Local Bank Highlights SBA Loan Options Amidst Rising Interest Rates
RENO, NV – As the Federal Reserve continues to influence lending rates, Plumas Bank is emphasizing the benefits of both fixed and variable rate SBA 7(a) loans for Nevada businesses, offering a personalized approach to navigating the financing landscape. The bank’s Small Business Lending Group Manager, Rodney Borges, detailed the current options and provided advice for first-time borrowers in a recent statement.
The current prime rate stands at 7.5%, impacting variable, or floating, rate SBA 7(a) loans which typically range from 9.5% to 10.5%. These rates fluctuate with the prime rate, creating less predictability for borrowers. Tho, Plumas Bank also offers fixed-rate loans, currently ranging from 7.5% to 8.5% for terms of 7 to 25 years, depending on how the loan proceeds will be used. Crucially, these fixed rates are not tied to the prime rate or Federal Reserve decisions, offering borrowers stability in their financial planning.
Understanding SBA Loan Options
SBA 7(a) loans are a popular financing tool for small businesses, and understanding the different rate structures is key.Variable rates adjust with market conditions, while fixed rates remain constant over the loan term. The choice depends on a borrower’s risk tolerance and financial projections.
Plumas Bank differentiates itself through a high-touch, personalized service model. Unlike increasingly automated lending processes, the bank maintains direct dialog between borrowers and its team – from business progress officers to underwriters and processors – throughout the entire submission process. This approach, according to Borges, not only speeds up decision-making but also fosters stronger relationships, even providing constructive feedback and option solutions to applicants whose loans are not initially approved.
Tips for First-Time Borrowers
Borges offered key advice for those new to the SBA loan process:
Complete Applications: Submit all requested documentation, including tax returns and a extensive business plan. Incomplete applications cause delays.
Clear Loan Purpose: Specifically outline how the loan funds will be used – whether for equipment, working capital, real estate, or other business needs.
Demonstrate Repayment Ability: Present a clear plan outlining how the loan will contribute to business growth and how the loan will be repaid.
Who Benefits from SBA Funding?
Plumas bank reports working with a diverse range of businesses seeking SBA funding, including:
Businesses Seeking Expansion: Entrepreneurs looking to acquire existing businesses, open new locations, or invest in business-related real estate.
Businesses with Specialized Financing Needs: Those requiring funds for tenant improvements, equipment purchases, or working capital.
plumas Bank’s Performance & Future Outlook
Despite a recent industry-wide increase in default rates, Plumas Bank reports a default rate of less than 1%, attributing this success to consistent and responsible credit policies honed over 17 years of experience in the SBA lending market. The bank positions itself as a provider of “common-sense lending and honest answers” for businesses of all sizes.
Rodney Borges is SVP, Small Business Lending Group Manager at Plumas Bank.*
