What is a bank term loan (MTKT Non-SBA Loan)?
Non-SBA loans offered by MTKT bank partners are fixed-rate, term loans with shorter repayment terms and a faster, less document intensive alternative to a traditional 10-year term SBA loan.
Why should I apply for a non-SBA loan?
A non-SBA term loan can be a good option if you don’t initially meet the eligibility requirements for an SBA loan. It can also be a good option if you require funds more quickly than even our streamlined SBA process can provide.
There’s only one streamlined application to complete whether you are applying for an SBA loan or decide to opt in to a non-SBA option.
What are the advantages of a non-SBA loan?
A non-SBA term loan has fewer requirements than an SBA loan. It’s a reasonable option for some businesses to get the funds needed to grow. The non-SBA term loan offers a fixed rate and low monthly payments. In addition, there are no pre-payment penalties if you decide to refinance with an SBA loan later. In the event you decide to refinance with an SBA loan through MTKT within 6 months of obtaining the first non-SBA loan (and you are able to obtain an SBA loan from a MTKT bank partner), we’ll credit back all of the referral and packaging fees from your first non-SBA loan toward the referral and packaging fees for your SBA loan to the extent these fees do not exceed the packaging and referral fees for the SBA loan. Even though we need to do additional work to package the SBA loan, MTKT credits back fees because we believe it is the right thing to do for our clients.
What types of non-SBA loans does MTKT facilitate?
MTKT currently offers the following non-SBA loans through its bank partners for working capital, debt refinance and new equipment purchase:
- $30,000 to $200,000 loan amounts
- 2 – 5 year repayment terms
- Fixed interest rate from 5.99% to 24.99%*
- Monthly repayments
- No pre-payment penalties
Non-SBA term loans can be a reasonable alternative financing option when you don’t qualify for an SBA loan immediately or need funds more quickly than even our streamlined SBA process can offer.
* Interest rate depends on loan term, business borrower credit score and financial profile.
What are the basic requirements for a non-SBA term loan through MTKT Loans?
- 2+ years in business
- Business owners must be U.S. citizens or legal permanent residents
- Business owners must have personal credit scores above 640
- Cash flow to support loan payments
- Bankruptcies or foreclosures in the last 3 years
- Outstanding tax liens
Do I need to personally guarantee a non-SBA term loan?
Business owners who own 20% or more of the business must provide a personal guarantee.
What can I use my funds for?
There are many ways you can use proceeds from a non-SBA term loan including:
Get funds to hire additional staff, increase marketing or replenish inventory.
Buy new equipment to improve productivity.
Pay off high-cost debt and increase your monthly cash flow.
What will my interest rate be?
Interest rates for non-SBA loans are fixed and determined by the credit profile of the guarantors, the financials of the business and the term of the loan.
Are there fees or other costs?
Non-SBA term loans through a MTKT bank partner include a 3% referral and 3% packaging fee. Bank closing costs are estimated to be between $200 and $300. At 3%, referral and packaging fees for non-SBA loans are more expensive than our referral and packaging fees for SBA loans because non-SBA loans are typically smaller than SBA loans and we need to cover our fixed costs. You’ll find that MTKT Loans’ non-SBA referral and packaging fees are similar in cost to the origination fees that online medium term lenders charge.
In the event you decide to refinance with an SBA loan through MTKT within 6 months of obtaining the first non-SBA loan (and you are able to obtain an SBA loan from a MTKT bank partner), we’ll credit back all of the referral and packaging fees from your first non-SBA loan towards the referral and packaging fees for your SBA loan to the extent these fees do not exceed the packaging and referral fees for the SBA loan.
What are the repayment terms?
Non-SBA term loans through our bank partners have a term of 2 – 5 years with monthly payments.
Are fees deducted from loan proceeds?
Yes. For non-SBA term loans, fees are deducted from loan proceeds.