Commercial Lending for Small Businesses

Whether it’s for short-term working capital or a long-term strategy for growth, commercial lending can be a vital part of running a small business. A loan for a small business can help businesses so they don’t have to tie up all of their money in one area, and can afford things they need to grow.

A small business should be prepared to show banks evidence that their business is profitable, or will soon be making money. Have a current balance sheet, profit-and-loss statement, and a detailed budget for the next two years.

Be honest with your bank about the risks in your industry and explain how you plan to deal with them.

It can also help to be flexible with the amount of money and the loan terms you’re requesting. You may want to start with a small loan to show you can pay it off, then apply for a bigger loan.

SBA Loans

The U.S. Small Business Administration, or SBA, is a federal government agency that works with lenders to guarantee loans the banks wouldn’t otherwise make due to certain credit risk(s).  Under the SBA's 7(a) Program, the SBA can guarantee upt to 90 percent of the loan, which may enable the bank to make the loan. In general, the larger the loan, the lower percentage the SBA will guarantee.

Additionally, Rockland Trust offers 504 loans.  The 504 Program helps small business owners buy or renovate commercial real estate, buy equipment, and expand their business.  The SBA 504 Loan Program combines traditional first mortgage lender financing with subordinate, long-term, below market fixed-rate financing from an SBA Certified Development Company.  Additionally, under the SBA 504 Program, down payments can be as low as 10 percent.  This financing structure enables small businesses to receive interest rate and loan terms comparable to what larger firms receive.

Other Commercial Lending Options

Rockland Trust offers other financing options for commercial lending to small businesses:

Asset-Based Loans:

These are secured primarily by accounts receivable and inventory, and are working lines of credit to help keep a business moving. Asset-based loans , or ABL, are often available more than conventional commercial loans are.

Rockland Trust offers ABLs of $3 million to $30 million to manufacturers, distributors, wholesalers, retailers and service companies.

The loans can be used for working capital, refinancing, growth, mergers and acquisitions, debtor-in-possession, ESOP programs, recapitalizations, turnarounds, emergence financing, and import and export letters of credit.

Construction and Land Development Loans:

Rockland Trust offers these loans for a variety of construction and rehabilitation projects. Commercial real estate construction loans are available to build retail stores, office buildings, industrial or manufacturing plants, apartment complexes, or mixed-use projects.

Land acquisition and development loans are to purchase either residential or commercial land, as well as develop the infrastructure and single-family or commercial improvements that will go on it.

Commercial Mortgage Loans:

Traditional long-term financing may be the best solution for real estate acquisition, renovation and refinancing. Rockland Trust has more than 100 years of experience financing commercial real estate.

Rockland Trust can help with construction and acquisition financing, interim and bridge financing, mini-perm and permanent financing, and A&D and unit construction financing.

Dealer Services:

Rockland Trust services loans for auto, marine and recreational vehicle dealers to help them finance inventory. It also offers commercial mortgage loans, equipment financing and cash management for dealers.

Equipment Loans:

Rockland Trust offers competitive rates and flexible repayment terms to help businesses purchase new equipment.