Cullen/Frost bank, INC., more commonly known as the Frost bank, is a Texas-charted bank headquartered in San Antonio, Texas. The bank has more than 12,00 automatic teller machines, 155 branches (all in Texas), and is a bank holding company. Cullen/Frost bank, INC. is one of the largest banks in the United States.
The Cullen/Frost bank, INC. also offers several types of loans, including business loans and small business loans such as SBA loans. Below we have discussed the SBA loans offered by Cullen/Frost Bank, INC.
23.SBA 7(a) Loan
- The most popular SBA loan
- Longer Amortization
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
24.SBA Express Line of Credit
- Amount: 25,000 to 350,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
- Lower down payments on fixed assets
25.SBA 504 Loan
- Lower down payments
- Amount: 5 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
Types of Loans offered by Cullen/Frost bank, INC.
1. SBA 7(a) Loan
- The most popular SBA loan
- Longer Amortization
- Amount: 5 million dollars
- Purpose: Helps small businesses purchase inventory, equipment, and property and enables them to expand.
2. SBA Express Line of Credit
- Amount: 25,000 to 350,000 dollars
- Purpose: Offers support to export businesses that are looking to grow and compete in markets abroad
- Lower down payments on fixed assets
3. SBA 504 Loan
- Lower down payments
- Amount: 5 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
4. Business Lines of Credit
This loan will give you the option to use funds to fulfill your business needs, such as managing cash flow and expanding your business.
- Funds are accessible at your convenience.
- Monthly payments
- Interest-only lines
- Credit lines start at 5,000 dollars
5. Term Loans
Cullen/Frost bank provides the capital required by your business to buy inventory, new equipment, and commercial vehicles.
- Repayment terms are flexible (1 to 5 years)
- The loan starts at 5,000 dollars
6. Owner-Occupied Real Estate
This Owner-Occupied real estate loan helps you finance real estate, where you occupy 50 % of the property.
- No rent payments
- Refinance, improve and purchase commercial property
- Financing is long-term
- Loan-to-value of 80 % maximum
7. Equipment Leasing and Finance
The equipment leasing and financing provided by Cullen/Frost bank, INC. offer businesses a wide array of options, as the available financing is 100 %. With the help of this loan, a business can fulfill its various requirements.
- Finance computers, construction machinery, medical equipment, and much more
- Frees up cash for the business
- Minimum loan at 50,000 dollars
8. Letters of Credit
Cullen/Frost bank, INC. also offers a letter of credit, ideal for businesses that deal with imports.
- Letter of credit (standby)
- Letter of credit (commercial)
- Letter of credit (export)
9. Export-Import (EXIM) Finance
Cullen/Frost bank, INC is an Export-Import bank and a member of the US Delegated Authority.
- 90 % lending against foreign accounts receivables
- 75 % against export-related inventory
- Direct loans offered to direct buyers of US goods
Cullen/Frost bank, INC. Interests, Fees, and Loan Options
34.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)
35.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)
36.SBA Express Lines of Credit
- Interest Rates: 11.25 % (< 25,000 dollar), 10.25 % (25,0001 to 50,000 dollars), 9.25 % (50,001 – 250,000 dollars) 8.25 % (> 250,000 dollars)
- Fees: <150,000 dollars (2 % guaranteed portion of the loan) 150,000 to 700,000 (3 % guaranteed portion of the loan)
37. Business Line of Credit
- Interest Rate: Variable
- Fees: Not Specified
38.Terms Loans
- Interest Rate: Not specified
- Fees: Not Specified
39.Owner-Occupied Real Estate Loan
- Interest Rate: Not specified
- Fees: Not Specified
40.Equipment Leasing and Financing
- Interest Rate: Not specified
- Fees: Not Specified
41.Letters of Credit
- Interest Rate: Not specified
- Fees: Not Specified
42.Letters of Credit
- Interest Rate: Not specified
- Fees: Not Specified
What Lending Criteria does Cullen/Frost Bank, INC. 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 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.
Cullen/Frost Bank, INC. 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)
For more information, check out the website of Cullen/Frost bank, INC.
Requirements for SBA Loans
- 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
For more information on SBA loans, click here.
Summary of Cullen/Frost Bank, INC. Financial Loan Options
Cullen/Frost bank, INC. is a holding company active in Texas and has more than 155 branches. The bank also offers a wide variety of business loans and is a member of the US Delegatory Authority. Following are the loans that Cullen/Frost Bank offers, INC.
- SBA Loan 7(A)
- SBA/CDC 504 Loan Program
- SBA Express Lines of Credit
- Business Lines of Credit
- Term Loans
- Owner-Occupied Real Estate Loan
- Equipment Leasing and Finance
- Letters of Credit
- Export-Import Financing
Please make sure that all your financial documents and balance sheet are up to date as the bank will review all that. If you have any outstanding debts, make sure you pay them off before signing up for the loan. If any documents are missing, inform the bank or contact the concerned authority.