Keycorp, or Key Bank, as it is fondly called, is a financial institution with a preferred lender designated status that has operated in the banking industry for more than two decades and counting. Regarded as an SBA specialist, the bank has local branches in many stages, and it specializes in granting small loans to businesses in need of working capital. Currently, Key bank is one of the top lending institutions for small loans for businesses.
Types of Loans offered by Key Bank
The loan offered by Key Bank is specially curated for small businesses that do not meet the requirements for loans issued by other tier 1 lenders. If you are a business owner and your business does not qualify for business loans for one reason or the other, this is a lender you want to approach for a loan. There are different loan classes under the small business niche, and you will definitely find a loan that you can apply for. Here are the loans offered by Key Bank.
SBA 7(a) Business Loan
This is one of the most popular loans offered by Key Bank to small businesses. The SBA 7a loan program is an unsecured loan, and you can borrow up to $5 million as a loan to meet your business needs. This loan is very flexible and easy to apply for, and the application requirements are not as steep as what is demanded by other lending institutions. In addition, the loan tenure is long, and the collateral requirements are not as strict as other conventional loans.
Furthermore, there are no caps or strict spending requirements placed on the loan. Although it is issued to borrowers for business purposes, you are at liberty to decide what to do with it.
SBA 504 Loans
SBA 504 loan is specially created by Key Bank for small businesses that are still in their early phases of growth. If you only recently started your business and you require capital to expand operations, this is one loan you can apply for. The interest rate on this loan is fixed, so you are not affected by a rise or fall in interest rate as it remains static throughout the loan tenure.
Qualified businesses can receive a minimum of $100,000 to a maximum of $12,000,000 depending on their business qualifications. While you are free to pay for any amount you want, Key Bank has the exclusive right to decide how much you qualify for. The final funding decision will be determined by the scope of your business operations, business revenue, and other key metrics.
Working Capital CAPline
Are you having a cash flow problem, and do you require funds to keep your business operations running? If you do, Key Bank's working capital loan is for you. This loan is designed to help businesses meet their short-term commitments over a short period. For example, you can use the funds to cover the cost of inventory purchases and to pay up accumulated dents and other miscellaneous expenses. This is a revolving credit with a maximum credit line of $1 million. However, the full amount you qualify for will not be issued to you at once but in batches in line with the lender's policy and your creditworthiness.
This is a fast loan that can be approved on the same day you apply for it. So if you are looking for a loan at short notice, the SBA Express is the one to apply for. You can get up to $350,000 as a loan, and the good thing about it is the processing speed. The application process is also quite flexible.
SBA International Trade Loans
The SBA International Trade Loan is for businesses that trade in products and commodities across international boundaries. This full-featured loan can be used to fund multiple business ventures, and spending is at the borrower's discretion. For example, you can use it to finance the acquisition or development of fixed assets or boost working capital. The maximum amount available under the SBA International Trade Loan scheme is $5 million.
SBA Export Express
This product is for exporters of goods and services. The revolving line of credit under the SBA Export Express is $500,000. There is a minimum you can borrow under this loan option.
7(a) Small Loans
The 7a) small loan is slightly different from the 7(a) business loan. This one has a much smaller loan amount and a flexible application process. The tenure is also shorter, with a maximum amount of $350,000. This loan is available to small businesses like sole proprietorships and partnership businesses.
What Lending Criteria does the Bank Have?
To qualify for a Key Bank small business loan, there are certain criteria you must pass first. Even though the eligibility requirements are quite a few, only qualified business owners can access it. Here are the requirements.
Independence: The business must be independent and not affiliated to any other larger entity or managed by any larger entity. It must also be operated by the owner or owners without external influence.
Scale: Businesses that are already dominant or control a large market share in their niche cannot qualify for this loan. It is only meant for startups or emerging businesses.
For-Profit: The business must be a profit-making venture. Non-profit organizations do not qualify for it.
Employment & Sales Standards: The business must meet the employment and sales standards stipulated by law for small businesses.
Size: Only small and micro-scale businesses qualify for any of Key Bank's SBA loans.
Special Eligibility considerations: Besides the above, there are other key eligibility requirements the applicant must meet before qualifying for any of the loan options.
- Must not have earned a meet income of more than $5 million over the past 24 months
- The net worth of the business must not exceed $15 million
- The business must show historical records to prove that it can repay its debt
- The net worth must be in line with the average worth of other competitors
- Evidence of a reasonable collateral
- The owners and managers must be men and women of good character
These are the criteria that the business must meet before qualifying for any of the loan options on offer. Do note that Key Bank possesses the exclusive right to accept or reject a loan application even if an applicant meets the above requirements.
Keycorp Interest Rates, Fees, and Loan Options
Currently, the loan rates and application fees for any of Key Bank's loans are not published. So, if you want to apply for any of their small business loans, you will need to contact a bank official to register your interest. However, we know that the rates at which loans are issued to different borrowers are not the same. The interest rate your loan will attract will depend on
Your credit history: If you are a sole proprietor, your credit score will be used to determine how much interest you pay on the loan. Your score will also determine how much you are eligible for.
Loan amount: The loan amount will also determine the amount you pay as interest. A higher amount may attract a lower or higher rate of interest depending on multiple factors.
Rate type: The loan may be issued at a fixed or variable interest rate. If it is fixed, the amount will remain constant over the loan tenure. However, if it is variable, it will increase and decrease in line with the interest rate in the industry. However, there are loans with hybrid rates. For more information, do well to contact an agent of the bank.
Note: For the current interest rate, talk to a representative of Key Bank to know more
Keycorp loan Application
To apply for a Key Bank Loan, here is a list of documents you are to provide.
- Financial statement of the business for the past 3 years
- Business and Personal Tax returns
- Current financial statement of account
- A comprehensive report of unpaid invoices
- Documents showing the Articles of incorporation and other Bye-Laws
- A valuation of the collateral submitted with documentary evidence
- The financial statements of managers and key decision-makers
These documents are to be submitted along with the loan application form. For more information, kindly visit the official website of Key Bank to know more.
Summary of Key Bank Options
KeyBank Bank small business loans are for borrowers who cannot meet the lending requirement of other conventional lenders for one reason or another. The requirements for borrowers are quite flexible and the documents requested are easy to provide. Furthermore, there are maximum amounts you can borrow under each loan option but the banker reserves exclusive right to determine such an amount. To apply for any of Key Bank's small business loans, contact any of their representatives.