Small Business Loan Frequently Asked Questions:

Many of BCI Lending's small business loan options are guaranteed. That is, these loans are backed by the federal government and issued through the Small Business Administration (SBA) or through the U.S. Department of Agriculture (USDA). The guaranty by the federal government is important to small business owners because it ensures true long term financing, which can be vital to bolstering cash flow, especially so in the early years of a small business.

Fully amortizing small business loans are very beneficial to the growth of a small business. Business loans that are fully amortizing are repaid in scheduled (usually monthly) payments of principal and interest over the full term of the loan and do not have early payout provisions like most commercial banking institutions impose on their issued business loans. This means that if you get a fully amortized small business loan through BCI Lending with a term of up to 25 years, then BCI Lending cannot "call" upon the loan to be repaid in full (known as "balloon payments") before the agreed upon term.

It depends on which loan you are applying for. BCI Lending is an SBA Preferred Lender and is able to obligate the SBA for its guaranty of your loan without needing to go through the time-consuming process of filing paperwork for approval to the SBA directly. If you are applying for an SBA loan, you can generally expect to receive funding from the loan within 30 days of BCI Lending receiving all of your necessary information. The USDA does not have a Preferred Lender program so USDA business loans take longer to receive funding; generally, you could expect funding within 30-60 days of BCI Lending receiving your necessary information.

Definitely! BCI Lending encourages you, as a prospective borrower, to be as informed as possible. Our loan repayment calculator can help you determine your monthly payments based upon your loan amount and terms.

An SBA Preferred Lender is an institution that has been approved into the Small Business Administration's Preferred Lender Program (PLP). BCI Lending, as an SBA Preferred Lender, is able to handle your business loan request as though we are an extension of the SBA. We are able to act with authority to obligate the SBA for its guarantee of your business loan. This results in an expedited loan process meaning that your small business can get its needed funding much faster.

• Cash flow:the difference between incoming cash to your business and outgoing cash required to meet operating costs and expenses for a particular period (generally a month/year)
• Commitment letter:A commitment letter is issued by BCI Lending after final approval of your business loan. It represents the final stage in the loan process and it provides the terms and conditions of the loan commitment being made. The letter often entails: (1) loan amount, (2) repayment terms, (3) interest rate and fees, (4) collateral, (5) guarantees and contingencies. Our prospective borrowers should familiarize themselves with a sample commitment letter.
• Personal financial statement:A schedule detailing your personal assets (what you own) and liabilities (what you owe), along with your personal income and other outside obligations for which you could be held responsible. BCI Lending requires a current signed and dated personal financial statement (which can be found here) for all business owners that are applying. If you need assistance filling the statement out, please consult our sample personal financial statement.