Fifth Third Bank Small Business Loans

Fifty-Third bank is a subsidiary of Fifth Third Bancorp and is headquartered in Cincinnati, Ohio. This bank is a bank holding company and offers many types of business-related loans as well. Small business loans are discussed below:

3. 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

4. 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

5. SBA Express Loans

This is a term loan or a line of credit and is a simple way of receiving amortized financing that the government backs.

Types of Loans offered by Fifty-Third Bank

6. SBA (7A)

The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan. Later in this article, we will discuss the requirements businesses need to fulfil to obtain a loan.

Purpose

7. 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

8. SBA Express Loans

This is a term loan or a line of credit and is a simple way to receive amortized financing that the government backs.

The Fifty-Third Bank has partnered with the LISC Greater Cincinnati, First Financial Bank and Greater Cincinnati to form a fund of 3.5 million dollars called the 'Cincinnati access fund'. This fund provides finances for Mirco-owned businesses and Term loans.

9. Micro Loans

10.Term Loans

Fifth Third Bank Interests, Fees, and Loan Options

5. SBA (7A)

6. SBA/CDC 504 Loan Program

7. SBA Express Loan

8. Micro Loans

9. Term Loans

Interest Rates: 6 to 9 %

Fees: Unknown

What Lending Criteria Does Fifth Third Bank 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:

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.

Requirements for SBA (7a)

Requirements for SBA (504)

Fifty-Third Bank 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.

Requirements for SBA (7a)

Requirements for SBA (504)

For more information, please log onto the website of HSBC USA. Click here. For details regarding SBA loans, click here.

Summary of Fifty-Third Bank Loan Options

Fifth Third Bank offers the following loans:

Fifth Third Bank is one of those banks committed to helping small businesses buy, offering microfinance loans, term loans and SBA-backed loans. As always, before selecting a loan, discuss with the bank.

For more information regarding loans, learn more.