sbl program faq

sbl program faq

1. What is the ECSB small business express loan program? 

The ECSB small business express loan program was developed to provide a streamlined way of processing loan applications for business relationships that have less than or equal to $250,000 in loan exposure with the Bank.Generally, businesses with revenue of $1 million or less that are within the Bank’s assessment area will fall under this program (see below for listing of cities & towns that fall within this area).If you currently have more than $250,000 in credit with ECSB, you should apply for additional credit directly with your lending officer or contact us at 1.866.354.3272 to speak with a lending officer.
 
2. What factors does the Bank consider when reviewing my application?

Depending on the amount you are looking to secure, there are minimum criteria that you must meet, including:
  • The business is not considered an ineligible industry under the SBA loan program guidelines 
  • The business and owner(s) are not delinquent on taxes and there are no outstanding tax liens
  • There are no pending litigation and/ or unsatisfied judgements in the name of the business or its owner(s)
  • The business or owner(s) did not declare bankruptcy in the last 10 years
Please note that, at the present time, the Bank is not opening accounts for marijuana-related businesses.
 
For loan exposures of $50,000 or less, the Bank employs a simplified approach for approval that is based on the factors including:
  • Minimum personal and business credit scores
  • The business operates for profit and has been in existence for at least 2 years
  • The business needs to have a minimum annual revenue of $200,000 and has a minimum number of debit and credit transactions
  • The business must be registered in Massachusetts or Delaware
For loan amount in excess of $50,000, the decision will be predicated upon a review of the business and owner financial information.  Please refer to documentation requirements for such  loans.    
If you believe that you do not meet any of these criteria, please contact us at 1.866.354.3272 to discuss your circumstances with a lending officer.
 
3. What information is needed to submit an application?

In addition to some basic information about the business and the owners, the following information would generally be required:    

For combined loan exposures of less than or equal to $50,000:
  • 6-12 months of bank statements
  • Business and personal credit reports  
  • Where applicable, we will also require specific information about the equipment or vehicle you intend to finance
For combined loan exposures of more than $50,000:
  • Most recent Federal Income Tax Return for the business
  • Most recent Federal Income Tax Returns on all owners
  • Year-to-date financial information including income statement and balance sheet, Account Receivable Agings
  • A fully completed and signed personal financial statement on each owner & guarantor
Please note that your information will not be reviewed until all the required information is provided  and you click “Submit” at the end of the application.

4. Are there any fees associated with submitting an application?

A fee of $250.00 will be assessed on all loans and will be deducted from your loan proceeds.

5. Does the loan require collateral? What collateral is acceptable?

Yes, the Bank will file a UCC on all business assets and must be in first lien position through the life of the loan.  Depending on the purpose of the loan, the Bank may also place a lien on specified equipment and/ or vehicles.

6. How is my interest rate determined?

Your interest rate may differ based on your credit worthiness, overall relationship with East Cambridge Savings Bank and loan amount.

7. What is the minimum and maximum loan amount that my business can apply for?

You can apply for a loan amount between $5,000 to $250,000 under this program.   If you are in need of a larger, more specialized loan, contact us at 1.866.354.3272 to speak with a lending officer who can tailor a financing solution to fit your business needs.

8. What is the maximum or minimum loan term that I can apply for?

The loan term under this program can be between 1 and 7 years.

9. Does the Bank require a Personal Guaranty?

Yes, all loans will require unlimited guarantees from owners with 20% or more ownership.

10. Do I need to have an account with East Cambridge Savings Bank to apply for small business financing? 

You do not need an account to apply, but if your financing is approved, we can help you open a business checking account as part of the loan closing process. Loan proceeds will be deposited into that account at closing. For your convenience, we recommend that monthly loan payments be auto debited from that account as well.
 
11. After the Bank receives my application, how long does the approval take?

The Bank will make every effort to provide a speedy decision on your loan application.  However, the nature of your business, speed of documentation and other factors may affect the overall timeline. Once an application has been submitted,a Bank representative will contact you within 2 business days.  Out team will work closely with you and communicate questions and/or missing information in a timely manner.     

12. Once a loan is approved, how long does it take to receive funds?

Our team will work closely with you to make sure your funds are disbursed as soon as possible.  Factors such as type of collateral and speed of documentation can affect the overall timeline. 

13. My business is interested in working with East Cambridge Savings Bank, but we are not located in the Bank’s lending area. Do you have financing options for me?

Yes!  Please contact us at 1.866.354.3272 to speak with a lending officer.

14. Do you offer business lines of credit?

Yes! Please contact us at 1.866.354.3272 to speak with a lending officer to discuss how we may best serve you.  The product is not currently available on the online application portal.

15Does East Cambridge Savings Bank fund new business startups?

Yes!  Please contact us at 1.866.354.3272 to speak with a lending officer to discuss how we may best serve you. 
 

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