Applying For A Loan
Can Raise A Lot of Questions

Small Business Administration is a government agency established to facilitate lending to small businesses by offering a government guarantee for its specific loan programs.

SBA offers term loans and lines of credit for all business purposes. Due to the flexibility of the SBA 7A program we utilize this product most.

There are several different measures used to classify a small business. Generally, an eligible business with less than 500 employees qualifies.

Non-profits are ineligible. However, we do offer other loan products for non-profits.

Most small businesses in the US are eligible. There are some disqualifying or ineligible industry types. (gambling, sex industry and drugs)

Depending on the loan amount, purpose and type. Terms can be up to 25 years.

You will need 3 years of historical financials on the business along with 2-year projections for existing business, 5-year projections for startup businesses, personal financial statement and personal tax returns as well as financials on any other related businesses

We provide regular bank commercial loans, SBA loans, USDA loans, FHA loans, equipment leasing, accounts receivable financing, and lines of credit for all types of business purposes.

We provide term loans and lines of credit for business expansion, start-up, refinance, equipment purchases, and operating capital.

First Liberty is a 30-year-old commercial mortgage banking company affiliated with more than 100 lenders nationwide. Our seasoned banking staff has on average more than 30 years of commercial banking experience. We pride ourselves on being knowledgeable and creative with financing options for your loan needs. We also can offer some of the best terms in the market.

Yes, not only will you have access to a personal customer service representative, you will be able to interact directly with the loan officer and the underwriter assigned to your loan.

Our mission is to provide our clients with a high touch level of customer care.

Yes, you will get real-time updates through our customer portal entry as well as direct access to your loan officer and assigned underwriter.

There are usually several rate options, fixed and variable. Rates are dependent on various factors related to the market, risk, and term.

EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortization. This calculation is used to show that a business has the ability to service the debt requirements of all debt including the new loan.

LTV (loan to value) is the loan amount divided by the value of the asset(s)or project pledged as collateral. LTC (loan to cost) is the loan amount divided by the cost of the project or asset. Banks use both of these to determine the amount of the loan. The percentage of the loan amount will vary depending on the collateral type and loan purpose.

You will need 3 years of historical financials on the business along with 2 years of projections for existing business, 5year projections for startup businesses, personal financial statement and personal tax returns as well as financials on any other related businesses.

Cash flow is king. Cash flow is the primary source of repayment for any loan. A borrower needs to demonstrate sufficient cash flow to service all debt requirements. Other criteria include character, reputation, experience, strength of the business, financial capacity, type and coverage of collateral, credit, potential for long-term success, related or affiliate business, and possible effects on repayment.

The minimum loan amount is a 100,000.00. Although some loan programs have amounts capped at 5 million (SBA) or 10 million (USDA) we have provided financing up to 50 million on some projects.

Repayment ability is the biggest factor in determining loan amount. EBITDA is a measure of repayment ability and needs to be 1.2 times or more than the total amount of the annual debt service.

Define your business's financial needs. Know how the loan proceeds will make your business more profitable. Gather your business and personal financial documents. Call First Liberty Building & Loan!

The loan should be able to be covered by historical cashflows. The borrower should have post-closing liquidity equal to 3 to 6 months of operating expense or 10% of the loan amount. These are general guidelines and may vary on a case-by-case basis.

Loans are generally secured by the asset being financed and/or the assets of the business. Loans can be unsecured in some cases with ample cash flow. Occasionally equities in personal assets may be required as well.

It depends on several different factors. Rule of thumb is 10 to 20 percent equity contribution.

Several factors can influence the time it takes to close a loan. Most loans can be done within 60 days of having provided all information requested. We have closed large loans in less than a week.

Good credit is always beneficial. In the case of poor credit, a letter of explanation will be needed.

If you are buying a business or starting a new business you do need a business plan. If you do not have one or know how to put one together, we can help direct you to the resources to put one together.

If you are buying a business or starting a new business you need 5 years of projections. The first 2 years need to be monthly with yearly totals. If you are buying a partner out or expanding your business you need 2 years projections.