Adequate financing will always be the livewire of any going concern, it’s like oil propelling its continued existence amid operating in a competitive business environment. Just like in any normal business setting, there are some financial institutions that have taken it upon themselves to see to the continued existence of these firms, they are willing and ready to provide needed funds to sustain continued operations of small businesses, knowing fully well their value to any economy
It is pertinent to appreciate the effort and good job of one organization that has not relented over the years, it continued to act as the middleman between these financing banks and the small business outfits. Join me in appreciating the US Small Business Administration (SBA), the banks collaboration with SBA had no doubt made for a successful operation as far as financing is concerned, it had made life rosy for these small outlets, they now found a dependable ally as far as financing is concerned.
Atlantic Capital Bank
Financial Experts took time to draft out key banks among the several banks offering these vital tools to small businesses in America, their modes of operation tend to suit the working of these business outlets. The first is Atlantic Capital Bank, its terms and modalities tend to be more suiting when placed side by side with others in same line of business, main reason why it continued to enjoy massive patronage.
It should be noted that the SBA does not have money to dole out to these small businesses, it only act as a middleman, making sure available grants are less cumbersome to access. It usually sets the parameters for loans, which will then be made available by banks like Atlantic Bank. These small businesses usually apply for these loans by coming through the SBA, having it at the back of their minds that they are in for a good deal, they placed a high trust on this body to protect their interests
So many willing investors or business minded individuals still wondered why small businesses have to go through the SBA before accessing a loan or any financing tools that could help propagate such venture, the reason is not farfetched, here are some of the reasons why they should go through the body, the benefits are just endless
-The SBA will use its expertise to making it possible for any small business experiencing financial trouble to refinance an ongoing debt, a step that would have been tedious without the body
-We all know how difficult it can be acquiring own equipment, even large firms don’t find it easy not to mention small business that is just trying to find its feet. Going through the SBA will make such dream come to fruition with ease, the body will get a good bargain for the business
-Unlike what obtains when going directly to a financial institution, the SBA helps small American businesses to negotiate for a deal long term working capital, a good deal if you ask me.
-Small businesses in America usually enjoys the luxury of business acquisition with help of the body
Aside the numerous benefits attributable to these loans, it should also be noted that these small businesses also stand the chances of getting other smaller benefits usually not found while approaching these institutions directly, notable benefits includes
The small firms will have enough time to run their businesses before thinking of payback, a very good deal that allows for such class of business to thrive without any distraction whatsoever
Call it a perfectly and fully amortized loan, you will not be far from the actual fact, that is part of the beauty of what small businesses will enjoy when they go through the SBA
You don’t need to worry yourself as to how to raise a huge amount needed as down payment upon requesting for such class of loans, the SBA involvement meant you are paying a very little from the onset
There are next to nothing penalties attached to these loans, a far cry from what obtains in other kind of loans arrangement
The second on the list of financial institutions supporting small businesses in America is The Wells Fargo, known for its drive in seeing to the expansion, survival and growth of newly set-up or struggling businesses. Its range of services includes providing of modern day banking, financing mortgage related issues, sorting out credit card related transactions, overseeing personal small businesses, not forgetting much needed commercial activities
These small businesses enjoys a further wide range of services from the professionalized counseling they receive from Wells Fargo in-house experts to wide options when it comes to investing in profitable ventures. Known to have its corporate headquarters in California and its much touted operational headquarter is situated in the city of Manhattan, that’s not all. They also have list of managerial offices scattered across major cities of America
All credits to Wells Fargo, it recently launched a program which will change the faces of small businesses in America, many considers this a worthy step which is coming at the right time, no thanks to what many business ventures faced during the peak of the pandemic. Termed “Open For Business Program” is strictly targeted at some specific forms of businesses, for obvious reasons. The bank made a whooping $400 million available to kick-start the program, with the aim of getting to those that truly needs the funding.
A certain twist to the funding is just that the businesses will not get funding directly from Wells Fargo, they will need to go through certain non-profit organizations/ bodies. It should also be noted that the bank is actually providing a gross sum, rather than net, so it can have a far reaching effects.
The loan is readily available for certain aspects of the business community, as I earlier stressed, the minorities owned businesses, Black and African American investors are majorly targeted, this is part of the statement released by the bank’s CEO, Charlie Scharf
JPMorgan Chase Bank
Another American financial institution known to support small businesses in every facets of its operations is the Chase Bank, but popularly known as the JPMorgan Chase Bank. With headquarter in mainland Manhattan, New York, the bank has never relented in its quest to see to the expansion of businesses trying to find footings, necessary supports are given where necessary. The bank is known to operate on a high pedestal, both commercial and consumer banking, its style suited the operations of these small businesses, part of why it continued to enjoy a higher rating among its peers
The bank deals on various capacities as it relates to financial activities, either on a small or larger scale, all in a bid to satisfy the yearnings of its customers. Name it, from providing adequate financing for auto loans, retirement plans, mortgage loans, credit cards banking, commercial banking and so on.
It’s on record that the Chase Bank aside satisfying the needs of small businesses and other little ventures, it services is felt by nearly half of American families, they continued to patronize and enjoy the wide range of services on offer.
The bank was formerly known as Chase Manhattan Bank, not until it decided to merge the popular J.P.Morgan, in the year 2000, it was previously the coming together of Chase National Bank and the Manhattan Company, that occurred in 1955.
The series of merger and how it metamorphosed to become what it turned out to be today didn’t end here, it was also on record that the bank partnered Bank One Corporation in 2004, it later went on to acquire the assets and all other deposits of the Washington Mutual, a step which further boosted its popularity among the American populace.
Call it the all in all bank, then, you will not be far from the truth, its activities never stopped taking the interests of small businesses into consideration at all times. It made these easy by establishing close to 5,000 branches all over the United States, coupled with over 16,000 ATMs. As at year 2016, JPMorgan Chase Bank has on its payroll over a quarter of a million employees and known to have branches in over 100 countries. Experts valued its assets in the region of $2.49 trillion, that same year 2016, considered a very strong financial base
Coming back to part of what small businesses and individuals stand to benefit if they bank with JPMorgan, is possibility of getting a $150 bonus if an account is opened, talking of savings account and a $200 signup bonus for opening a Chase Total Checking account
The bank is very easy to deal with, all you need do is provide these items and you are on your way to becoming a part of this great franchise. Make sure you have a proof of residency, talking of where you stay, secondly, a valid ID is demanded, it can either be a driver’s license or passport, your Social Security Card is also needed, very crucial, you can then cap it all with an initial deposit, bearing in mind minimal deposit to kick-start such class of account
Consumer Credit Unions
Known to have majority of locations in the city of Michigan, such body offers some exciting range of products that will in no small way further enhance the growth and stability of small businesses in the US. Its importance can never be underplayed, its merits are just simply outstanding. Such class of Union has the ability of making individuals and small business owners to get that needed funds at a faster timing than the regular banking system.
There has been this argument as to which will better serve the interest and aspirations of small businesses in the US, while some still felt regular banking will better meet the requirements of these set of business owners, the fact remained that Credit Unions can do more if carefully harnessed. Financial Experts that are well grounded in the areas of operating and running small businesses made it known that such Unions will better provide a fantastic Customer Service.
It was also argued that such Unions usually offers a much higher interest rates on what you keep with them, otherwise, called deposits, not forgetting very minimal rates on loans issued out, they felt is almost incomparable to that of banks. These are just parts of what small business situated in the US stand to gain
Part of the key questions that usually emanates from new small business in dire need of survival funds can be, Are membership of Credit Unions restricted?
The answer is not far-fetched, a good number of such Unions don’t restrict membership but has to conform to certain norms guiding the operation of such union, a very good example is limiting membership to a certain bond that should be clear to all, known as Field of Membership (FOM). Membership is usually founded among those living in specific areas or a particular line of trade or investment. All in all, Consumer Credit Union have contributed immensely to the development of small businesses in America
Ranked 25th largest in America, this bank is unarguably one of the numerous banks that continued to take survival of small businesses seriously, they are so concerned that they allocate a substantial part of their annual earnings to their expansion. KeyBank is a subsidiary of KeyCorp, it had its headquarter in Cleveland, seen as the real deal in the entirety city of Ohio, its origin dates back to when it was known as Commercial Bank of Albany, New York in 1825. Its potential customers range from retail traders to operators of small business outlets, not forgetting the big time investors and corporate bodies.
Among its wide range of service also includes operation of checking account holders, credit cards operations, insurance and loans of varying degrees
Its branches cuts across major cities in the United States, among the notable ones are; New Jersey, New York, Florida, Illinois, Iowa, Maine, Maryland, Delaware, Connecticut, Colorado, Washington DC, Virginia, Alaska, Oregon, Ohio, Pennsylvania, Idaho, Indiana, Rhode Island, Utah, Texas and a list of others. It’s on record that the bank has 1,197 branches and over 1,572 ATMs in the cities listed above
Small businesses have never had it so good, no thanks to the wonderful services they enjoyed from PNB, it has been there for them and never relented over the years. History has it that the bank is a merger and coming together of two banks based in Pennsylvania, it all happened in 1983, the banks are Pittsburgh National Corporation and Provident National Corporation
Seen as one of the finest when it comes to checking, the bank made it a priority that small businesses had it smooth when it comes to clearing cheques and the likes. As at the last count, the bank has locations at about 2,481 points scattered across the US, with year 2017 projection estimating its staff strength to be 52,906. Its headquarter is situated at PNC Plaza, Pittsburgh, its total asset was pegged at US$380.768 billion, as at end of year 2017
The tower housing its headquarter was actually bought and later worked on to make for a spacious size for the gigantic tower, it can be easily located around fifth Avenue from one end and also from Wood street, from another end. Its height is estimated to be in the region of about 800,000 square feet (about 74,000m), it stood close to 33 stories (roughly 545 feet tall)
Having its headquarter in Atlanta, the bank is quoted to be a principal subsidiary of SunTrust Inc, it’s on record that its most direct corporate parent came into being in 1891. It has over 1,400 branches as of September 2016, with over 2,160 ATMs scattered across key States in the South Eastern axis, not leaving out Washington DC.
Also seen as one of the major backbone of small business enterprise in America, the bank main operations revolves around deposits, involvement in trust and major investments, credit cards sorting at various level, involvement in mortgage banking and similar trends, massive lending targeted at key investment drive as presented by individuals and corporate concerns, with wealth management also as part of its key services.
The bank is also considered as being one of the largest in modern day banking operations in America, its staff strength as at 2013 was put around 24,000. It battled a libel suit in 2014 based on some allegations that deals on shoddy handling of mortgage issues, the bank was compelled to pay $1.5 billion, a settlement was eventually arrived at and it ended up paying $968 million to the United States Government. It has been able to bounce back from that issue and also emerged as one of the top 20 banks in America
It’s also on record that SunTrust made it known its taking over BB&T for a whooping $28 billion, this occurred in year 2019, its revolves around an all-stock deals, thereby creating for the sixth largest lender in the history of American Banking. The deal eventually ended in December 2019, a particular trust firm known as Trust Financial Corporation came into being. Operations now went on separately but their operating systems remained merged.
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Known to be a subsidiary of Spanish Multinationals Banco Bilbao that was since the year 2007 and it has continued to pride itself among the leading banks spearheading the survival, growth and expansion of the operations of small businesses in the United States. Having its corporate headquarter in Birmingham, Alabama, its major point of operation are easily found in major cities of the US, they include; Colorado, Florida, California, Alabama, New-Mexico, Texas.
The bank was rated 39th largest as of June 2020, talking of its total assets, it pride itself as having one of the strongest financial base. Its franchise is easily traceable to its naming rights to the popular BBVA Stadium, which can easily be found at a soccer venue in Houston. It has been the major sponsor of the Birmingham Bowl, a spectacular football game held annually in the city of Birmingham