As the U.S. economy continues on the road to recovery and many businesses are pondering expansion plans, now may be the perfect time for small business owners to access capital* and invest in the future of their businesses. We asked Jana Benton, Senior Vice President and State Portfolio Small Business Manager at Nevada State Bank, to educate us on the current status of capital needs for small businesses, and how Nevada State Bank is positioned to help.
Benton said she is currently seeing small business owners requesting loans for one of the following reasons:
1) Current low rates and the fear of future interest rate increases;
2) The desire to purchase their own building or other real estate;
2) The feeling that it is an ideal time to expand their business;
3) Lease requests for equipment and loans to purchase new equipment; and
4) Desire to buy out a competing business.
Lines of credit go hand-in-hand with these loan requests, advised Benton, who explained that Nevada State Bank tends to offer lines of credit for short-term working capital needs.
Because of Nevada State Bank’s flexibility and wide range of offerings, its small business clients can receive products that fit their unique needs. “Many of our clients don’t want to put a lot down; they want a smaller out-of-pocket expense,” she explained. “We are an SBA Preferred Lender, so we are seeing a lot of 7a’s and 504’s – SBA products that can help with that. We also do conventional lending, so we can customize loan packages for our clients.”
As an SBA Preferred Lender, Nevada State Bank has demonstrated proficiency in processing and servicing loans guaranteed by the federal Small Business Administration. These guaranteed loans may offer capital to businesses that have previously had difficulty accessing capital. They often provide lower down payments, longer re-payment terms, and more flexible qualifying standards.
“We also offer conventional products for those clients who can put more money down, but may want a smaller monthly payment” Benton advised.
She explained that Nevada State Bank is also seeing more requests for equipment loans and leases, with more clients now interested in refurbishing, expanding, or upgrading their businesses. “Clients had tightened up during the recession and they were limping along. Now they have confidence in the economy and want to expand their businesses. We are seeing a lot more of this confidence factor. No longer do they have to put off buying like they did before — and they are also hiring more employees,” she said.
Benton commented that the recent changes in tax laws are spurring business clients to hire more employees, look at expanding benefits to their employees, and expand into other markets. For those reasons and many more, now is the perfect time to purchase business assets and invest in real estate or equipment, “especially since we are not sure what the future will hold. Many small business owners think rates will rise over the next few years,” she added.
“Nevada State Bank is a community-focused bank. We know our clients well. Some of our clients even have our cell phone numbers,” she said. “They have been with us a long time. We have three generations of family-owned businesses banking with us, since Nevada State Bank has been in business for nearly 60 years.”
“Right now is the time to borrow and invest in your business – the confidence of small business owners is high,” Benton concluded.
Contact your local Nevada State Bank business banker now for all of your small business’s capital needs.
*All loans subject to credit approval. Terms and conditions apply. See a banker for details.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A.