Holiday Closure: Labor Day – Monday, September 7, 2026
Community Initiatives: See what donation drives are happening near you on our Community Calendar. View details →
Holiday Closure: Labor Day – Monday, September 7, 2026
Community Initiatives: See what donation drives are happening near you on our Community Calendar. View details →
Entrepreneurs wear all the hats – managing every aspect of their business from customer service to human resources. An important, yet infrequent, responsibility is finding a lending partner and securing business financing.
Time after time, I’ve seen our local business owners achieve great heights. In certain situations, it’s against the odds, which makes it even more exciting to witness. I’m continually impressed by the strength, decision-making and leadership of our community’s small business owners.
As you navigate the choppy waters of entrepreneurship, it’s important to understand who to turn to for small business loans – especially for when you need them most.
Twin Cities Business Magazine recently invited me to share my thoughts on securing Small Business Administration (SBA) and conventional loans. I then developed a detailed resource outlining the steps I recommend you take personally before you pursue small business financing. Start there. Read Finding a Lending Partner – Part I first.
Now, let’s talk about what you need to pay attention to when selecting a lending partner.
We certainly don't expect any customers to know loan programs inside and out - that's our job as lenders - but we do encourage people to explore both conventional and small business financing offerings so you can come prepared with good questions.
If you're a new business owner, you'll likely want an SBA 7(a) loan for operating expenses or an SBA 504 loan for commercial real estate. Try to learn the basics of these programs so you understand your responsibilities as a borrower - or get in touch with questions.
Interest rates and loan terms can vary significantly among lenders. Compare multiple offers to understand the prevailing market rates and find a lender that offers competitive terms tailored to your financial situation. Pay attention to factors such as fixed vs. variable rates, repayment schedules, and prepayment penalties and prepare any questions.
Different lenders specialize in various types of commercial loans. Some may focus on real estate financing, while others excel in equipment loans or working capital financing. Research potential lending partners to identify their areas of expertise and whether they have experience working with businesses similar to yours. You'll want the best possible person to help you!
While you're at it, search the web or ask around to learn about the lender's reputation. A lender's reputation and track record are vital indicators of their reliability and trustworthiness. Look for reviews, testimonials, and ratings from other business owners who have worked with the lender.
It’s important to interview your lender to ensure they’re the best person for the job. Ask them about recently completed deals, especially if they’ve worked through scenarios similar to yours. Question how they handle challenges, and how the underwriting process will work. Learn about their loan programs and related terms. Discuss your communication expectations and document a plan of how you want the process handled. All these are critical to ensure you have an efficient and positive experience.
Feel free to explore questions that you aren’t quite sure relate to the lending process – at the very least it’ll point you in the right direction. They can help you understand financial statements, explore investor opportunities, identify potential risks, and make informed decisions about your business. Ask about cash flow management options, or explore cost-reduction strategies with them. Discuss their community connections and obtain referrals for critical services and support you’ll need to get the business up and running. Discover business banking products meant to support you day-to-day.
Throughout the years, we’ve had customers come to us after they became disappointed in working with other banks. They’ve often spent months of time preparing for financing to be turned down late in the game with little insight into why. It’ll be important that you and the lender are both informed.
That doesn’t mean that a loan can’t be created if you don’t align with those recommendations above – you and your lender will just have to get creative.
And while you could work through these items one by one with your lender, we recommend you take time to think these things through before discussing financing, as your final lending package may hinge on one of these items, and you’ll want to find that out earlier rather than later. Discipline is key to ensuring the loan process is a successful and positive endeavor for you.
We’ve been around for more than 105 years, and we’ve seen what can go wrong. Through no fault of their own, many business owners face the financing process without a solid understanding of how it works. While it’s each lender’s responsibility to educate their customers, we find the most successful way to secure a conventional or Small Business Administration (SBA) loan is to educate yourself.
Our bank is committed to providing the agility of a small bank and the exceptional customer service you deserve. Even if you’re considering other banking options, we encourage you to reach out and ask any questions you may have. Our dedication to community service extends to all, whether you’re a current customer or not. We’ve been offering this service for years and will continue for many more. Regardless of your banking institution, we’re always here to provide answers and honest feedback. Choosing the right banking partner can equip your small business with a wealth of knowledge and expertise, supporting your business as it flourishes and expands.
21st Century Bank proudly provides valuable resources for our customers and community. Our exhaustive list of resources includes instructions for:
If you have questions, we welcome you to contact us. We are glad to be of service!
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