Business Financing
Business Financing for Every Stage of Growth
Whether you need working capital to bridge cash flow gaps, financing to expand your location, or an SBA loan for a major acquisition, Federal Crown Bank offers four core business financing products with competitive terms and the speed your business needs to move forward.
Business loan minimum
Business line of credit
Decision on some products
Preferred Lender status
Financing Products
Four Business Financing Solutions
Different business needs require different financing structures. We offer the four most important financing products for small and mid-sized businesses — all from a single lender relationship.
- Loan amounts from $25,000 to $250,000
- Fixed or variable interest rate options
- Terms from 12 to 60 months
- Fixed monthly payment simplifies budgeting
- Use for expansion, renovation, inventory, or equipment
- Same-day credit decision for established customers
- Credit lines from $10,000 to $100,000
- Draw funds as needed — pay interest only on what you use
- Variable rate tied to Prime Rate
- Revolving — repay and redraw without reapplying
- Access funds via Online Banking, check, or debit
- Ideal for seasonal cash flow, payroll gaps, bridge financing
- Loan amounts up to $5 million (SBA maximum)
- Lower down payment requirements vs. conventional
- Longer repayment terms (up to 25 years for real estate)
- Backed by U.S. Small Business Administration
- Federal Crown Bank is an SBA Preferred Lender — faster processing
- Use for real estate acquisition, acquisition financing, working capital
- Finance from $25,000 to $250,000+ per transaction
- Equipment serves as collateral — may not require additional collateral
- Fixed rate and term aligned to equipment useful life
- Preserve working capital — avoid large upfront cash outlay
- Potentially 100% financing on qualified equipment
- May qualify for Section 179 tax deduction on purchase year
Financing Features
Built for Business — Not Just Banking
Business Term Loans and Equipment Financing offer fixed rates — locking in your cost of capital today and making monthly payments perfectly predictable for cash flow planning purposes.
The Business Line of Credit is revolving — as you repay principal, your available credit is restored automatically. You don't need to reapply each time you need funds within your approved limit.
SBA loans carry a government guarantee of 75%–90% of the loan — reducing lender risk and allowing more favorable terms for borrowers who might not qualify for conventional bank financing alone.
Equipment financing uses the purchased equipment itself as primary collateral — reducing or eliminating the need for additional collateral from other business assets or personal property.
Finance owner-occupied commercial real estate through conventional commercial mortgages or SBA 504/7(a) programs — with longer terms and amortization schedules than standard business term loans.
Both the Business Line of Credit and Business Term Loan can be structured specifically for working capital needs — covering payroll, inventory purchases, or accounts receivable gaps during seasonal revenue fluctuations.
Product Comparison
Business Financing Side-by-Side Comparison
| Feature | Business Term Loan | Line of Credit | SBA 7(a) | Equipment Financing |
|---|---|---|---|---|
| Amount Range | $25K–$250K | $10K–$100K | Up to $5M | $25K–$250K+ |
| Loan Term | 12–60 months | 12-month revolving (renewable) | Up to 25 years (real estate) | 24–84 months |
| Rate Type | Fixed or Variable | Variable (Prime + margin) | Fixed or Variable (SBA max rate) | Fixed |
| Collateral | Blanket lien on business assets | UCC-1 blanket lien | Varies; SBA guarantee reduces req. | Equipment itself |
| Best For | Expansion, renovation, one-time needs | Cash flow, payroll, seasonal needs | Major acquisitions, real estate | Machinery, vehicles, technology |
| Typical Funding Speed | 1–3 business days (after approval) | 1–2 business days | 30–90 days | 3–7 business days |
Qualification Requirements
What Does It Take to Qualify?
Requirements vary by product. Here's what lenders evaluate — and what documentation you'll need to prepare before applying.
| Requirement | Business Term Loan | Line of Credit | SBA 7(a) | Equipment Financing |
|---|---|---|---|---|
| Minimum Time in Business | 2 years preferred | 2 years preferred | 2 years (most programs) | 2 years preferred |
| Minimum Annual Revenue | $100,000+ | $75,000+ | Varies (cash flow coverage) | $100,000+ |
| Personal Credit Score | 680+ preferred | 660+ preferred | 650+ (SBA guideline) | 680+ preferred |
| Debt Service Coverage Ratio | 1.25x minimum | 1.15x minimum | 1.25x minimum | 1.20x minimum |
| Required Documents | 2 yrs business tax returns, YTD P&L, business bank statements (3 mo) | 1–2 yrs business tax returns, 3 months bank statements | 3 yrs tax returns, business plan, personal financial statement, SBA forms | Equipment invoice/quote, 2 yrs tax returns, 3 months statements |
All loans subject to credit approval. Requirements shown are guidelines — actual underwriting considers the full credit picture including cash flow, existing debt obligations, collateral, and business history. Speak with a business lending specialist for a pre-qualification assessment.
Real Business Scenarios
What Could You Finance?
Common business financing scenarios and which product typically fits best for each situation.
Your retail business needs to pre-purchase $80,000 in seasonal inventory 60 days before peak season — before you have the sales revenue to cover it. A Business Line of Credit lets you draw exactly $80K, sell through, repay the line, and redraw for next season without re-applying.
You want to lease and build out a second location. Total buildout cost: $180,000. A Business Term Loan at a fixed rate for 48 months gives you predictable payments while the new location ramps up to profitability. No surprises in your monthly cash flow.
Revenue is growing faster than your payroll. You need to hire 4 employees now but won't see the revenue impact for 90 days. A Business Line of Credit bridges the payroll gap — draw when needed, repay when new revenue arrives.
Your restaurant needs a new $65,000 commercial kitchen system. Equipment financing lets you purchase it now, use it to generate revenue, and pay for it over 5 years with a fixed monthly payment that aligns with the equipment's useful life.
You have the opportunity to acquire a competitor for $1.2M. An SBA 7(a) loan allows you to finance the acquisition with a lower down payment (as low as 10%) and a 10-year term — far more favorable than conventional bank financing would permit.
Your business is profitable, but you have $200K in outstanding invoices and $150K in near-term payables. A Business Line of Credit bridges the gap — draw to cover payables, repay when clients pay. Interest only on what you use, only for the days you use it.
SBA Preferred Lender
Why Our SBA Preferred Lender Status Matters to You
The SBA Preferred Lender Program (PLP) is a designation granted by the U.S. Small Business Administration to lenders with a proven track record of SBA loan origination and strong credit quality. Federal Crown Bank holds Preferred Lender status — the highest designation available.
What this means for your SBA loan application: as a Preferred Lender, Federal Crown Bank has delegated authority to make credit decisions on SBA loans without submitting each loan individually to the SBA for approval. This dramatically accelerates processing — while non-PLP lenders may wait weeks for SBA approval, Federal Crown Bank can often issue SBA loan approvals significantly faster.
- Faster loan approval — delegated SBA authority eliminates SBA review wait
- Dedicated SBA lending team with deep program expertise
- Streamlined documentation requirements vs. non-PLP lenders
- SBA 7(a) loans up to $5 million for working capital, expansion, and acquisitions
- SBA 504 loans for commercial real estate and major equipment ($5M–$20M+ available)
- Preferred Lender relationships mean deeper familiarity with SBA guidelines
FAQ
Business Financing FAQs
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Is a personal guarantee required for business loans?For most small business loans, yes — a personal guarantee from the primary owner(s) (typically those with 20%+ ownership) is standard practice. A personal guarantee means you agree that if the business cannot repay the loan, you are personally liable — putting your personal assets at risk. SBA loans require personal guarantees from all owners with 20%+ ownership. Some larger, well-established businesses with strong balance sheets and collateral may be able to negotiate unsecured business loans or reduce personal guarantee requirements — discuss with your lending specialist.
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Are there loan options for startups or businesses under 2 years old?Startups and early-stage businesses (under 2 years) are more challenging to finance through conventional bank loans because lenders rely heavily on business financial history. Options for newer businesses include: SBA Microloan Program (up to $50,000, for businesses under 2 years through SBA intermediaries), business credit cards (which use personal credit), equipment financing (where equipment value provides security), or CDFI/community lender programs. Federal Crown Bank specialists can help identify options that match your business stage. Building a banking relationship early — even with a checking account — establishes history that benefits future loan applications.
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How long does it take to receive funds after approval?Funding timelines vary by product: Business Lines of Credit and Term Loans for existing customers can fund in 1–3 business days after final approval. Equipment financing typically takes 3–7 business days (the equipment purchase transaction must be coordinated). SBA loans have a longer timeline — 30–90 days from application to funding, depending on documentation completeness and program type. Our SBA Preferred Lender status reduces SBA processing time significantly vs. non-PLP lenders.
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Should I choose a fixed or variable rate for my business line of credit?Business lines of credit are typically variable-rate products (tied to the Prime Rate), which means your interest costs fluctuate with market rates. Since lines of credit are meant for short-term, revolving use — not long-term capital — the variable nature is generally appropriate. For longer-term capital needs where payment certainty matters, a fixed-rate term loan is usually more appropriate. If you're concerned about rate increases on your line, discuss a fixed-rate equivalent term loan for the stable portion of your capital needs with a lending specialist.
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Can I refinance an existing business loan with Federal Crown Bank?Yes — refinancing an existing business loan (from Federal Crown Bank or another lender) is an eligible use of both conventional business term loans and SBA 7(a) loans. Refinancing makes sense when: current rates are lower than your existing loan rate, you want to extend your term to reduce monthly payments, you need to consolidate multiple business debts into one payment, or your credit profile has improved and you qualify for better terms. Note that SBA refinancing has specific eligibility requirements — the existing debt must not already be SBA-guaranteed in most cases.
Ready to Finance Your Business's Next Step?
Our business lending specialists work with you to understand your goals and identify the right financing structure. Apply online or talk to a specialist at any of our 4,300+ locations.