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Frequently Asked QuestionsAbout Commercial BankingAbout Small Business BankingAbout Personal BankingFrequently Asked Questions about SBA Loans
How can I deposit money without going into a bank branch? Scan and Send to deposit your business checks with Remote Deposit. Remote Deposit is a revolutionary technology that enables your business to scan paper checks directly from your office and transmit those images to the bank via a secure internet connection for processing and clearing. View our demo for more informationIs my business eligible for SBA financing? Over 95% of the nation's companies are classified as "small businesses" by SBA standards. Limitations are set by total revenues and number of employees according to industry. Almost every type of business qualifies for SBA financing: manufacturing, wholesale, service, retail. Loans cannot be made to speculative businesses, media businesses or businesses engaged in gambling activities. Select one of the following for more information:What are the advantages of SBA financing for my business? Simply put, a longer term means lower payments. Lower payments allow you to retain and utilize more working capital, which is essential for a growing business. Additionally, there are minimal prepayment penalties on SBA loans. All SBA loans are fully amortized. Therefore, your business will not be impacted with renewal fees, interim appraisal costs or untimely balloon payments.Zions Small Business Finance offers SBA 7(a) financing up to $2 million and SBA 504 loans up to $5 million. What can the funds be used for? Loans can be used for virtually any legitimate business purpose. Examples include: Purchase real estate, make improvements to your business property, purchase equipment, expand a business, consolidate debts, purchase another business, construct a new facility and finance a franchise.Aren't SBA guaranteed small business loans only for businesses that are not creditworthy by traditional banking standards? On the contrary, SBA financing will not be extended to any business that does not demonstrate the ability to repay debts. The longer terms allowed with SBA financing can enable your company easier debt qualification based on lower payments.What amount of equity will I be expected to have in my financing request? For an existing business, borrower equity can be as little as 10%, depending on creditworthiness. Start-up businesses are required to contribute at least 30% of the total project costs. Equity injection is typically cash.
Will the government be looking over my shoulder for the duration of my loan? As with any commercial loan, your lender, rather than the government, monitors and services your loan. The government's involvement relates to the guarantee only in the event of default.What are some common myths about SBA financing?
Can SBA loans be used to refinance existing business debt? Yes, but certain criteria applies.Can SBA financing be used for construction? Yes, as long as the business will occupy at least 60% of the new building. The construction loan will convert to a fully amortized loan at the end of the construction. If an existing building is financed or refinanced, your business must occupy at least 51% of the facility.What costs are associated with an SBA loan? By statute, the maximum rate charged is 2.75% over the National Prime Rate for loans with maturities of seven years or more, and 2.25% over national prime rate for loans with maturities of less than seven years. The SBA itself charges a guarantee fee based on the loan amount, which is the only cost associated with the benefits of long term SBA borrowing. This fee can be financed as part of the loan proceeds. In addition, as with any other loan, the borrower will be responsible for direct processing costs such as title insurance, appraisals and other closing costs.How long will I have to wait for a decision on my application? Qualified applicants are given a pre-qualificiation letter (letter of interest) outlining major points of the loan, if requested. Upon receipt of all required information from the borrower, a formal request is submitted to our underwriters, with a decision usually within 5 business days.What alternatives do I have to foreclosure?Your temporary alternatives are:
If your situation needs a more long-term alternative, your options are:
Click here to learn more or call us now so we can help you find an alternative to foreclosure! What can I do to make sure my financial information stays secure? You can help safeguard your information with the following practices:
How can I transfer funds to a friend or family member? Banking is made even easier with Transfer-to-a-Friend — a free online banking feature that allows CB&T Online Banking customers to transfer funds from your account to the account of another online banking customer at CB&T. On a stop payment request, how do I know when the check is stopped? There are time-related conditions that must be met before a payment can be stopped. If you have questions about processing conditions for a stop payment request, contact us. What does the confirmation number mean on the stop payment request? The confirmation number is a tracking number for you and us. It supplies a record of the request. The confirmation number does not indicate that the payment has been stopped. There are conditions for stopping a check. If you have questions about a stop payment request, contact us. What if I enter the wrong check number on a stop payment request? Provide as many details as possible with your stop payment request. This will help us catch inconsistencies or possible errors. If you receive a confirmation number for a request that you discover is incorrect, contact us immediately to see what actions are available to you. Direct Deposit is a service that enables a customer to have funds electronically deposited into an account. This is common in the case of an employer electronically depositing and employee's payroll into a particular account. When can I change or delete transfers? You cannot change or delete a transfer that is already in progress. You can change or delete any information for a transfer that has a status of Scheduled or Disallowed. You must be the originator of the transfer to change or delete it. You can change a single transfer to a recurring transfer, but you cannot change a recurring transfer to a single transfer. You can change or delete a transfer before the transfer date as long as the status of the transfer is not In Progress. How are recurring transfers processed? As soon as you set up a recurring transfer, the first transfer of the series appears on the Transfers page. When the first recurring transfer is made, the next recurring transfer appears on the Transfers page. The recurring transfer starts on the date you enter in the Transfer Date field and recurs based on the frequency you enter in the Frequency field. For example, you create a recurring transfer of $100 from your checking account to your savings account. You enter a start date of 01/04/2008, which is on a Friday. For each frequency, assuming valid processing days, the transfer would be made as described below, based on the ending criteria for the transfer:
What determines the date range for which I can view transfers? The date range in the View Transfers fields on the Transfers page determines the days for which you can view transfers. The default date range is based on the number of days in the past and the number of days in the future from the current system date that we selected. You can change the dates in the View Transfers fields to the dates for which you want to view transfers. What happens if the transfer date I enter is on a weekend or a bank holiday? We determine the processing days and times for all transactions. If you enter a transfer on a non-processing day or after the cut-off time for daily processing, we will process your transfer on either the previous or the next closest processing day. What information is required to transfer funds? The following conditions and information are required to transfer funds:
When the transfer date is equal to the current date, the transfer status moves from Scheduled to In Progress. Based on whether your financial institution processes transfers in batch or real-time mode, the transfer might be executed immediately or on a predetermined schedule. When the transfer is complete, the transfer status moves from In Progress to Completed, if the transfer was successful, or Disallowed, if the transfer failed. If the transfer failed, the system displays a message for the reason for the failure, and you have the opportunity to correct the transfer and try to execute it again. Why is my transfer disallowed/failed? A disallowed/failed transfer is a transfer that has been rejected, typically for insufficient funds. You can tell when a transfer is disallowed/failed because you see in the Status field on the Transfers page. Disallowed/failed transfers are not displayed on the Activity page. For a disallowed/failed transfer, you can choose to delete the transfer or change it and reschedule it. Note: If you close your account, scheduled transfers can become disallowed/failed transfers if they are processed after your account is closed. |
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