BOK Financial Corporation is a bankholding company headquartered in Tulsa, Oklahoma. 50 % of the company is owned by George Kaiser, who took over the bank in 1991 from FDIC. The bank is the largest in Oklahoma, with 14 % of the total deposits.
BOK Financial Corporation also offers loans and lending solutions, such as SBA loans and lines of credit. Below we have discussed all the details regarding the types of SBA loans BOK Financial Corporation offers.
7.SBA (7A)
The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.
- Loan Amount: Not Specified
- Term: 25 years (10 years for non-real estate purposes, 25 years for commercial real estate)
- Loans can be used to purchase equipment, supplies, and material
- Real estate and other properties can also be purchased with the help of this loan
- The loan can be used for construction
- The loan can be used to refinance the debt or acquire a business
- The loan can be used for business expansion
8.SBA/CDC 504 Loan Program
CDC (certified development company) and SBA provide the 504 loan program that can be used to finance fixed assets of a small business such as buildings and other properties.
- Loan Amount: The size of the project is uncapped
- Uses: Buying real estate, equipment, and refinancing commercial real estate.
- Borrowing Limit: Depends on the project
- Term: 20 - 25 years for commercial real estate and ten years for equipment
Types of Loans offered by BOK Financial Corporation
1.SBA (7A)
The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.
- Loan Amount: Not Specified
- Term: 25 years (10 years for non-real estate purposes, 25 years for commercial real estate)
- Down Payment: 100 % financing available
- Loans can be used to purchase equipment, supplies, and material
- Real estate and other properties can also be purchased with the help of this loan
- The loan can be used for construction
- The loan can be used to refinance the debt or acquire a business
- The loan can be used for business expansion
2.SBA/CDC 504 Loan Program
CDC (certified development company) and SBA provide the 504 loan program that can be used to finance fixed assets of a small business such as buildings and other properties.
- Loan Amount: The size of the project is uncapped
- Uses: Buying real estate, equipment, and refinancing commercial real estate.
- Borrowing Limit: Depends on the project
- Term: 20 - 25 years for commercial real estate and ten years for equipment
BOK Financial provides business loans, lines of credit, and equipment leasing on a short-term and long-term basis. The bank has all the expertise and capital to help out businesses.
3.Lines of Credit:
A financial institution gives a flexible loan.
4.Business Loan:
A loan that is intended specifically for business purposes.
5.Equipment Leasing:
Bank leases equipment or finances to different businesses, typically small businesses.
BOK Financial Corporation Interests, Fees, and Loan Options
11.SBA (7A)
- Interest Rate: 4.25 % for < 25,000 dollars, 3.25 % for 25,0001 to 50,000 dollars, 2.25 % for > 50,0001
- Fees: 0.25 % (short-term loan) 3.5 % (1000,000 dollars)
12.SBA/CDC 504 Loan Program
- Interest Rate: 2.4 % (Ten-year term), 2.35 % (25-year term), 2.41 % (also for 25-year term)
- Fees: 0.25 % (Loan servicing) 0.5 % (SBA Guarantee)
13.Business Loans
- Interest Rate: Not Specified
- Fees: Not Specified
14.Small Business Lines of Credit
- Interest Rate: 8.5-80 % (Medium-term loans), 7-30 % (Online term loans) 7-99 % (Merchant cash advances)
- Fees: None
15.Equipment Leasing
- Interest Rate: Not Specified
- Fees: Not Specified
What Lending Criteria does BOK Financial Corporation Have?
Below is the basic lending criteria that all the banks follow:
- Credit Score
- Annual Revenue
- Business Plan
- Collateral
- Time in Business
Credit Score
Credit is the most important component of all types of businesses, whether they are small or large. Lenders will always analyze the business's credit score and then decide whether it can pay the loan or not. Therefore, the best to maintain a healthy credit score is to pay your dues on time.
Credit scores can also be easily obtained from several agencies such as Equifax, Dun & Bradstreet, and Experian. Another way of maintaining a positive credit score is to have a low debt-to-income ratio. Lenders will not invest in businesses that don't have a good credit score.
Annual Revenue
Another important factor that the lenders will review is the annual revenue of the business. Most lenders will only lend to those businesses that have been profitable for the last two years or more. Businesses need to make sure that all the financial statements are accurate and up to date.
Lenders will also look at specific details such as the current account (current assets divided by liabilities) and ask for copies of bank statements and transactions. However, businesses will only be eligible for a loan if their cash flowing is growing.
Business Plan
A minority of lenders might not ask for a business plan, but most of them do, and businesses need to come with a clear and concise proposal. Usually, lenders require the business plan to know the purpose of the loan and discuss the business's stability.
One of the main components of business plans is the resumes of managers and staff. However, despite having a clear business proposal, the lenders will still ask for proof of the staff's ability and relevant credentials and experience.
Collateral
Collateral is an essential requirement, and most lenders will not provide a business loan if it cannot give collateral. Collateral can be anything like equipment or property. The collateral will also decrease the risk for the lender as it will have an asset in hand, so if the company fails to pay the loan, the collateral can be paid to fund the damages.
The owner of the company needs to provide a personal guarantee and will also need to submit some essential documents:
- Driver’s license
- Business license
- Tax returns (personal)
- Tax returns (business)
- Insurance plans of business
- Records for payroll
- Detail of owner
- Other financial obligations
Time in Business
Most banks are hesitant to lend loans to new companies that have been active for just a few months. Lenders cannot trust small businesses or startups that have just entered the market because they don't have a proper credit score and the cash flow is usually unstable. Banks will most likely lend to businesses that have been active for more than two years.
SBA 7 (a) Eligibility
- Manufacturing: 500 to 1500 employees
- Whole: At least 100 employees
- Services: Three years of average gross sales of 3.5 to 14.5 million dollars
- Retail: Three years of average gross sales of 5 to 20 million dollars
SBA 504 Eligibility
- One job opportunity should be retained or created for a 50,000 dollar loan
- Property must be at least 51 % business-occupied; for construction, the property should be at least 60 % business-occupied and 80 % in the next three to ten years.
BOK Financial Corporation Application
Following is the application procedure of all the banks that borrowers have to follow:
Before you apply for a loan, ensure that all your documentation is up to date. Also, organize all the documents properly, and if some essential documents are missing, contact the relevant authorities. Collect all the financial information about your business and pay all the dues as soon as possible.
- Personal and Business credit scores and history
- Account statements of the business
- IRS documents, tax returns of the business, and the owner as well.
- Other important financial documents such as unpaid invoices, credit card details, and accounts receivable.
- Legal contracts (leasing, franchising, incorporation)
Requirements for SBA (7a)
- SBA loan package application
- Business should be active for at least three years
- Submit tax returns
- A breakdown of the financial information about the business
- Detailed information regarding how the funds will be utilized
- Copy of sales, construction contracts, sales, and other transactions
- For startup business: a business plan
Requirements for SBA (504)
- Proof of ability to repay the loan and on time
- Information regarding projected cash flows of the business
- The character of the business should be really good. SBA maintains 'Statement of Personal History
- Relevant staff expertise
- A feasible business plan
For more information, check out the website of Bok Financial Corporation. For information regarding SBA loans, click here.
Summary of BOK Financial Corporation Loan Options
BOK Financial Corporation offers personal and business loans that are designed for keeping all aspects in mind. For small businesses, cash is low, so they need a loan that fits their requirements, and BOK Financial Corporation has lending solutions to aid them. Below are the loans that BOK Financial Corporation offers:
11. SBA 7(a) Loan
12. SBA 504 Loan
13. Business Loan
14. Lines of Credit
15. Equipment Leasing
The rates, payments of these loans vary considerably; however, lines of credit have no annual fees. Whatever loan you choose, study the eligibility criteria, especially for SBA loans, since they go into technical details of the business. Study the criteria and process of application before choosing a loan. Prepare all the necessary documents, and contact the bank or the concerned authorities if there are any concerns.