 100 percent SBA-guaranteed debenture) with a low 20-year fixed rate and as little as a 10% down payment from the business. Proceeds from a SBA 504 loan must be used for large fixed asset projects such as purchasing land and improvements, including existing buildings, grading and street improvements, utilities, parking lots and landscaping as well as soft costs associated with the project, construction of new facilities, or modernizing, renovating or converting existing facilities or purchasing long-term machinery and equipment. Under certain circumstances debt refinancing may be included as part of an expansion project. SBA 504 loan proceeds also cannot be used for leasehold improvements to space leased to a non-affiliated tenant.
• Eligibility – To be eligible for the 504 Loan Program, businesses must operate for profit, meet minimum credit standards and be deemed a “small business” as defined by the SBA. Loans cannot be made to businesses engaged in speculation or investment in rental real estate. In order to meet the job creation criteria for the community development goal generally, a business must create or retain one job for every $50,000 provided by the SBA, except small manufacturers, which require additional job creation and/or retention requirements.
• Minimum/maximum SBA loan sizes – An SBA loan is typically 40% of the project. The minimum SBA loan is $50,000 and the maximum to most applicants is $1.5 million. For companies meeting a specific public policy goal, the maximum loan is $2 million and companies defined as “small manufacturers” have a maximum loan of $4 million.
• Collateral – Typically the assets being financed are used as collateral. Personal guaranties of the principal owners are also required. If the business has elected to have a separate entity own the real estate; the operating company will be required to be a co-borrower or corporately guaranty the loans. All principal owners over 20% in both the real estate entity and the operating company will be required to offer personal guaranties.
• Terms, interest rates and fees – Interest rates on the SBA 504 loans are pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available.

Key benefits to your business
SBA 504 loans are distinguished from conventional loans in the following ways:
• Lower Down Payment – Allows you to conserve valuable operating capital by injecting as little as 10 percent of total project cost. Loans to newer companies and special purpose real estate may require more down.
– You can better manage your cash flow because you know the amount of your mortgage payments for the next 20 years.
• Low interest rate – Even with all the fees and closing costs included in the rate, it is still a low rate for a subordinate mortgage loan, particularly for small business.
• All project costs can be financed – Including land and building, construction costs, as well as soft costs such as title insurance, legal, appraisal, environmental and bridge loan fees. Closing costs may also be financed.

 

All SBA terms and conditions are subject to change as mandated by the U.S. Small Business Administration

Loans subject to credit approval