CIBC Bank USA Group Small Business Loans

CIBC Bank USA is a commercial bank that is headquartered in Chicago, Illinois. It was founded in 1989 and was initially known as ‘PrivateBancorp Inc.’ However, in 2017 it was acquired by CIBC, a Toronto-based bank, for 5 million US dollars.

The CIBC bank provides SBA and other business loans, and we have discussed them below.

CIBC Bank USA has not specified the type of SBA loans they provide and their amount, although they have provided their benefits. Below we have discussed the two most common SBA loans that banks provide.

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.

Purpose

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.

Purpose

CIBC SBA Loan

Features

Benefits

SBA banking clients will receive the following:

Types of Loans offered by CIBC Bank USA

14.SBA 504 Loan Program

15.SBA 7(a) Loan Program

16.Commercial Real Estate

Lending solutions

17.Commercial Lending

18.Revolving Lines of Credit

19.Asset-based lending

CIBC Bank USA Interests, Fees, and Loan Options

Apart from SBA loans and revolving lines of credit, information regarding fees and interest rates of other loans has not been provided by CIBC Bank USA.

1. SBA 504 Loan Program

2. SBA 7(a) Loan Program

3. Commercial Real Estate

4. Commercial Lending

5. Revolving Lines of Credit

6. Term Loans

7. Asset-based Lending

What Lending Criteria does CIBC Bank USA Have?

Below is the basic lending criteria that all the banks follow:

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 way 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 flow 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.

CIBC Bank USA 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)

However, for SBA loans, an additional criterion needs to follow:

Owners who own 20 % of their business are required to guarantee unconditionally. However, if an owner has a controlling interest will be required to submit a guarantee.

Startup businesses will require additional equity of 5 %. Special-purpose also requires a 5 % equity. Thus, the total equity requirement is 10 %.

Requirements for SBA (7a)

Businesses should operate for 'For-Profit.'

Business should be active only in the United States

Significant invested equity

Can use alternate financial resources (personal assets)

Should be able to demonstrate loan need

Funds should only be used for business purposes

Requirements for SBA (504)

Businesses should operate for 'For-Profit.'

Business should be active only in the United States

Has a net worth of fewer than 15 million dollars and more than 5 million dollars

Be an eligible business. Check here

No other sources of finances should be used other than the 504 loan

Funds should only be used for business purposes

For more information, access the website of CIBC Bank USA. Click here

Summary of CIBC Bank USA Loan Options

CIBC Bank USA is a commercial bank and has its headquarters in Chicago. This bank has a diversified line of loans and offers the option of customization for the business. CIBC Bank USA offers loans that match the needs of the business. In addition to the loans, CIBC Bank USA has a team of experts and specialists that are always ready to help out the borrowers.

Below we have listed the loans offered by CIBC Bank USA:

For more information regarding loans, learn more.