M&T Bank Small Business Loans and Financing Review
M&T Bank is a regional banking institution that offers business owners an array of financial products, competitive rates, and personalized service. The bank offers small business loans, credit cards, and lines of credit, as well as personalized lending decisions at a local level.
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What we like:
Large term loan range
|APR||Not provided on website|
|Loan Amounts||$10,000 – $100,000|
|Term Lengths||Not provided on website|
Originally known as the Manufacturers and Traders Bank, M&T Bank has a long history of helping small business owners grow. Based in Buffalo, NY, and serving the Mid-Atlantic region and Florida, M&T maintains a consistent spot on the Small Business Administration’s (SBA) 100 Most Active SBA 7(a) Lenders list. M&T has over 690 branches and over 1,600 ATMs.
The bank offers a variety of small business lending solutions, including loans, lines of credit, and credit cards. Applications are typically completed in an M&T branch, and all rates and requirements will be discussed during the initial meeting. Here’s a closer look at the options for small business at M&T Bank.
Getting Small Business Financing Through M&T Bank
M&T Bank offers business owners financial solutions for various stages of business development, including products designed to help them purchase, build, or make improvements to property; purchase equipment; cover operational activities; or make everyday business purchases.
Included in M&T’s business product portfolio are SBA-guaranteed loans, secured and unsecured term business loans, owner-occupied commercial real estate loans, and investment real estate loans.
To apply for M&T financing, business owners can contact their local branch or call (800) 724-6070 to set up an appointment with an M&T Bank relationship manager. Loan applications can also be started online; however, applicants must visit a branch to complete the process.
Loan requirements, including credit requirements, are provided during the initial meeting, and thus those interested in applying for a loan through M&T must schedule this meeting to obtain a comprehensive list of requirements; however, it helps to have a business plan as well as financial information available (revenue, debts, etc.).
As previously mentioned, M&T offers a variety of small business financing solutions, and a full list is available on their Business Financing page. Here’s a look at some of the options.
Since M&T is listed among the most active SBA lenders, let’s start with an overview of the three SBA loans offered by the bank. You can use these funds to: purchase land, buildings, or equipment; acquire a business; for working capital or leasehold improvements. An SBA loan can help you start, maintain, or grow your business.
- Term Loans up to $5,000,000
- Rate: For loans terms less than 7 years: up to WSJ Prime + 2.25%
- Rate: For loan terms 7 years or more: up to WSJ Prime + 2.75%
- Upfront Guaranty Fee: 3% for guaranteed portion for loans up to $700,000; 3.5% for guaranteed portion for loans over $700,000; additional .25% for guaranteed portion on loans over $1 million
- Can be used for real estate
- Lines of Credit or Term Loans up to $350,000
- Rate: Loans up to $50,000, up to WSJ Prime + 6.50%; loans more than $50,000, up to WSJ Prime + 4.50%
- Upfront Guaranty Fee: 0% of the guaranteed portion for loans up to $125,000; 2% of the guaranteed portion on loans $125,000 to $150,000; 3% of the guaranteed portion on loans over $150,000
- Guaranty fee waived for businesses owned by veterans
M&T Business Rewards Credit Card
- 13.99% – 20.99% APR
- No Annual Fee
- Unlimited 1.5 points per dollar spent on every purchase
- A one-time 10,000 points bonus when you spend $500 in the first 3 months
- 0% introductory APR on balance transfers and purchases for 12 billing cycles
The M&T Business Rewards Credit Card has a $0 annual fee and offers a lower APR range, from 13.99% – 20.99%, with 1.5 percent cash back on each purchase.
Compare that to the Chase Ink Business Preferred Card with a 17.74% to 22.74% APR, a $95 annual fee, and 1 or 3 rewards points per dollar, depending on the purchase.
While low interest rates and fees aren’t unheard of among the competition—American Express’s Blue Business Plus Credit Card, for example, offers similar though slightly higher interest rates—M&T Bank’s personal approach to business banking may make either card a good potential starting place for business owners.
M&T Unsecured Business Installment Loan
M&T’s Unsecured Business Installment Loans offer small business owners the capital to purchase machinery or equipment, make renovations or expansions, or act as intermediate-term financing. Unlike some small business loans, including M&T’s Secured Term Loan, this loan does not require the use of collateral, which could be an attractive benefit for some business owners, particularly those just starting out.
The loan services financial needs between $10,000 and $100,000.
M&T’s rates are competitive, even when compared to some top online lenders. Wells Fargo, another popular and competitive business lender, advertises rates as low as 7.75% for their unsecured loan, while other top online lenders, like Funding Circle, may advertise fixed rates as low as 4.99% but have rate caps as high as 27.79%.
M&T follows a more hands-on approach to lending, which is great for those looking for a personalized experience. Application decisions are made locally, as opposed to at the corporate level, which might bode well for some applicants. Additionally, M&T relationship managers work closely with business owners to provide guidance and support throughout the lending process.
Depending on your needs and banking expectations, the highly personalized service may be a downside for those looking for limited human interaction and fast capital. Additionally, as a regionally located banking institution, those residing in states outside of M&T’s coverage area may have trouble securing financing.4.54 M&T Bank Small Business Financing
Author: Jeff Gitlen