Glacier Bancorp, Inc. is headquartered in Kalispell, Montana. The bank is a Montana corporation incorporated and was founded in 2004. The bank is a successor to the Delaware corporation that was incorporated in 1990.
Glacier Bancorp, Inc. offers business loans, real estate loans, and SBA-backed loans. The bank is No.83 on the list of SBA lenders. However, Glacier Bancorp has not shared details regarding the type of SBA Loans they offer, so we have discussed the two most common SBA loans below (SBA 7A & SBA 504):
SBA (7a)
Benefits
- Purchase and refinancing of real estate
- Business Expansion
- Business or partner buyout
- Purchase of equipment
- Franchise financing
SBA 504
Benefits
- Purchase of real estate
- Construction
- Purchase of equipment
- Refinancing
Glacier Bancorp SBA Loan Amount and Term
- Loan Amount: Up to 50,000 dollars
- Loan term: Seven years or greater
Types of Loans offered by Glacier Bancorp, Inc.
SBA (7a)
Benefits
- Purchase and refinancing of real estate
- Business Expansion
- Business or partner buyout
- Purchase of equipment
- Franchise financing
SBA 504
Benefits
- Purchase of real estate
- Construction
- Purchase of equipment
- Refinancing
Glacier Bancorp SBA Loan Amount and Term
- Loan Amount: Up to 50,000 dollars
- Loan term: Seven years or greater
Business Loans
Glacier Bancorp, Inc. offers business loans in equipment loans, lines of credit, bank overdraft lines of credit, and commercial real estate loans. These business loans can be used for:
- Expansion
- Increasing Inventory
- Hire Employees
- Pay Debt
- Purchase Equipment
Glacier Bancorp, Inc. also partners with several government agencies such as local economic development organizations, USDA, and SBA.
Real Estate Loans
Glacier Bancorp offers real estate loans that can aid you in purchasing a new facility for your business. The bank also offers expert help, as it has one of the most experienced lenders in the market.
Glacier Bancorp, Inc. Corporation Interests, Fees, and Loan Options
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)
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)
Business Loans
- Interest Rate: Not Known
- Fees: Not Known
Real Estate Loans
- Interest Rate: Not Known
- Fees: Not Known
What Lending Criteria does Glacier Bancorp, 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 toa 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.
Why Does Your Credit Score Mean?
The credit score of a business is an overview of how well they've managed their credit. A three-digit score, also referred to as a FICO score, should typically fall in the 350 to 800 range. However, credit agencies have different scores, so the score your business gets might differ.
Credit Score Standard
- 760+ - EXCELLENT: This means that your company is capable of receiving lower interest rates; however, the lender will also take into account the value of the collateral and the debt-to-income ratio
- 621-629 – VERY GOOD: Your business is considered eligible for low-interest rates; again, it also depends on the debt-to-income ratio and value of the collateral.
- 621-629 – FAIR: This score means that your business might not be eligible to obtain the line of credit and will be charged high interest rates.
- 620 & Below – POOR: A business with this score will find it hard to obtain unsecured credit.
- NO CREDIT SCORE: You don’t have enough credit to have a credit score, or your credit has been largely inactive
Capacity
The capacity of the business is taken into account because it shows to the lender that you are capable of paying your dues and expenses on a new credit account. In addition, lenders will generally review your monthly income and financial obligations.
The standard for Debt-to-Income Ratio
- LESS THAN 35% - GOOD: Debt is manageable and relative to your income
- 36% to 49% - NEEDS IMPROVEMENT: Even though the business is paying the managerial debt, it still needs to lower the debt-to-income ratio.
- MORE THAN 50%: The business has extremely limited funds and might not pay back the loan.
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.
Purpose of the Loan
This is an obvious requirement, and a typical small business loan will be a statement that will describe your plans for using the loan. In the statement, the lender will ask you to be specific, and although lenders allow various loan purposes, the loan amount should match its purpose.
Amount of the Loan
This is also related to the purpose of the loan, and you will need to be specific about the amount of loan you need. Generally, banks have access to large amounts of capital and can easily issue six and seven figures loans. So, if a small loan is needed, banks might not be willing to provide it.
For small loans below the figure of 250,000 dollars, you might want to try out other alternatives and even check out SBA-backed loans.
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.
Bank Statements
Lenders will be interested in taking a look at the bank statements of a firm and assess if the firm is capable of paying back the loan or not. Bank statements provide a vivid insight for lenders and allow them to analyze the firm's cash management.
At a minimum, lenders will ask for bank statements of the last four to five months to have the proof they need. However, if you are applying for an SBA-backed or conventional bank loan, more bank statements than usual will be needed.
Personal and Business Tax Returns
Like the personal and business credit score, lenders will be interested in evaluating your business and personal tax returns and will ask for all the information. The lenders will judge your ability to pay the loan back and then decide whether to lend the loan or not.
Generally, lenders will ask for personal tax returns of the past two years. These documents will be important if you have a pass-through entity (partnership, sole proprietorship, or S-corp) where you report the profit and loss of your business on your tax return.
However, the tax returns of your business will also play an influential role if you have a corporation or an LLC that is taxed as a corporation. In this case, the lender will ask for the business tax returns of the last two years to verify expenses, revenue, and profit.
Purpose of the Loan
This is an obvious requirement, and a typical small business loan will be a statement that will describe your plans for using the loan. In the statement, the lender will ask you to be specific, and although lenders allow various loan purposes, the loan amount should match its purpose.
Amount of the Loan
This is also related to the purpose of the loan, and you will need to be specific about the amount of loan you need. Generally, banks have access to large amounts of capital and can easily issue six and seven figures loans. So, if a small loan is needed, banks might not be willing to provide it.
For small loans below the figure of 250,000 dollars, you might want to try out other alternatives and even check out SBA-backed loans.
Business Licenses and Permits
A common loan requirement is business permits and licenses. Although these requirements may vary by locality or state, lenders will be interested in the business's proof of ownership and operating license.
Glacier Bancorp, 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 Glacier Bancorp, 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 Glacier Bancorp, Inc. Loan Options
Glacier Bancorp, Inc. is an important bank for small businesses as it comes at No.83 on the list of SBA lenders. Not only that, but the bank also offers different types of loans such as business loans and real estate loans. The business loan that Glacier Bancorp, Inc. offers includes a wide variety of loans such as:
- Equipment Loans
- Lines of Credit
- Overdraft Lines of Credit
- Equipment Loans
- Real Estate Loans
Glacier Bancorp, Inc is located in Montana and is headquartered in Kalispell. The bank also operates in other regions of Montana:
- Buttle
- Anaconda
- Ronan
- Pablo
- Bigfork
- Eureka
- Lakeside
- Whitefish
- Libby
- Columbia Falls
- Polson
However, before signing up for a loan, there are a few things to keep in mind, always make sure all your information is up to date and read all the loan requirements. Before making your decision, discuss with the bank.