Mercantile Bank Small Business Loans

Looking for a Small Business Loan ?

Mercantile Bank has been
designated a SBA Preferred Lender
Mercantile Bank has been designated a
Preferred Lender by the Small Business
Administration. A Preferred Lender is
the highest designation given to banks
using the SBA’s loan guarantee programs.
Preferred lenders are chosen from the
SBA’s best lenders and enjoy full
delegation of lending authority which
allows us to significantly speed up the
loan approval process.

SBA Guaranteed Loans
Loans backed by the Small Business
Administration can be used for startup
costs, equipment purchases, capital
improvements and permanent working
capital. SBA loans offer longer terms
and lower down payments than
conventional term loans, making
them an affordable solution.

SBA Frequently Asked Questions

How does the SBA Program Work?
A lender provides the actual loan to the
borrower. The SBA guarantees a portion of
the loan (between 50%-85% depending on the
program) acting much like a co-signer. This
helps the lender be more comfortable with a loan
that they might otherwise not approve, such as
a loan for a start up, or a borrower that has less
collateral than a bank requires.

Why should I consider an SBA loan?
There are many reasons why a SBA guaranteed
loan should be considered, including:
   • Longer terms
   • (up to 7 years for working capital; up to 25 years for real estate)
   • Flexible repayment options
   • Lower down payments
   • Improved cash flow, so you can use your cash in your business

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What types of loans are available through SBA?
The SBA offers many types of loans, catering to certain business needs, including the SBA Express Term Loan, 7(a) Regular Business Loan and 504 Development Company Loans.

How do I qualify for an SBA loan?
A bank would expect you to be able to repay the loan from the cash flow of the business. You must be of good character and never convicted of a felony. The SBA typically looks for management capability, collateral pledge and owner’s equity contribution as part of the deal. If you own 20% or more of the company, you will be required to personally guarantee the loan. There are some industries that are not eligible for SBA loan.

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What other requirements does the SBA place on borrowers?
Each SBA loan program has different requirements. Learn more about the program requirements to determine which loan would be best for your business.

How do I apply for an SBA loan?
Contact Stephen Lucitt at 617-247-2800 or by email
at Lucitt@MercantileBoston.com

Can I get a line of credit?
Lines of credit are not available through SBA

What is an SBA Preferred Lender?
As an SBA Preferred Lender, the SBA has authorized Mercantile Bank to make lending decisions on their behalf. Loan proposals do not need to go to the SBA for approval, which means the process moves more quickly.

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Click here to visit the SBA Website for more information and
useful business tools.

For more information about SBA Loan Programs or to apply for a SBA Loan call Stephen Lucitt (our Preferred SBA Lender) at 617-247-2800 or email Steve at Lucitt@MercanitleBoston.com.

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