Businesses looking to take out a loan from a local community bank now have more options.
Online small business lender Fundation and BancAlliance, a network of community banks, have teamed up to expand access to loans for small businesses.
BancAlliance is a network of more than 200 community banks across 40 states.
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The program, developed by the 2 organizations, allows small businesses to use an online portal that will help guide them to the products that best meet their needs.
“This program will dramatically broaden the number of small business customers that can be served through the community bank system, and we are thrilled to be in a position to enable that,” Sam Graziano, CEO of Fundation, said in a press release.
The program expands customer access to credit products for small businesses and reduces the inherent costs in small-business lending, the CEO said.
“Community bankers have frequently told us about the challenges of operating a small business lending operation in a cost-efficient manner, and this program will begin to change that dynamic,” Brian Graham, manager for the BancAlliance network, said in a press release.
Fundation offers conventional loans of $20,000 to $500,000.
The loan features include fixed-rate installments, with payments that are structured like a fixed-rate mortgage.
It also allows borrowing for short-term working capital needs and long-term borrowing up to 4 years.
Like personal loans, small business loans through the company require no specific collateral. You can prepay without any penalty, and small businesses have the option to apply for refinancing once a solid payment history is established.
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Annual percentage rates range from 7.99% to 29.99%.
In order to be eligible for a loan through Fundation, you must be in business for at least 2 years, and have 3 employees, at least $100,000 in annual revenue and good personal credit.
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