Loans & Funding Programs For Small Business Owners

Traditional Term Loans

One of the best options for small business owners in need of funding is the Traditional Term Loan.

Term Loans are a set amount of money, to be paid over a specific time period in set installments. The main advantage to the Traditional Term Loan is its consistency. For those businesses looking to borrow a large sum of money, and rather quickly, will find the Traditional Term Loan to be the best option for their business.

Small Business Credit Cards

Most consumers will be familiar with the inner workings of a credit card. When used responsibly, small business credit cards can give owners cash on an as needed basis, while allowing them to pay off the debt in monthly payments. The advantage of a credit card is that there is a constant revolving line of credit that can be utilized by the business whenever necessary. As long as the minimum monthly payments are made, no penalties or fees will accrue on this card.

Merchant Cash Advance (MCA)

Unlike the Small Business Credit Card, Merchant Cash Advances are a less well-known option for business owners. Merchant Cash Advances, or MCAs, are large sums of capital advanced to borrowers from lenders. This option is one of the best for borrowers with average to below-average credit, as credit score plays a very little part in the application process. In return for the loan, the lender will receive a percentage of all credit card sales through the borrower’s business. MCAs are delivered to borrowers fast, and should be paid back to the lender as quickly as possible. All in all, they are a great option for businesses looking for a lump sum of money that can be paid just as quickly as it is borrowed.

Business Lines Of Credit

Business Lines of Credit are another very popular way to gain funding for a small business. Although similar to Small Business Credit Cards, Business Lines of Credit can be taken out for large sums of money and are paid out in monthly installments similar to a Traditional Term Loan. The disadvantage here is that there is no set percentage of interest for Business Lines of Credit. Depending on your credit score health, these rates can fluctuate at an alarming rate. For larger amount of money borrowed, this can be a big problem for borrowers. However, if the borrower has a relatively good credit standing and able to make consistent payments on the line of credit, this can be a very beneficial option to business owners.

Small Business Administration Loans (SBAs)

Small Business Administration Loans, or SBAs, are funds made available to businesses through participating lenders. Typically sourced through banks, these loans have some of the lowest interest rates and most flexible repayment terms. SBAs can have some major drawbacks.

In most cases, it can take months for a Small Business Administration Loan to go through, if at all. Credit history, both for the business and personally, plays a major role in the application process. Those with less than ideal standings will likely not be eligible for Small Business Administration Loans.

Small Business Grants

Small Business Grants are some of the most highly sought out and competitive forms of small business funding. Essentially this option is free money, so competition is extreme. Many times federal, local, or non-profit agencies will offer funding to small businesses that fit certain criteria or follow specific guidelines. These businesses are eligible to qualify for funding at no cost to the business owner. The drawback here is that these grants are few and far between. They also often have very specific terms to the grant, and are only awarded to businesses benefitting specific groups of people or movements. However, this is still a viable option for many small business owners if the criteria are met.

Venture Capital

Venture Capital is an extremely popular form of funding for small business owners. When a company offers a percentage of ownership or share of a company, in exchange for funding, this is considered Venture Capital. Although a great option for thriving business owners, it can be difficult to find investors if your business is small or indistinct.

Angel Investments

Angel Investments are similar to Venture Capital, in that investors seeking out promising new or small businesses will offer a large sum of money, or “seed money”, to help the business take off. Although this may seem like the most ideal option for business owners, Angle Investors typically seek out businesses that can potentially offer returns on their investment, once the business is successful.

Bank of America

The bank noted that employees are trained to help decide what the right support for an individual customer looks like. A spokesperson for the bank also notes that, “As part of our regular practice, we offer assistance to qualifying consumer and small business clients facing hardships, including forbearance with certain fees.” Bank of America’s CEO has agreed to donate $100 million to support communities impacted by the outbreak.

Account holders are welcome to contact the bank if they need financial assistance. Through the bank’s Financial Center and ATM locator, you can find out whether the nearest Bank of America facility is open. The bank is also adjusting the hours at financial centers. All financial centers will be open at set times during the week and during normal hours on Saturdays. Its page noting the steps they’re taking in light of the spread of the virus also reminds customers that online banking and the Bank of America mobile app are also options.

BBVA

Customers of the regional bank based in Birmingham, Alabama should contact a representative to find out whether they qualify for any assistance the bank is providing.

CDs opened before March 1 can be withdrawn without penalty upon request. A number is listed (1-844-222-3862) for customers who might benefit from a line of credit, credit card or loan payment extension or deferral. Upon request, BBVA is also waiving and refunding ATM fees charged by out-of-network banks and ATMs. The existing offers only apply through April 17, but this end date may be extended if needed.

BBVA advises that customers use this tool to check the status of their local branch or ATM. Branches are being kept clean and supplied with latex gloves for the banking staff and hand sanitizing stations for customers.

Capital One

The McLean, Virginia-based bank has a page that’s dedicated to addressing questions and concerns related to the coronavirus. It’s asking customers to reach out if they’re going through a difficult financial situation. The customer support section of their website lists various phone numbers account holders can use depending on the product or account they have.

Effective Monday, March 16, Capital One Cafes nationwide are temporarily closing, the bank’s website says, “due to growing public health concern and in an effort to be proactive.” Branches in certain areas are also temporarily closing.

If you need to access a branch, check online first using the Locations Finder tool to find out if there’s one open near you. In the meantime, the bank recommends using its mobile app and other digital tools. Capital One ATMs, including most of the machines in the cafes and branches that are momentarily unavailable, are still accessible 24/7.

The bank, which formed out of a recent merger between SunTrust and BB&T banks, says on its website that it’s taking extra precautions to ensure the safety of its customers. Anyone who needs in-person branch access should go online to book an appointment. Some branches are closed and others are mainly operating through drive-thru lanes. Information about branch hours at BB&T and SunTrust branches is also online.

Other steps taken by the bank include waiving ATM surcharge fees temporarily for consumers and business owners and offering payment relief assistance for customers with credit cards, business loans and consumer loans. In addition, SunTrust and BB&T consumer credit card holders can get 5 percent cash back through Apr. 15 when they purchase certain items at pharmacies and grocery stores. There are also phone numbers listed on the Truist website that retail and business clients can call.

On Mar. 17, the Truist Financial Corp. pledged that it intends to donate $25 million through its Truist Cares initiative to provide aid and supplies to clients, employees and communities across the U.S. impacted by the coronavirus. Through the Truist Charitable Fund, a $1 million donation is immediately going to the CDC Foundation and Johns Hopkins Medicine. Through the Truist Foundation, a $3 million donation will be given to United Way organizations that support local communities.

U.S. Bank

Customers of U.S. Bank will also find a message from the CEO on the bank’s website. It outlines what the bank has done to protect its clients and retail bank customers, like providing extra hand sanitizer, wipes and spray in branches.

On March 13, U.S. Bank temporarily lowered costs for borrowers interested in personal loans and the bank’s Simple Loan product, which has been touted as a payday loan alternative for low-income Americans who need access to small-dollar credit options.

As of March 19, customers are being asked to use the bank’s drive-up windows as activity inside many branches has been reduced. Hours at all branches have also been reduced. Customers are reminded that they can check the availability of local branches and use the bank’s digital capabilities to bank at home.

Wells Fargo

Customers of Wells Fargo also have a hub page to access for all updates regarding the coronavirus. Wells Fargo lists a phone number (1-800-869-3557) account holders can call if they need financial assistance and want to discuss their options.

The bank is encouraging account holders to use Wells Fargo’s digital tools. Call centers are still open, but some branches have temporarily closed, and some hours have changed at certain locations. To find out more, there is a branch and ATM locator. In some branches, you’ll need to go online and make an appointment for activities that can only be done in person.

The Wells Fargo Foundation has agreed to donate up to $6.25 million to public health aid efforts being made abroad and here in the U.S. It will also soon donate up to $5 million to support local communities.