If you own a small business, getting a loan might seem daunting. Fortunately, Minster Bank’s small business loan program can make it simpler.
How To Apply for Minster Bank’s Small Business Loan Program
With a maximum loan amount of $25,000, our program offers a smaller-scale loan than a traditional business loan. Here’s how to apply:
- • Make an appointment with a Minster Bank representative
- • Collect three years’ of your personal and business tax returns
- • Provide a personal financial statement
After you apply for a loan for your small business, we’ll perform a financial analysis to evaluate your ability to repay the loan.
What Are The Benefits Of the Small Business Loan Program?
Minster Bank’s Joel Bopp, a senior commercial lender, says the small business loan program will encourage the expansion and creation of small businesses in low- and moderate-income areas.
So, what are the benefits for business owners?
“This is a special program set up to try to meet smaller needs of a business,” Bopp explains. “Some of our other competitors might not want to do smaller loans. They want to do loans that are larger than $25,000, and we feel that this program meets a need by providing bank capital that otherwise may be difficult to find.”
A small loan can also help you get the cash in hand faster and be faster to pay back than a large loan.
What Are The Requirements For A Small Business Loan?
To be considered for a loan through the small business loan program, some requirements include:
- • Maximum $25,000 loan amount
- • Minimum 10 percent owner equity in the project (20 percent for business start-up)
- • Storefront business location (not home-based)
- • Maximum term of 60 months
- • Personal guaranty required
- • Minimum credit score of 660 with no slow pays or collections in the last 12 months
- • Revenues of less than $300,000
- • Minimum debt coverage 1.0 to 1.0
Eligible loan requests include:
- • Building, including construction, rehabilitation and capital leasehold improvements;
- • Purchase machinery and equipment with a useful life of more than five years;
- • Revolving lines of credit for business working capital
Grow Your Small Business With Minster Bank
A good understanding of your business and a vision of how you want your business to grow is vital to its success, Bopp says.
“Along with a knowledgeable banker, having a strong accountant or financial person and good legal representation are all very important in helping your business grow,” Bopp adds.
And as your small business grows, Minster Bank will be here to help.
“Our hope is that by getting in at the ground level by helping the business, we’re developing a long-term relationship with the business owner,” Bopp says. “Hopefully, we can meet all their needs as their business grows and strengthens; we can cultivate a stronger relationship.”
Contact us today to learn more about the small business loan program and how we can help you.