How to get back to business post-COVID.
Now that many cities, counties, and states across the country have reopened and over 59% of the population ages 12 and over have been fully vaccinated, people are eager to get back to work, school, and travel. This hopeful turn has given opportunities for small businesses to reopen or reimagine their operations. But to do so, businesses may need tailored financing solutions to adapt in a post-pandemic economy.
Types of business loans.1
Popular Bank offers a range of business loans and other financing options to help businesses like yours restart and thrive again.
Business Lines of Credit.
Strengthen cash flow when your business needs it most. Use our Business Line of Credit to make a seasonal purchase, finance inventory needs, or process payroll. Flexible lines can be paid down and used again as your business grows and changes and feature competitive variable interest rates.
Commercial Mortgages, Owner-Occupied or Investment.
Purchase or refinance a commercial property, or tap into equity from existing property to finance the growth of your business.
Business Term Loan.
Secure a specific loan for immediate needs, such as purchasing or repairing equipment, consolidating debt, or expanding your footprint. Popular Bank offers financing options at flexible terms, competitive variable interest rates and fixed rates. Business assets or real estate assets can be used as collateral to secure the loan.
Secures payment for services or merchandise through issuance of letters of credit.
SBA Guaranteed Loan.
Apply for an SBA Guaranteed Loan and discover a credit solution that gives you flexibility, security, and confidence as you grow your business.
Loans for franchises, wholesalers, manufacturers, distributors, restaurants, doctors, dentists and more
How to apply for a business loan.
Much like applying for a mortgage, applying for a business loan requires several documents. These include:
Personal and business information.
While forms vary by program and lending institution, they generally ask for similar information.
- What is the ownership structure of your business?
- What is the purpose of this loan request?
- What other business debt do you have, and who are your current creditors?
- Who are the members of your management team and what is their experience? (You may need to come prepared with resumes of your management team.)
When applying for a small business loan, it’s critical to have a well-thought-out business plan to accompany your loan application. Your business plan may include projected financial statements, such as profit and loss statements, cash flow, and a balance sheet.
Personal Credit / Personal Guarantor.
Because your personal credit report will be pulled as part of the application process, you should check your credit reports from all three major consumer credit rating agencies – Equifax, TransUnion, and Experian. You can access a free annual personal credit report from all three agencies at FreeCreditReport.com. Inaccuracies on your credit report can hurt your chances of getting approved and can be addressed with the credit bureaus.
Income tax returns and bank statements.
Be prepared to submit personal and business income tax returns for the previous three years with your application. Additionally, you may be required to provide bank statements to document your income.
Depending on the type of business loan you’re applying for, collateral requirements may vary. Loans involving higher risk factors for default require substantial collateral. It’s always a good idea to prepare a collateral document that describes the cost/value of personal or business property that will be used to secure a loan.
Depending on your business loan’s application requirements, you may also be asked to provide certain legal documents. These may include:
- Business licenses and registrations
- Articles of incorporation
- Copies of contracts you have with any third parties
- Franchise agreements
- Commercial leases
How long will it take to get your funds?
Generally, an SBA loan funding process can take up to two to three months. Connect with a Popular Bank Relationship Manager regarding the funding process for our Business Lines of Credit and Business Term Loans.
Where to find help?
Your local small business development center can provide you with free services to help you prepare P&L statements, business and marketing plans and more. Your Popular Bank Relationship Manager can also help walk you through the application process for a business loan.
Ideas to help you reopen.
Once you have received your funding, partner with the local Chamber of Commerce, Rotary Club, or other professional organizations to develop live events, promotions, and cross-brand partnerships. An easy way to let customers know you’re reopening is to update your social media accounts with a simple “We’re now Open!” or promote your reopening with special offers and discounts.
To learn more about applying for a business loan to help you reopen, connect with us today.
1 All loans are subject to credit review and approval. Rates, program terms, and conditions vary by state and are subject to change without notice.