Merchants Bank of Indiana (MBI) is proud to collaborate with small business owners to provide a number of financial assistance programs – from debt financing and working capital to acquisition and purchase of equipment – for those small businesses ready to think big.
We are excited to share that our Small Business Administration (SBA) Group recently closed two SBA 7(a) loans for two franchise companies. In the state of Washington, a $3.6 million loan was provided for a nationwide hospitality chain, and in Pennsylvania, a $1.9 million, 10-year loan was secured for a franchise commercial painting company.
MBI has been designated a PLP (Preferred Lenders Program) Lender for the SBA, an accreditation which allows the bank to make the final credit decision, which in turn speeds up the approval and closing process. From now until September 2021, all SBA 7(a) loans have an increased guarantee from 75% up to 90% and a waiver of all fees under the CARES Act. In addition, SBA will also cover three months’ worth of payments (up to $9,000 a month) on loans approved and fully disbursed before Sept. 30, 2021.
The 7(a) loan is the SBA’s most common program for businesses requiring financial help and can be used for a limited variety of services. The hospitality business plans to utilize the funds to purchase a new hotel as an additional franchise. The painting company will use the funds to expand into a different state to broaden their reach and increase their clientele.
During the pandemic, these franchises, like many other small businesses around the world, sought funding to benefit their businesses during the downturn economy. Specifically, hospitality took one of the biggest hits due to travel restrictions and stay-at-home orders across the country. Many bank lenders tightened and shut down their credit boxes when it came to funding the hospitality industry and other impacted franchises. Not us.
Our credit boxes remain open. MBI is actively lending, and we’re supporting all small businesses that are in need of financing. We take pride in leaning into these difficult situations rather than shying away. Our SBA Group will continue to support your company, looking big picture at what we can do to provide relief at a time where every penny counts.
Merchants Bank of Indiana is ready to serve your business no matter your size, shape or location. Interested in learning more about what our SBA Group can do for you?