Truist Bank Small Business Loans

Banks have always been reluctant to offer loans to small businesses, as the risks are too high. In addition, most small businesses don't have the appropriate finances, credit scores, and collateral to pay off a loan. However, recently the trend is changing, and banks are lending a helping hand to small businesses.

The SBA has also launched several small business initiatives along with banks and is offering PPP and 504 Loans. Truist bank also has several loans to help small businesses, and they have been discussed below.

11.SBA 504 Loan

Purpose

This loan is designed to fulfill the long-term needs of a business, such as purchasing commercial real estate, starting the business, or renovating facilities. This loan requires less equity than other loans.

Eligibility

Businesses should be worth at least 15 million dollars and should have a net income of 5 million dollars.

Maximum Loan Amount

Up to 10 million dollars or more

Maximum Loan Term

Loan term of 25 years

Maximum Guarantee of SBA

A portion of the loan offered by the bank is determined by SunTrust pricing; SBA 2nd lien portion is determined during debenture sales.

Owner Equity and Liquidity

Minimum requirement of 10 %

Collateral

The SBA does not require collateral; however, the assets used as finances are considered collateral. Therefore, if the business assets are insufficient to finance the loan, personal assets may be needed.

Interest Rates

Competitive and Fixed

12.SBA 7(a) Loan

Purpose

This loan is designed to grow business finances to fulfill all their business needs, such as working capital or purchasing real estate. The lines of credit are not permitted.

Eligibility

Businesses should be worth at least 15 million dollars and should have a net income of 5 million dollars.

Maximum Loan Amount

5 million dollars

Loan Term

For working capital: five to seven years, ten years for other fixed assets and other equipment, and 25 years for real estate.

Maximum Guarantee of SBA

75 to 85 %

Fees for SBA guarantee

A fee is charged for guaranteeing the loan by SBA

Collateral

The SBA does not require collateral; however, the assets used as finances are considered collateral. Therefore, if the business assets are insufficient to finance the loan, personal assets may be needed.

Interest Rates

Plus (no balloons)

13.SBA Express Loan or Line of Credit

Purpose

This loan offers lower borrowing maximums, which means there is little paperwork required, and the response to the application is quick. The down payments of this loan are also lower compared to other loans.

Eligibility

Businesses should be worth at least 15 million dollars and should have a net income of 5 million dollars.

Maximum Loan Amount

250,000 dollars

Loan Term

Loan term of ten years.

Maximum Guarantee of SBA

50 % guarantee

Fees for SBA guarantee

No fees charged

Collateral

The SBA does not require collateral; however, the assets used as finances are considered collateral. Therefore, if the business assets are insufficient to finance the loan, personal assets may be needed.

Interest Rates

Competitive variable and fixed

14.SBA Working Capital Loan – Export Express

Purpose

Through its exporting working capital program, SBA offers financing that covers the export needs of a business. This Export Express working capital loan is designed to fulfill all the export financing, market development, and business expansions. In addition, this loan can also help financial trade shows, equipment, and real estate.

Eligibility

This loan is a 'for-profit’ business, the sole proprietorships should meet the size and industry guidelines set by SBA, and the business should be operational for at least a year.

Maximum Loan Amount

500,000 dollars

Maximum Guarantee of SBA

90 % guarantee for 350,000 dollars, 75 % guarantee for 500,000 dollars

Fees for SBA guarantee

0.25 % fee for maturities that are less than a year, 2 % fee for < 150,000 dollars and 3 % fee on amount of > 500,000

15.SBA Working Capital Loan – Export Working Capital

Purpose

The purpose of the SBA export working capital loan is to finance the pre and post export needs. In addition, this loan will assist small businesses who need working capital on a short-term basis to fund their export costs.

Eligibility

This loan is for-profit business, the sole proprietorships should meet the size and industry guidelines set by SBA, and the business should be operational for at least a year.

Maximum Loan Amount

5 million dollars

Maximum Guarantee of SBA

90 % guarantee on 5 million dollars

Fees for SBA guarantee

0.25 % for SBA on guarantees

Types of Loans offered by Truist Bank

1. SBA 504 Loan

This loan is designed to fulfill the long-term needs of a business, such as purchasing commercial real estate, starting the business, or renovating facilities. This loan requires less equity than other loans.

2. SBA 7(a) Loan

This loan is designed to grow business finances to fulfill all their business needs, such as working capital or purchasing real estate. The lines of credit are not permitted.

3. SBA Express Loan or Line of Credit

This loan offers lower borrowing maximums, which means there is little paperwork required, and the response to the application is quick. The down payments of this loan is also lower compared to other loans.

4. SBA Working Capital Loan – Export Express

Through its exporting working capital program, SBA offers financing that covers the export needs of a business. This Export Express working capital loan is designed to fulfill all the export financing, market development, and business expansions. In addition, this loan can also help financial trade shows, equipment, and real estate.

5. SBA Working Capital Loan – Export Working Capital

The purpose of the SBA export working capital loan is to finance the pre and post export needs. In addition, this loan will assist small businesses who need working capital on a short-term basis to fund their export costs.

6. Business Term Loans

These loans are designed to fulfill all types of business needs, such as expansions and acquiring other assets. In addition, business term loans are also capable of financing growth. The term of these loans is up to 20 years.

7. Equipment Leasing Loans

This loan can finance all your equipment needs, as there comes a time for every business when more equipment is needed. This loan offers finances of 250,000 to 50 million dollars.

Best for:

Truist Bank Interests, Fees, and Loan Options

We have identified seven loans offered by Truist Bank, and below, we have discussed their fees and interest rates.

1. SBA 504 Loan

2. SBA 7(a) Loan

3. SBA Express Loan Line of Credit

4. SBA Working Capital Loan – Export Express

5. SBA Working Capital Loan – Export Working Capital

6. Business Term Loans

7. Equipment Leasing Loans

What Lending Criteria does Trust Bank Have?

The General criteria for lending are followed by all the loans mentioned above:

However, for SBA loans, an additional criterion needs to follow:

Truist Bank Application

The following is the general process of loan application that is followed:

For more information, please log onto the website of Truist Bank. Click here.

Summary of Truist Bank Loan Options

We discussed features of all the business-related loans that are offered by Truist bank:

1. SBA 504 Loan

2. SBA 7(a) Loan

3. SBA Express Loan or Line of Credit

4. SBA Working Capital Loan – Export Express

5. SBA Working Capital Loan – Export Working Capital

6. Business Term Loans

7. Equipment Leasing Loans

Truist bank offers all the necessary small business loans that will help propel your business to new heights. However, before applying for the loan, do study the general criteria and the application process.

For more information on loans, learn more.