U.S. Bancorp Small Business Loans

SBA Loans are long-term loans that the government partially guarantees. The Small Business Association is a federal agency and is helping small businesses grow. The SBA has partners nationwide that lend the loan to small businesses. Unlike other loans, the SBA loan works a little differently as its terms are favorable.

The U.S. Bancorp is a preferred partner and lender of SBA, and the bank has a quick and streamlined lending process. The paperwork for the loan is greatly reduced, especially for those businesses that have been active for two years or more. These SBA loans can be used to fund inventory, business needs, and working capital.

Below are the small business loans that U.S. Bancorp offers:

1. SBA 7(a) Business Loan

The government backs the SBA 7(a) business loan, and its main purpose is to expand the business or fund a takeover.

Benefits

Best Use of the Loan

2. SBA 7(a) Real Estate Loan

The government backs the SBA 7(a) Real estate loan, and its main purpose is to fund the purchase of commercial real estate. The loan can also be used to refinance commercial real estate construction.

Benefits

Best Use of the Loan

3. SBA 504 Real Estate Loan

The government backs the 504 Real estate loan, and its main purpose is to fund the purchase of commercial real estate. The loan can also be used to refinance commercial real estate construction.

Benefits

Best Use of the Loan

Types of Loans offered by U.S. Bancorp

1. General Purpose Loan

Features

Fees

2. Equipment Loan

Features

Fees

3. Vehicle Loan

Features

Fees

4. Cash Flow Manager Credit Line

Features

Fees

5. Business Line of Credit

6. Business Equity Line of Credit

7. Business Reserve Line

U.S. Bancorp Interests, Fees, and Loan Options

1. SBA 7(A) Business Loan

2. SBA 504 Real Estate Loan

3. General Purpose Loan

4. Equipment loan

5. Vehicle loan

6. Cash Flow Manager Credit Line

What Lending Criteria does U.S. Bancorp Have?

1. Time in Business

This is a crucial factor for lenders as if a business has been active for two years, it has had long-term success and can pay the loan. However, if your business is new, it is unlikely that the lender will offer the loan, as the risk factor is too high.

2. Credit Score (personal)

Credit scores are of two types: Personal and business, and they are the essential factor for lenders. Lenders will often ask for your complete credit history and other final information. The personal credit score will eventually decide whether you are eligible for the loan or not. A good personal credit score is usually 600.

3. Credit Score (business)

Similar to a personal credit score, the business credit score shows the ability of the business to pay debts and expenses. The credit score of a business also shows its creditworthiness. The business credit score is also influenced by the size of the business, the revenue it earns, and its industry. Unfortunately, most business owners are unaware that their business has a credit score.

4. Annual profit and revenue

The annual profit and revenue reports will be required by lenders before they offer a loan. The lenders usually review the most essential documents such as profit and loss statements and other bank statements from the past two years. The business should be profitable; otherwise, it will not be eligible for a loan.

5. Personal and Business tax returns

Just like the credit scores, lenders will ask for personal and business tax returns. The tax return will help lenders review the financial situation of the owner and the business.

6. Purpose of the Loan

A typical loan request is just a statement that contains details about how the business will use the loan. However, the business should be specific with the loan details, and the amount of money requested should match up with the purpose of the loan.

U.S. Bancorp Application

Before you apply for the loan, some important steps need to be taken. First, the business needs to prepare all the necessary documentation and ensure that it is updated.

However, a formal business loan or an SBA loan does not require all of the documentation discussed above. The rest of the loans will require every piece of paper you have to decide whether your business is eligible for a loan or not.

You may also want to gather all your electronic documents, as banks will ask for a lot of evidence to say if you can pay back the loan on time or not. You can apply for the loan online as well by logging onto the website of U.S. Bancorp.

Before applying for the loan, organize everything properly and if any documents are missing, contact the concerned authorities. The best thing to do would be to have a thorough discussion with the bank on the pros and cons of applying for a loan.

Summary of U.S. Bancorp Loan Options

In this article, we discussed ten different loans that the U.S. Bancorp offers. Those loans include SBA Loans, Real estate loans, and SBA loans. Below is a list of the loans:

We have also thoroughly discussed the details of each loan, its interest rates, and fees. For example, some loans offered by U.S. Bancorp have no fees, while others require a small number of annual fees of 175 dollars. We have also discussed the loan criteria and the process of application.

U.S. Bancorp is also registered with the SBA Paycheck Protection Program, but we did not discuss that in this article because the registration process for PPP ended on 4th May. Hence, the U.S. Bancorp is no longer taking PPP applications. So right now, the PPP loan is not being offered by the bank.

For more information regarding details of loans, learn more.