Comerica Small Business Loans

Comerica is a financial services center headquartered in Dallas, Texas, and has offices in California, Florida, Texas, Michigan, and Arizona. In addition, the bank has select operations in Canada and Mexico as well.

Comerica also offers SBA loans, small businesses, and other types of loans. To contact an SBA officer at Comerica, click here. Below we have discussed the features of the SBA loan offered by Comerica and the types of SBA loans that most banks generally lend.

Comerica Small Business Administration (SBA) Loans

Purpose

Features

Types of Loans offered by Comerica Bank

1. Small Business Loans (SBA)

Purpose

Features

2. Term Loans

Purpose

Purpose

Features

3. Business Line of Credit

Purpose

Collateral options

4. Paycheck Protection Program (PPP) Loan Forgiveness

Comerica Interests, Fees, and Loan Options

1. SBA (7A)

2. SBA/CDC 504 Loan Program

3. Paycheck Protection Program (PPP) Loan Forgiveness

4. Term Loans

5. Business Line of Credit

What Lending Criteria does Comerica 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 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:

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.

Eligibility Criteria for Paycheck Protection Program

Following borrowers qualify for loan forgiveness during the 8 to 24 period of loan disbursement:

Loan Forgiveness Criteria

In Round 2 of the PPP loan program, the criteria for forgiveness were also revised. Under the new changes, the businesses/borrowers spent 60 % instead of 75 % of the loan on their business needs (payroll expenses, mortgage costs, rent).

Eligibility Criteria for Paycheck Protection Program

Following borrowers qualify for loan forgiveness during the 8 to 24 period of loan disbursement:

Comerica 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.

For more information, please log onto the website of Comerica. Click here.

Requirements for SBA (7a)

Requirements for SBA (504)

Summary of Comerica Loan Options

Comerica is one of those banks that is really helping out struggling businesses during the pandemic, especially small businesses. While the Paycheck Protection Program (PPP) has ended, the bank will still help the borrowers through the PPP loan forgiveness initiative. Below is a list of the types of loans that Comerica offers:

Interest and fees vary depending on the loan amount; unfortunately, Comerica has not stated an official amount. For PPP loan forgiveness, interest is fixed at 1 %, whereas the fees vary. Interest rate is also fixed and flexible for Term loans, and payments are to be paid monthly.

Business lines of credit interest rates depend on the type of loans, such as:

Usually, fees are not charged for business lines of credit; however, some banks might charge an annual fee. As always, study all the details and procedures thoroughly, discuss them with the bank, make sure you fulfill all the requirements, and then apply for the loan.

For more information regarding loans, learn more.