Business Loans to Jump Start the New Year

Business loans are real and available and more businesses are qualified than are aware.

With a slowly recovering economy and skepticism on the part of potential loan recipients, a great many business owners are under the false impression that it is a bad time to take out commercial loans. The truth is completely counter to this widely felt, uninformed opinion. The fact is that there is money ready for business loans.

Historically, interest rates are at one of their lowest points. For business owners looking to purchase or renovate commercial property, they could receive interest rates as low as 4.5 percent or even lower depending on the terms and down payment. It all depends on your specific need and now is the time to talk with your bank. Locking in your business loans at a fixed rate can mean big savings over time as rates could begin to move upward in the next several years.

The federal government is encouraging lending. One way that happens is through the Small Business Administration (SBA). SBA loans are government backed loans that help mitigate the lending risk to banks while providing much needed long-term capital to grow small businesses — the life blood of
our economy.

Businesses apply for the SBA loans at their local bank and the bank handles all of the paperwork. If the bank happens to be a preferred SBA lender the SBA loan is underwritten at the bank. Applying locally means that you can sometimes have an answer the same day you apply, as opposed to waiting extended periods of time for paperwork and approvals. There are some restrictions to SBA lending, so it is a good practice to visit your local bank, have a conversation with them about your financial goals, and let them help you handle the rest.

Many banks are flush with cash designated for loans. M & F Bank is a local bank that is an SBA Preferred Lender. According to Jeff Lacey, President and Chief Banking Officer of Mississippi’s M & F Bank, “We have cash to loan.” Lacey goes on to note that the lending environment is very pro-business. “The thing that business owners need to do is apply,” states Lacey.

M & F Bank offers a 30 minute loan assessment with no strings attached. Lacey goes on to explain : “The 30 minute assessment is set up so that business owners can come in and get an idea of what they can apply for without filling out paperwork.” This novel approach is helping business owners find out more about commercial loans without feeling threatened by commitments, paperwork and hassling phone calls.

In addition, local banks that are truly community banks, like M & F Bank, are able to visit the businesses rather than having the businesses visit them. Darren Milner, Vice President of Marketing at M & F Bank, says that this further helps business owners who are doing all they can to keep up with their busy schedules. Having someone come to them makes fitting in an appointment possible. “We just try to make it easy!” declares Milner.

Positioning is the name of the game in a slow economy. When the country’s cash flow slows down, strategically aggressive companies that want to poise themselves for significant growth invest in marketing and pre-growth preparation so that as the economy picks back up, they surpass their competitors who have slashed budgets and slowed down their businesses.

Now that rates are low and there is cash to be had, the time is ripe for a commercial loan to cover cash flow for operations and growth. If you have been considering a business loan, now may be the time to apply, or at least take 30 minutes to explore your options.

In business since 1890, M & F Bank is headquartered in Kosciusko, Mississippi, and is known for being a community bank. They are an equal housing lender and a member of the FDIC.