Cathay bank Small Business Loans

Established in 1962, Cathay bank is one of the greatest America-based banks. Cathay Bank is headquartered in Los Angeles, California. Today, the Cathay bank has its branches in several parts of the USA, such as Texas, New York, New Jersey, Washington, Maryland, and so on. The bank's parent organization is Cathay General Bancorp, and it has spread its subsidiary to Hong Kong as well.

Cathay Bank is famous for its mortgage loan facility, personal loans, small business loans, and so on. This American bank provides multiple commercial and industrial lending schemes to the customers. All these loan programs come up with flexible interest rates and tenures. Let’s talk about Cathay bank's small business loans in detail in this article.

1. SBA 7(a) Loans

5 million dollars

10 years for business acquisition, 25 years or more for commercial real property acquisition, 7 to 10 years for leasehold improvement, and so on.

Business debt refinancing, equipment and inventory purchases, business acquisition, working capital, etc.

2. SBA 504 Loans

Up to 5 million dollars. Of these, around 50% is financed by the Cathay bank, 40% of the loan amount is financed by SBA 504 loan, and the rest of the part is a down payment from the borrower.

For the bank portion, maturity will be achieved after 10 years. But, the amortization period is for 25 years. For SBA 504 loans, you get the same amortization period along with maturity at 25 years.

This fund is used for commercial real property acquisition, new construction facilities, commercial mortgage refinancing, heavy construction machinery, and equipment purchases, etc.

Types of Loans Offered by Cathay bank

1. SBA loans

The SBA loan helps entrepreneurs to grow their businesses within a short time. The business owners can use the loan amount to purchase commercial real estate, buy equipment and machinery, and to improve business facilities.

I. SBA 504 loans

The SBA 504 loans are generally used for commercial real property acquisition, construction of the new facility, purchasing heavy construction machinery, commercial mortgage refinancing, and so on.

50% of the loan fund comes from the Cathay bank, 10% of the loan amount is down payment from borrowers, and the rest of the 40% loan is financed by SBA 504 loans.

The 40% of loan amount financed by SBA 504 falls under a fixed rate scheme. The bank portion of the SBA loan can feature either variable rate or fixed rate of interest for the long term.

The amortization period is the same for both SBA 504 loan amount and bank portion. The maturity time for the SBA portion and Bank portion is 25 years and 10 years, respectively.

The SBA 504 loan can be sanctioned for profit-oriented business organizations only. Not only this, but the business has to be situated within the United States of America as well.

II. SBA 7 (a) loans

The SBA 7(a) loan is sanctioned for the purpose of business debt refinancing, purchasing equipment and inventory, commercial real property acquisition, business acquisition, etc.

The SBA 7(a) loan fund is 5 million dollars. The SBA guarantees around 85% of the loan, which is for a maximum of 1.5 million dollars. The SBA guarantees 75% of the loan amount with a maximum worth of 3.75 million dollars.

The loan term is dependent on the use of the funds for the SBA 7 (a) loan. The tenure for working capital is between 5 to 10 years; for fixed asset acquisition, the loan term is 7 to 10 years; for business acquisition, it is 10 years; for commercial real property acquisition, the term is up to 25 years.

The interest rate for SBA 7 (a) loan is completely variable. However, it follows the rates of wall street journal prime and provides some margin.

Your business has to be a profit-based organization located in the USA. Must abide by the SBA guidelines for size standards regarding annual gross sales and employee numbers.

2. Commercial and industrial loans

The Cathay bank commercial and industrial loans feature strong capitalization along with a high lending amount. The Cathay bank will provide you the loan amount on time. They lend money to wholesalers, importers, exporters, manufacturers, distributors, and many others.

The Cathay bank arranges commercial and industrial loans from the minimum amount of 1 million dollars to any higher amount. For such a high amount, you have to talk to the specialists first. But, in the case of an amount lower than 1 million dollars, you can contact the nearest Cathay bank branch at any time.

In the case of real estate term loans, the Cathay bank features maturity at the end of 10 years. The equipment term loans mature between 3 months and 5 years.

For commercial and industrial loans, there are different types of financing. These are import/ export financing, trade financing, seasonal financing, capital expenditure financing, working capital financing, and so on.

3. CRE and Construction

The Cathay Bank conducts commercial real estate financing programs to help the business owners with their needs. With such CRE and Construction loans, you can build new warehouses, new offices, residential complexes, and so on. Here, the Cathay bank acts as a direct lender and takes care of the entire loan package.

In the case of construction financing, the loan maturity is between 1 year to 2 years. For Mini permanent financing, the maturity ranges between 5 years and 10 years. But the amortization period can be up to 30 years easily.

The Cathay bank offers variable rates and fixed rates for CRE and Construction loans.

There is no fixed amount for the CRE and Construction loan. The Cathay bank provides loans according to the business goal and needs of your project.

The Cathay bank approves the CRE and Construction loan for the establishment of single-family residences, retail centers, office buildings, hotels or motels, franchise restaurant buildings, apartment complexes, and so on.

Three are property refinancing, new construction financing, property purchase, build-to-suit construction, and so on.

4. Business banking loans

The Cathay Bank provides business banking loans for ensuring the smooth operation of your business. Such business banking loans cater to the seasonal, short-term, and long-term needs of your company. Apart from flexible lending amounts, business banking loans feature competitive rates and a fast application process.

I. Smart loan

The Smart loan by Cathay bank can be divided into three categories- smart microloan, smart capital loan, and premium smart capital loan.

a) Smart microloan

b) Smart capital loan

c) Premium smart capital loan

II. Professional loan

Cathay bank provides a professional loan for expanding the business, its remodeling and its relocation. However, sometimes for purchasing essential equipment, securing working capital, consolidating business debt, etc., the Cathay bank sanctions the professional loan.

5. Specialty loans

The specialty loans also help the business grow and grab all the opportunities. Before sanctioning the loan, the Cathay bank assigns a team with deep industry knowledge to assess your company's potential. Then, the bank ensures dedicated lending to fulfill all the objectives of the business. The Cathay bank specialty loans can be divided into high-tech lending, asset-based lending, and energy lending.

i. High tech lending

The Cathay bank offers money to businesses in the high-tech industry. As a result, high-tech businesses are capable of driving innovation, executing strategies, and so on.

ii. Energy lending

The Cathay bank is providing loan amounts to the energy sector. This growing energy industry needs a lot of money for exploration, transportation, and production of energy.

iii.Asset-based lending

With this lending, the Cathay bank helps the business owners in fund expansion, meeting operational expenses, etc. Cathay bank's asset-based lending features customizable financing.

What Lending Criteria Does the Bank Have?

The lending criteria for Cathay bank are-

Annual Revenue

The Cathay Bank is quite serious about lending money to only profit-making businesses. So, they assign a team of experts to look into the annual revenue of your business before lending them any money. To avail a loan from the Cathay bank, the business will have to show a steady profit for two consecutive years. After all, the Cathay bank wants to assure that the loan won’t turn into any bad loan for the bank.

So, the bank authorities have checked the business performance of the company for the last few years. They also check the current account, assets, liabilities of the company. They ask the business to submit papers of all the recent transactions along with bank statements.

Business plan

These days, most money-lenders ask for the business plan or business strategy of the company. The Cathay bank also asks for the purpose of the loan and the business goal. They want to know all these things to determine the business stability.


The Cathay bank asks for collateral before sanctioning the loan. This way, the bank won’t have to worry about a bad loan. If the business suffers from loss, the bank will still have the collateral in hand and will be able to fund the damage. These collaterals are assets in simple words.

Credit score

Cathay bank always invests in those business organizations which show good credit scores. This credit score signifies that the business will be able to repay the loan amount to the bank. Today, modern banks generally stay away from borrowers with a poor credit score.

Cathay bank's Interest Rates, Fees, and Loan Options

1. SBA 504 loan program

2. SBA 7(a) loan program

3. Commercial and industrial loan program

4. Commercial real estate and construction

5. Smart microloan program

6. Smart capital loan program

7. Premium smart capital loan program

8. Professional loan

9. Specialty loan

Cathay bank’s Application

Before you come to the Cathay bank branch office, you should pay all your financial dues. The banks will ask you to show various documents such as company registration details, business account statements, current assets, current liabilities, business debts, and other papers. All these documents have to be up to date.

For SBA loans, there are some extra criteria.

Requirements for SBA 7(a) loan program

Requirements for SBA 504 loan program

Summary of Cathay bank’s Loan Options

This American bank named Cathay bank is actually a California-based financial organization. The bank features diversified services such as treasury management, savings account handing, lending loans, etc. The bank provides credit cards and the facility of digital banking to the customers. The popular Cathay bank loans are-

For further information, please check out this link