Old National Bank Small Business Loans

To start a new company or expand an existing one, all your aspiring dreams can become a delightful reality if the capital is taken care of. Even with the greatest intentions, having the liquidity to make your goals a reality is a major barrier for most enterprises.

So, what do you do when the ideal company location becomes available, a new piece of machinery becomes available at a discount price, or do you want to expand your workforce but lack the financial resources to do so?

A small business loan is essential to achieving your company's expansion ambitions.

A business loan can help you start or develop your business, but understanding the loan process and stricter lending rules can be daunting.

Understanding eligibility, shopping for lenders, and learning how to apply for a small-business loan are all steps that can help you receive the money your company needs.

Many small business owners rely on borrowed funds to establish, run, and develop their companies, yet they often fear they don't have good enough credit to qualify for a loan.

There are more options available today than ever before, depending on the type of the company, requirement, the firm's credit profile, revenue, time in operation, whether or not the business has appropriate collateral, and other considerations.

And each small business lender assigns a different weight to each factor.

How Can You Use Your Small Business Loan?

Applicants approved for a small business loan might use the funds to pay for ongoing expenses like labor equipment or inventory purchases.

Small business loans are also commonly used to regulate or smooth cash flow when expenses exceed income.

It could assist you to stay up with your spending and acquire equipment while you wait for your invoices to get paid if you're a small business owner who wants to buy some equipment but has to wait to be paid by a few key clients, for example.

An Overview of Old National Bank's Loans

Originally known as Evansville National Bank and Old State National Bank, it was established in 1834. In 1922, the bank was renamed Old National Bank.

Evansville had 11 banks when the stock market crashed in 1929; by 1935, seven of those institutions had been forced to close their doors. Old National was one of the four that continued to run.

Old National Bank has extensive experience with the SBA 7(a), SBA Express, and SBA 504 programs and will assist you in understanding the variations between them.

Old National Bank recognizes the importance of making well-informed judgments that will suit your requirements. The SBA has designated Old National Bank as a Preferred Lender, and we can work with you to identify solutions beyond typical loan possibilities.

You'll be able to take advantage of new business prospects if you have a community lending partner on your side.

Old National Bancorp is the parent business of Old National Bank, an American regional bank with almost 200 retail outlets centered in Evansville, Indiana.

Old National Bancorp is the largest financial services bank holding company in Indiana, with $23.0 billion in assets and 162 banking locations. It is also one of the top 100 banking firms in the United States.

In 1995, the financial publication Financial World ranked ONB top in profit momentum. In 2008, Bank Director magazine named the bank as the country's 28th best-performing bank.

Old National Bank Offers a Variety of Loans

The SBA offers a variety of financing options. The following are the most popular:

Loan Program 7(a)

It is the most prevalent type of loan for both new and established businesses. Equipment purchases, new furniture, remodeling charges, debt refinancing, and working capital are just a few goals for which companies can use the funds. The length of the loans ranges from 10 to 25 years.

Program for Microloans

Existing businesses and startups can apply for small loans of up to $50,000. The loans are provided by a network of charities with experience lending and offering technical assistance.

Use the money for everything from day-to-day operations to machinery, supplies, and furniture. You can't use them to pay off debt or buy real estate, however.

504 Loan Program of the Certified Development Company (CDC)

These are big loans used to fund large expenditures such as buildings, property, or expensive machinery. They are only allowed to spend a total of $5 million. You can't utilize them for inventory or working capital.

The SBA normally covers 40% of the expenditures of a large project, with the lender covering 50% and you, the borrower, covering 10%. The company's value must be less than $15 million.

Loans for Natural Disasters

You can apply for this low-interest loan to help you rebuild if a government-declared disaster has impacted you.

SBA 7(a) Loan Program

These loans necessitate a lot of paperwork, including statements for the following:

The lender will inquire about your business and ask a series of questions to determine whether you are a good risk. These could include the following:

The SBA isn't a lender of the last alternative if you're on the verge of bankruptcy, but it can provide a helping hand if you need money for expansion or to get through a slump. That is a great option to receive a low-interest loan with manageable monthly payments if you fulfill the minimum requirements.

Old National Bank’s Interest Rates, Fees, and Loan Options

Repayment term over seven years:

Repayment term for under seven years:

SBA 7(a) Loan Fees

Fees charged by the SBA and your lender are not included in the above rates. These fees might raise your loan's overall yearly cost or annual percentage rate (APR).

However, remember that SBA loans contain a guarantee fee calculated based on the loan terms and amount. The lender first pays the guaranteed cost, but it is frequently passed on to the borrower—that is, you—at closing.

Fees range from 2% of the insured amount for less than $150,000 to 3.75 percent for more than $1 million loans. Lower guarantee fees will apply to SBA loans with less than 12 months (which is extremely rare for SBA loans).

Other fees, including application fees, credit check fees, appraisal fees, packing fees, and closing fees, may also be charged by the lender. When calculating the entire cost of your SBA 7(a) loan, make sure to factor in these factors, as well as SBA loan conditions and amounts.

SBA 7(a) Loan Terms

Although the SBA and your lender will determine the duration of your loan repayment term based on your ability to repay, the loan's purpose, and the useful life of the assets you're financing, there are some time limits for SBA loans. 7(a) terms of the loan:

Real estate has been around for 25 years.

Equipment has a ten-year warranty.

Working capital takes seven years to accumulate.

Another advantage of SBA loans, as you can see, is the long repayment terms associated with these products. You'll repay your SBA loan with monthly principal and interest payments, just like a typical term loan, over the loan's term.

Furthermore, if your SBA 7(a) loan term is 15 years or longer and you prepay during the first three years of the term, you will be charged a prepayment penalty; otherwise, there will be no penalty for paying your loan back early.

SBA 7(a) Loan Uses

SBA 7(a) loans have no minimum amount and can go up to $5 million. In the 2019 fiscal year, the average SBA 7(a) loan amount was $446,487.

As previously stated, the versatility of an SBA 7(a) loan is its finest feature. These loans can be used for any of the following purposes:

Old National Bank's Application

Use the checklist below to ensure that all required forms are filled out completely and that any additional information is delivered.

You may need to provide additional information relevant to your transaction, such as:

Are You Personally Liable for an SBA Loan?

If you control 20% or more of the company, you must give an unlimited personal guarantee when applying for an SBA loan. It means that if your firm fails and you don't repay the loan, you're still responsible for the entire loan amount. Also, keep in mind that if a borrower defaults, the lender can recover 50 to 85 % of the outstanding loan total from the SBA.

Summary of Old National Bank's Loan Options

The Small Business Administration's 7(a) loan program has some of the finest rates and terms for small business loans.

We recommend pursuing it if you require cash for long-term development or business expansion and possess the requirements and time required to obtain an SBA 7(a) loan.

But, in the end, you are the most informed about your firm. With our information on small-business loans from Old National Bank, you can proceed with the SBA loan that suits your needs—and utilize that extra cash to expand your company.

Of course, not all firms will be eligible for SBA funding, so start with our loans guide if you want or need to look into other options.