U.S. Bank Small Business Loans Review
U.S. Bank offers many types of financing for small business. In particular, it is an SBA lender that originates and services SBA loans. It also offers other business loans, including practice loans, commercial real estate loans, equipment loans, and more.
U.S. Bank’s history goes back to the late 1800s when the First National Bank of Cincinnati was established. There have been many mergers and changes since that time, but the U.S. Bank name officially came about at the start of the 21st century.
The headquarters of U.S. Bank is in Minnesota, and it’s the fifth largest bank in the country, with 73,000 employees. U.S. Bank has more than 3,150 branches across the country and hundreds of millions of dollars in assets. There is a substantial U.S. Bank presence in most states in the country. States like California have hundreds of U.S. Bank locations.
Getting a Small Business Loan Through U.S. Bank
There are quite a few types of business loans, financing, and credit available to customers of U.S. Bank. The following are some examples of U.S. Bank financing options.
- Business ownership and expansion: These loans are for small businesses that are just starting or looking to expand. Specific loan options include practice financing for dentists, optometrists, veterinarians, and ophthalmologists. Also available is McDonald’s Franchise Financing, and there are SBA Ownership and Expansion loans available through U.S. Bank.
- Commercial Real Estate Loans: U.S. Bank offers conventional and SBA loans that can be used to purchase or refinance a commercial property.
- Term Loans: Term loans include the Quick Loan for Business as well as a Business Loan. There are also equipment finance business loans available through U.S. Bank.
- Lines of Credit: There are lines of credit available through U.S. Bank that are specifically geared toward businesses, including the Cash Flow Manager Line of Credit, the Business Equity Line of Credit, and the Business Line of Credit.
U.S. Bank is broad and varied in their small business loan and financing products, and they cater to many types of business owners, from medical professionals who want to start or expand a practice to people who want to purchase a franchise.
Basic Information: Rates, Terms, Fees, and Limits
The rates, terms, fees, and limits for the loan products offered through U.S. Bank vary. However, here’s an overview of U.S. Bank’s offerings for small businesses.
U.S. Bank offers several types of business loans depending on the business need. Interest rates will depend on several factors, including the creditworthiness of the applicant.
- Loan amount: Up to $250,000
- Flexible terms and collateral options
- Loan amount: Up to $1 million
- Fixed rates
- Loan amount: Up to $500,000
- Secured by equipment
SBA Express Loans
- Loan amount: Up to $250,000
- Collateral options, including equipment, vehicles, and inventory
Business Lines of Credit
A business line of credit can help you meet your cash flow needs. You might be required to provide collateral or be in business for a certain period of time to be eligible.
Cash Flow Manager Line of Credit
The Cash Flow Manager line of credit can be used for cash flow needs. The credit line can either be secured and unsecured, with the latter offering higher interest rates and lower credit line.
- Line amounts: up to $250,000
- Option for a fixed interest rate
Business Line of Credit
This larger line of credit can be used to make bigger purchases, like equipment or inventory. This is geared toward businesses two years or older.
- Line amount: up to $500,000
- Competitive interest rates
Business Equity Line of Credit
This line of credit taps into the equity on your property to finance your business. This can be used for operating expenses, working capital, and purchasing inventory.
- Line amount: up to $500,000
- Monthly interest-only payments
A Small Business Administration Loan originated by U.S. Bank can have fixed or variable rates, and most for-profit small businesses meet the requirements for these loans. For SBA loans under $250,000, the requirements for applying and approval are less rigorous.
SBA 7(a) Business Loan
The SBA 7(a) loan can be used for the purchase or expansion of a small business.
- Loan amount: up to $5 million
- Terms: up to 10 years for business growth or equipment; up to seven years for working capital or inventory
SBA 7(a) Real Estate Loans
This term loan can be used to buy, refinance, or build commercial real estate.
- Loan amount: up to $5 million (up to an additional $2 million in funding from U.S. Bank)
- Terms: up to 25 years
SBA 504 Real Estate Loan
This term loan can be used to buy, refinance, or build commercial real estate, including an owner-occupied commercial real estate purchase.
- Loan amount: up to $11.25 million
- U.S. Bank loan term: 25 years
- CDC loan term: 20 years
- Equipment loan term: 10 years
U.S. Bank is an approved lender for McDonald’s Owner/Operators, so they have loans specific to this purpose. For example, if a borrower wants to acquire a McDonald’s franchise, there are loans with both fixed and adjustable rates and seven-year terms, with terms up to 10 years for certain expenses. There is also a three-month interest-only option with this type of financing.
It also offers practice financing for eye care, veterinary, and dental practices. Its acquisition financing offers no down payment, equipment financing, and other options. People who have existing debt for their practice can refinance by consolidating business loans and lines of credit into one loan at a potentially lower rate. There is also an option for expansion financing with six months of interest-only payments.
To apply for most types of small business financing, applicants need to submit their information and a business banking professional will contact them.
There are quite a few benefits to using U.S. Bank for small business financing. First is the wide variety of options. There are small business financing options for all kinds of businesses that are at pretty much every stage. There are also a wide variety of applicant requirements and terms.
Another benefit is the fact that U.S. Bank has such a large presence throughout the U.S. This makes it easy for people to visit brick-and-mortar locations if they need to. U.S. Bank also has a good reputation in the U.S., since it is one of the primary financial institutions in the country.
Interest rates are competitive, and U.S. Bank doesn’t seem to charge a lot of additional fees. Since U.S. Bank is larger, it might also be more flexible on lending and application requirements in some cases.
Even though U.S. Bank might be more relaxed on lending standards for small businesses than a lot of smaller banks, you will still have to work with a loan specialist in person for the application process to be completed.
Some customers have also had complaints about feeling like they don’t receive personalized service, which can sometimes be the case with larger companies.
Overall, U.S. Bank offers some quality small business financing products and could be worth considering. Its rates and terms are competitive compared to other online small business loan lenders, but borrowers might not get the same level of highly personalized service they might receive from a smaller or local community bank. In all cases, it’s important to shop around for the lender that will offer you the best rates and terms for your circumstances.