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How to get a small business loan

How to get a small business loan

If you’re looking to obtain financing for your small business, Two Rivers Bank & Trust is here to make the process as pain-free as possible.

What items do banks need when applying for a small business loan?
It depends on whether you are an existing business or a start-up business.

If you are a start-up business, we want you to provide us with the following:

  • Written business plan with financial projections and a summary of financing request.
  • Personal financial statement
  • Your personal tax returns for the last three years
  • Resume for each owner
  • Operating agreements, Articles of Incorporation/By-Laws
  • If applicable, any proposed lease agreements

Or, if you’re an existing business, we ask you to provide us with these items:

  • Loan request detailing purpose and amount of loan, collateral and repayment sources
  • Current personal financial statement
  • Your personal tax returns for the last three years
  • Your business tax returns for the last three years
  • At least one year of business projections
  • If applicable, any proposed lease agreements

“If it’s a new business, we require a business plan that includes current financial statements and three years of financial projections,” said Two Rivers Bank & Trust Commercial Loan Officer Ryan Nagrocki. “The biggest thing we like to see is your plan for success.”

How can a potential business owner make the process easier?
Speak with a lending officer and find out exactly what they will need from you. Then, when the time comes to meet, bring everything they ask.

“I tell people get the bank involved as early in the process as possible,” said Nagrocki. The earlier that you come talk to the bank, the earlier we’re going to be able to help guide you.”

Nagrocki also notes that having a previously-established relationship with a bank will help your small business loan process, but it’s not crucial to your success.

“Even if they don’t have that relationship with us, we still like to talk to those potential prospects that are out there. We just appreciate anybody out there that keeps Two Rivers in mind for any of their business needs or plans.”

How much money should you ask for?

Really, it depends on the purpose of the loan, such as, purchasing equipment, remodeling your current facility, working capital.  The loan repayment terms will generally relate to the purpose of the loan and the useful life of the collateral.  It is important that your business can generate sufficient cash flow to cover the monthly payment amount.  It is important for you to understand your business’ cash flow.  Remember that this is a loan and you’ll have to pay back with whatever payment plan you and the bank agree upon.

When it comes to borrowing from Two Rivers, they’re equipped to help you regardless of the amount.

It’s important to remember not to be discouraged

“It can be a daunting task, some people don’t know where to start. But don’t get discouraged.  We are ready to assist you.   We should be able to make it simple and easy for you to navigate through it. We try our hardest to not say, ‘No,’” said Nagrocki.

Two Rivers Bank and Trust works with its clients and customers to make the process as seamless as possible. If you want more information on how to get your small business loan, check us out online and learn about all of your options. Or, stop into your neighborhood Two Rivers Bank and Trust so we can help get your startup on its feet!