Valley National Bancorp, officially known as Valley Bank, is a bank holding firm and has its headquarters in Wayne, New Jersey. The bank has more than 42 billion dollars in assets and its main subsidiary is the Valley National Bank.
The Valley National Bank also offers several types of loans, including SBA 7(a) Loan. Below we have discussed the SBA loans offered by Valley National Banks and the recent modifications.
11.SBA (7A)
The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.
- Loan Amount: Not Specified
- Term: 25 years (10-year amortization)
- Down Payment: 100 % financing available
- Loans can be used to purchase equipment, supplies, material real estate, and other properties can also be purchased with the help of this loan.
- The loan can be used for construction, refinancing a debt acquiring a business, and business expansion.
SBA 7(a) Loan recent modifications
- The guaranteed percentage increased from 75 % to 90 %, giving more flexibility to lenders (banks)
- Guarantee fee waived, increase in savings for borrowers
- SBA will make three principal and interest payments after the loan is fully funded
- Valley National Bank will decrease the SBA 7 (a) loan fee by 500 dollars, going from 1500 to 1000 dollars
12.SBA 504 Loan
- Lower down payments
- Amount: 15 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
- Competitive rates
Types of Loans offered by Valley National Bank
1. SBA (7A)
The SBA (7a) loan program is the most common time of SBA loan, and only small businesses are eligible for this loan.
- Loan Amount: Not Specified
- Term: 25 years (10-year amortization)
- Down Payment: 100 % financing available
- Loans can be used to purchase equipment, supplies, material real estate, and other properties can also be purchased with the help of this loan.
- The loan can be used for construction, refinancing a debt, acquiring a business, and business expansion.
2. SBA 504 Loan
- Lower down payments
- Amount: 15 million dollars
- Purpose: Provides financing for long-term purposes at a fixed rate to fund business expansions. The loans also support economic development so that more jobs are created.
- Competitive rates
3. Equipment Financing
Valley National Bank also offers equipment financing for your business. Whether it is industrial equipment, medical equipment, dental equipment, or veterinary practice, Valley National Bank has got you covered by offering competitive financing options. Valley National Bank offers competitive financial options.
4. Commercial Real Estate Lending
Valley National Bank offers commercial real estate lending through its various offices in Florida, New York, and New Jersey. This loan is designed to help businesses develop new projects, refinance existing projects and make necessary purchases such as buying real estate.
- Loan is fixed-rate
- Term of seven years (30 years with atomization)
- Bridge loans
- Construction loans
- Single-multifamily residentials
- Permanent loans
- Offices, Retail and Industrial
5. Term Loans and Lines of Credit
Businesses are constantly trying to look for ways to grow, expand or buy equipment and inventory. The lines of credit offered by Valley national bank will help you achieve all your business needs and goals.
Valley National Bank Interests, Fees, and Loan Options
43.SBA (7A)
- Interest Rate: 4.25 % for < 25,000 dollars, 3.25 % for 25,0001 to 50,000 dollars, 2.25 % for > 50,0001
- Fees: 0.25 % (short-term loan) 3.5 % (1000,000 dollars)
44.SBA/CDC 504 Loan Program
- Interest Rate: 2.4 % (Ten-year term), 2.35 % (25-year term), 2.41 % (also for 25-year term)
- Fees: 0.25 % (Loan servicing) 0.5 % (SBA Guarantee)
45.Equipment Financing
- Interest Rates: Not Specified
- Fees: Not Specified
46.Commercial Real Estate
- Interest Rates: Not Specified
- Fees: Not Specified
47.Term Loans
- Interest Rates: Not Specified
- Fees: Not Specified
48.Lines of Credit
- Interest Rates: Interest Rate: 8.5-80 % (Medium-term loans), 7-30 % (Online term loans) 7-99 % (Merchant cash advances)
- Fees: None
What Lending Criteria does Valley National Bank Have?
Below is the basic lending criteria that all the banks follow:
- Credit Score
- Annual Revenue
- Business Plan
- Collateral
- Time in Business
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:
- Driver’s license
- Business license
- Tax returns (personal)
- Tax returns (business)
- Insurance plans of business
- Records for payroll
- Detail of owner
- Other financial obligations
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.
Valley National Bank 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.
- Personal and Business credit scores and history
- Account statements of the business
- IRS documents, tax returns of the business, and the owner as well.
- Other important financial documents such as unpaid invoices, credit card details, and accounts receivable.
- Legal contracts (leasing, franchising, incorporation)
For more information, check out the website of Valley national bank.
Requirements for SBA Loans
- SBA loan package application
- Business should be active for at least three years
- Submit tax returns
- A breakdown of the financial information about the business
- Detailed information regarding how the funds will be utilized
- Copy of sales, construction contracts, sales, and other transactions
- For startup business: a business plan
For more information on SBA loans, click here.
Summary of Valley National Bank Loan Options
Valley National Bank is a bank holding company worth 42 million dollars and is headquartered in Wayne, New Jersey. The bank also has offices in other states such as New York and Florida. The bank offers a wide variety of financing, commercial loans, and SBA loans. Below we have given a list of loans that are offered by Valley National Bank:
- SBA Loan 7(A)
- SBA/CDC 504 Loan Program
- Term Loan
- Lines of Credit
- Commercial Real Estate
- Equipment Financing
Valley National Bank has also thoroughly explained the recent changes made to SBA loans on its website. So before applying for SBA loans, please go through them.
As always, please make sure that all your financial documents and balance sheet are up to date as the bank will review all that. If you have any outstanding debts, make sure you pay them off before signing up for the loan. If any documents are missing, inform the bank or contact the concerned authority.