Grow Your Small Business: Get Started with Financing
Small businesses in all stages of the business journey can benefit from additional capital from time to time. With the variety of business loan options available, knowing where to begin and understanding lending language can be overwhelming. Bank of Bozeman is proud to provide dedicated, personalized support for our community’s entrepreneurs and small business owners. Our goal is to make sure you have access to the financing you need to be more competitive, profitable, and resilient. We’ve put together a quick guide to small business loans to get you started.
Guide to Small Business Loans
What are the types of Montana small business loans?
SBA loans are issued by a bank and partially guaranteed by the U.S. Small Business Administration. Although SBA loan approval generally has tighter lending standards than other loan options, for qualified borrowers, the flexible terms and low-interest rates of SBA loans make them an excellent option for financing business needs. Terms are competitive, and many SBA loan programs offer longer terms and higher lending ceilings. To qualify, a business usually needs several years of history and to be defined by the SBA as a small business with sound finances and credit history.
Our SBA loan options include the following:
- 7(a) loan programs
- 504 loan programs
Equipment loans can help with new purchases, modernizing or expanding equipment, or even refinancing debt on previous equipment purchases. This type of loan covers everything from farm machinery to kitchen appliances, dental or medical equipment, and office furniture. You could use an equipment loan to purchase new vehicles or upgrade your technology or computer hardware. These secured loans are often asset-based, meaning the equipment is used as collateral to secure financing. Because of collateral, these loans tend to have attractions.
Bank of Bozeman offers construction loans for commercial contractors with various terms and rates. Whether financing custom, spec, or pre-sold homes, these types of loans provide the funds needed to build residential properties. Usually, construction loans have variable interest rates tied to the prime rate and are generally on a shorter timeline (6-24 months). Our Bozeman lenders can help you get qualified for the best possible rates, fees, and conditions.
Bank of Bozeman provides many agricultural loan options to help new and seasoned Montana farmers and ranchers stay the course throughout changing seasons and shifting markets. Agricultural loans include working capital lines of credit, loans for equipment and machinery, land loans, and livestock loans. With an agricultural loan, you can purchase livestock or seed. You can also access interim financing at harvest time to meet short-term cash flow needs. Our lenders help you navigate the financial decisions that come with the agricultural industry.
We work with intergenerational and legacy operations, traditional commercial producers, and specialty or nontraditional operations. We can help you finance a recreational property to enjoy hunting access, cast a line in the river, or create your dream summer retreat where generations of loved ones can gather.
A business land loan is an excellent option if you need financing to acquire raw or undeveloped land that’s being held in anticipation of zoning or are waiting for plans to be drawn and construction financing to be obtained. Bank of Bozeman is ready to help you navigate the business land loan application process with confidence. This type of loan is also ideal if you’d like to secure financing before starting your property search or making a purchase or lease offer.
How are small business loans structured?
Financing with a local bank loan means your loan will typically be structured like this: the lender—either Bank of Bozeman, the SBA, or both—gives a business owner money, which the business owner pays back over a predetermined period, plus interest.
Different types of small business loans have slightly different structures. For example, SBA 504 loans are structured with 50% of the total amount being covered by Bank of Bozeman, 40% by the SBA, and 10% put up by the borrower as a down payment.
Are small business loans secured or unsecured?
Bank of Bozeman provides both secured and unsecured loan options. A secured loan is backed by specific collateral such as inventory, equipment, or real estate. Qualifying for a secured loan might also require a personal guarantee. This collateral acts as security—a guarantee of the borrower’s ability to repay the loan amount.
Unsecured loans, on the other hand, aren’t backed by specific collateral. As a result, most are backed by personal and business guarantees. Unsecured loans can be quicker to fund than secured loans. However, interest rates for secured loans are usually higher.
Bank of Bozeman: Montana’s Choice for Small Business Loans
Our Bozeman lenders can help you find the right loan and terms for your unique small business goals, ensuring you get the money you need to be profitable and resilient. One of the benefits of a local community bank for small business loans is that we take a holistic approach to supporting our borrowers and finding the best solution for your needs. We don’t run every applicant through the same qualifications template. We work one-on-one, helping you navigate all the financing options available.
Working with Bank of Bozeman means you get the advantage of personalized service and greater flexibility in our approval process. We educate you on everything from terms to structure, and our application and approval process is quick, transparent, and straightforward. Once you’re approved, our team is here to support you with dedicated ongoing service. Plus, you have access to an easy-to-use online login where you can manage your loan, make payments, and more.
Whether you’re a sole proprietor or running an LLC, a strategic loan can help expand and sustain your business. At Bank of Bozeman, we’ve worked hard to earn our reputation as one of the most reliable, professional, and capable lenders, helping Montanans achieve business success.
To get started with your application process, fill out our form today. One of our lenders will be in touch with you soon.