First Citizens BancShare Small Business Loans

First Citizens BancShares is a withholding bank that has its headquarters in Raleigh, North Carolina. The main subsidy of First Citizens BancShares is First Citizens Bank and is one of the largest banks in the United States.

First Citizens BancShares also offers various business loans, including small business loans that are SBA-backed. Below we have discussed all the small business loans offered by the bank.

5. SBA (7A)

The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.

6. 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.

Types of Loans offered by First Citizens BancShare

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.

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.

3. Business loans

Designed to meet all business-related challenges.

4. Business Lines of Credit

Easily access funds that can manage cash flow fluctuations

5. Commercial Letters of Credit

Improve cash flow and expedite payments

First Citizens BancShare Interests, Fees, and Loan Options

6. SBA (7A)

7. SBA/CDC 504 Loan Program

8. Business Loans

9. Small Business Lines of Credit

10.Commercial Letters of Credit

What Lending Criteria does First Citizens BancShare 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 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:

Driver’s license

Business license

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.

SBA 7 (a) Eligibility

SBA 504 Eligibility

First Citizens BancShare 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, check out the website of First Citizens BancShares. For information regarding SBA loans click here.

Summary of First Citizens BancShare Loan Options

We have identified five types of loans that First Citizen BancShare offers, and they are listed below:

6. SBA 7(a) Loan

7. SBA 504 Loan

8. Business Loan

9. Small Business Lines of Credit

10. Letters of Credit

Each loan that is provided by First Citizens BancShare has a specific purpose, and the rates and down payments vary. Some loans might even cut taxes, and charge a small amount of fee. SBA Loans have a fixed cut, about 0.25 or 0.50 % that they take from the loan, whereas lines of credit have no annual fees.

As always, discuss the criteria and process of application before choosing a loan. Prepare all the necessary documents, and contact the bank or the concerned authorities if there are any concerns.

For more information regarding loans, learn more.