Business Loans in Minnesota. Decided Here.

Community banks, regional and national banks, credit unions and non-bank lenders all lend to Minnesota businesses. Security Bank & Trust Co. is a Minnesota community bank that has financed businesses here since 1935 and operates 21 locations across the Twin Cities metro and greater Minnesota. The practical difference between lender types is where the credit decision is made and whether you can reach the decision maker.

Commercial term loans, business lines of credit and working capital financing, commercial real estate loans, construction and bridge financing, equipment financing, SBA 7(a) and 504 loans, and business acquisition financing. We also serve municipalities, nonprofits, agricultural operations and professional practices. Most businesses use more than one of these at the same time.

A term loan funds a fixed amount on day one and repays on a set schedule. A line of credit is an approved limit you draw against as needed, with interest owed only on the drawn balance and capacity that refreshes as you repay. Match the tool to the need: term loans for assets that last for years, lines of credit for working capital that turns over within the operating cycle.

Inventory purchases, payroll ahead of collections, materials for a contract, bridging the gap on receivables with long payment terms, and short term opportunities that require moving quickly. It is not the right tool for funding operating losses or buying a long lived asset, because the repayment source has to be the cash the borrowing generates.

Yes, though a startup is underwritten differently than an established business because there is no operating history to spread. Lenders look harder at the owner's experience in the industry, the equity being contributed, projections that hold up to questioning, and any collateral or guarantee support. SBA programs exist in part to make startup and acquisition lending workable, which is why many new businesses are financed that way.

Cash flow first, because that is what repays the loan. Then the balance sheet, the collateral, the owner's experience and personal financial position, the industry and the specific use of the money. Debt service coverage, which compares annual cash flow to annual loan payments, is usually the first number a lender calculates.

Typically business and personal financial statements, business and personal tax returns, a schedule of existing business debt, and documents specific to the transaction, such as a purchase agreement on an acquisition or a budget and plans on a construction project. Our Commercial Loan Application Checklist is available as a free download on our forms and applications page, with no form to complete.

It depends far more on how complete the file is than on the bank. A straightforward request from a business with current financials moves quickly. Requests involving real estate appraisals, construction budgets, SBA program requirements or an acquisition take longer because third parties are involved. The fastest thing you can do is start the conversation before you need the money.

Yes. Many of our lending relationships begin with a business that keeps its deposits elsewhere. Over time most move the operating accounts as well, because treasury services and lending work better together, but that is your decision and not a condition of the loan.

Reach out through our business lender contact page or stop into any of our 21 Minnesota locations. Come with what you are trying to accomplish rather than a specific product in mind. The first conversation is about the structure, and it is free.