Commercial Loans

Because Enterprise Bank is one of the few financial institutions that caters exclusively to the small business owner, it understands their special financial needs. Those needs are as individualized and unique as each business and each entrepreneur. That’s why Enterprise Bank offers a variety of commercial loans and, unlike many other financial institutions, will create a custom loan package that will help you reach your financial goals.

To find out more about how Enterprise Bank can create a loan package specific to your business and its needs, call (412) 487-6048. A Client Service Representative will help direct you to the Bank Relationship Manager that will fit your business’ industry and personality best.

Commercial Mortgage and Commercial Term Loans

Enterprise Bank makes many types of loans. One of these is the commercial mortgage term loan, which can be divided into non-owner occupied real estate loans and owner occupied projects.  Each of these commercial mortgage term loans has slightly different conditions.

With both kinds of mortgage term loans, the Bank will provide a maximum advance ratio of 75% to 80% of the appraised value or cost, whichever is less.  This percentage is determined based upon the strength of the project.  The borrower's equity contribution can be reduced or eliminated if the Bank takes a security interest in additional real estate or liquid collateral of the borrower.  Even if additional collateral is provided, the project still needs to support the debt service on a cash flow basis.

Where the loan is for non-owner occupied property, the minimum debt service coverage ratio is 1.2:1.0.  This ratio is computed by taking the monthly rental income, less expenses to be paid by owner, divided by the monthly debt service.

To find out more about a commercial mortgage term or commercial conventional loan with Enterprise Bank, call (412) 487-6048.  We will match you up with one of our experienced Relationship Managers, who will work with you closely on the banking and/or financing programs that will best fit you and your business.

 

Commercial Lines of Credit

Enterprise Bank offers commercial lines of credit (LOC) that are specific to the financial state and needs of your business.  The line of credit could be either a formula based, if supported by accounts receivable, or non-formula based, if supported by additional collateral.

To find out more about accessing a line of credit with Enterprise Bank specific to your business needs, call (412) 487-6048.  We will match you up with one of our experienced Relationship Managers, who will work with you closely on the banking and/or financing programs that will best fit you and your business.

SBA and Government Loans

The Small Business Administration (SBA) is a government agency whose mission is to “maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters” (www.sba.gov).  They are most well known for the financial assistance they provide through government guarantees of small business loans made through private financial institutions like Enterprise Bank.

SBA loan guarantees offer many advantages to both the Bank and the small business client.  They allow the financial institution to expand the types of businesses and industries that it can lend to, since SBA guarantee mitigates much of the risk associated with new or emerging industries or those types of businesses that traditionally pose higher than average loss or failure rates.  Also, they can be effective tools in dealing with traditionally under-collateralized or non-hard asset intensive businesses, like service or technology based companies, or start-up ventures that have not yet established a proven track record of financial performance.

For the small business client, having an SBA backed loan can allow the Bank to provide longer repayment periods, resulting in lower monthly payments and debt service requirements for owners.  In addition, SBA loans can sometimes help business owners access financing with smaller down payment and/or equity requirements than traditional bank financing. 

Two of the most common types of SBA loans are the 7(a) Loan Guarantee program and the SBA 504 Loan program.

The 7(a) Loan Guarantee program is the SBA’s flagship loan program.  It works very simply: a business applies to a lending institution for a loan.  If the lender feels that the business or the loan request would be outside of its conventional loan parameters because of issues like a collateral shortfall, but still feels that the company is a good credit risk, it can request the SBA to guarantee or insure a portion of the loan to the Bank.  If the business meets the eligibility and credit criteria of the 7(a) program, the lender can then receive a government guarantee from SBA for up to 90% of the loan’s value, depending on the size and type of loan requested.

The SBA 504 Loan program increases access to capital for small businesses and supports financial institutions in their lending activities to those businesses.  In this gap financing program, real estate and equipment projects are funded by a private sector financial institution providing 50% of the necessary project funding, the SBA providing 40% of the total funds through the sale of a fixed rate bond, and the remaining 10% being provided through an equity contribution from the borrower.  Because the  SBA portion of the 504 project is funded through a 100% government guaranteed debenture bond, the SBA is able to offer the small business customers ten or twenty year fixed interest rates below market for their portion of the project. In exchange for providing these below market fixed rates, and equity requirements that are usually much lower than traditional bank financing, the SBA requires the 504 borrower to create or retain jobs, or promote other SBA public policy goals like rural development, exporting, or business district revitalization.

If you feel that you might qualify for either the 7(a) or 504 loan programs, or are seeking financing which may require SBA backing, contact Enterprise Bank by email at info@enterprisebankpgh.com or by phone at (412) 487-6048 for a copy of the current local SBA Small Business Resource Guide.  This guide is produced by the SBA and contains a wealth of information regarding the SBA, its programs, and other organizations and programs in the area that can provide additional guidance when starting or expanding a small business.

Make sure your bank is a member of the SBA Preferred Lenders Program (PLP).  PLP lenders demonstrate long-term experience and success with the SBA’s lending programs.  This means that these financial institutions have substantial authority from the SBA in making loans under their programs, and for small business owners working with PLP participants often make the SBA loan process much faster and flexible than with less experienced banks or lenders.

Enterprise Bank consistently ranks among the top SBA PLP participants for the Western Pennsylvania region and is the most efficient SBA lender in the market based on the asset size of the Bank.  In addition, the Enterprise Bank staff includes 2 former SBA staff members with more than 2 decades of combined SBA lending experience.  They and the other relationship managers at the Bank can help your business navigate the loan process. They work regularly with the SBA to help clients obtain not only loans but also government contracts and other support services and programs that SBA provides.

Enterprise Bank offers the fullest range of SBA financing available by participating not only in the Preferred Lender Program, but also in SBA’s lesser known specialty programs like SBA Express, contract loans, seasonal and asset based lines of credit, and export working capital loans. Enterprise Bank has received many awards for its work with the SBA and for helping to establish and grow businesses with SBA backed loans.  These awards include:

  • SBA's Highest Dollar Volume Lender for Western Pennsylvania in 2008, 2009, 2010 and 2011
  • #1 SBA Lender to Women-owned Business for Western Pennsylvania in 2007
  • Most Active 7(a) Lender with Assets Under $1 Billion in Western Pennsylvania for 2007
  • Silver Leadership Circle Award 2005 & 2006
  • Asset Builders Award for Most Active 504 Lender in the Western Pennsylvania District 2004 to 2007
  • SBA Champion Award 2005 for Senior VP & Relationship Manager Development Officer David Miller
  • District Director's Award
  • U.S. Small Business Administration's (SBA) 2012 Western Pennsylvania Financial Services Champion of the Year for Senior VP & Relationship Manager Development Officer David Miller

To find out more about accessing an SBA loan with Enterprise Bank specific to your business needs, call (412) 487-6048.  We will match you up with one of our experienced Relationship Managers, who will work with you closely on the banking and/or financing programs that will best fit you and your business.

Small Business First

Small Business First loans are a unique combination of state financing and bank financing.  The state provides up to 50% of the funds, which cannot exceed $200,000. The Bank provides the remaining 50% of the loan.  The goal of a Small Business First loan is to provide the financing for the acquisition of land, building, equipment or working capital.

This kind of financing usually has a 60-day approval process, with funds available 30-45 days later.  It cannot be used for projects relating to refinancing and has job creation/retention requirements.

To find out more about accessing a Small Business First with Enterprise Bank specific to your business needs, call (412) 487-6048.  We will match you up with one of our experienced Relationship Managers, who will work with you closely on the banking and/or financing programs that will best fit you and your business.

 

Bank on Business

Bank on Business (BOB) is a government program set up to assist the growth and development of small businesses.  Enterprise Bank is an active participant in that program. This includes both start-up and expansion projects, typically in businesses that are in financially distressed situations.

Typically with this type of loan, 50% of the funds come from from bank funding, 40% are from BOB, and 10% are from equity.  These loans are unique because in the first year, nothing is repaid; in the second year, the principal and interest (at the rate of approximately 3%) are paid; and in the third year to maturity, repayment of the principal and interest of approximately 6% occur.  These loans typically last for 5 years and are for no more than $200,000.  Also, they cannot be used for lines of credit and cash advancements.

To find out more about accessing a Bank on Business with Enterprise Bank specific to your business needs, call (412) 487-6048.  We will match you up with one of our experienced Relationship Managers, who will work with you closely on the banking and/or financing programs that will best fit you and your business.