HSBC USA Small Business Loans

HSBC Bank USA is a subsidiary of the UK-based HSBC bank and is headquartered in New York City. The bank also has a nominal head office in Mclean, Virginia. HSBC USA provides a variety of business loans designed to cater to the business's different needs.

HSBC USA provides SBA-backed loans and credit lines designed for small businesses to fulfil their needs. Below we have discussed in detail what these loans are and their features.

1. Paycheck Protection Program

Earlier this year, on 8 January, the SBA and the department of treasury announced that the PPP loan program would re-open from 11 January for new borrowers. However, the SBA also promised the following changes:

HSBC is a dedicated partner of the PPP loan program and accepted PPP loan applications till 24 May this year. The bank is also working with customers who have loan forgiveness applications.

First Round Success for HSBC USA:

2. Small Business Administration (SBA) Loan

The purpose of SBA loans is simple, and it is to get your small business up and running. These loans are designed to help you build a business and support its growth.

3. Term Loans

Term loans are designed to aid the growth of the business. HSBC USA provides the loan to finance technology, equipment and other business objectives.

4. Lines of Credit

HSBC USA Lines of credit is designed to cater for the short-term requirements of your business. Repayment rates of lines of credit are also flexible.

Types of Loans offered by HSBC USA

1. Paycheck Protection Program

Earlier this year, on 8 January, the SBA and the department of treasury announced that the PPP loan program would re-open from 11 January for new borrowers. However, the SBA also promised the following changes:

HSBC is a dedicated partner of the PPP loan program and accepted PPP loan applications till 24 May this year. The bank is also working with customers who have loan forgiveness applications.

2. Small Business Administration (SBA) Loan

The purpose of SBA loans is simple; it is to get your small business up and to run. These loans are designed to help you build a business and support its growth.

3. Term Loans

Term loans are designed to aid the growth of the business. HSBC USA provides the loan to finance technology, equipment and other business objectives.

4. Lines of Credit

HSBC USA Lines of credit is designed to cater for the short-term requirements of your business. Repayment rates of lines of credit are also flexible.

5. Commercial Mortgages

Commercial loans can be accessed to buy new properties, refinancing or upgrade existing buildings or workplaces.

6. Revolving Loans

Revolving loans give the working capital the boost it requires, as they enable it to cover short-term or daily expenditure. In addition, cash redrawing and repayment can also be done in the facility.

HSBC USA Interests, Fees, and Loan Options

1. Paycheck Protection Program

2. Small Business Administration (SBA) Loan

3. Term Loans

4. Lines of Credit

5. Commercial Mortgages

6. Revolving Loans

What Lending Criteria does HSBS USA 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)

HSBC USA 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.

Additional Requirements for HSBC USA

Terms of Loans and Lines of Credit subject to the approval of credit, client’s creditworthiness and compliance with terms and conditions.

Summary of HSBC USA Loan Options

HSBC USA is committed to helping businesses, specifically small businesses nationwide. HSBC USA offers the following loans:

The bank has partnered with SBA to help small businesses and has had tremendous success. As discussed earlier, HSBC USA has supported the payroll of more than 100,000 employees through the PPP loan program. In addition, the bank also gave away 1.35 billion dollars worth of PPP loans.

For more information regarding loans, learn more.