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Understanding Loans: A Guide for Mobile’s Small Businesses

For small business owners, securing a loan can be the difference between success and failure. Access to capital is crucial for growth and stability, whether you want to expand your operations or simply manage cash flow during uncertain times. 

 

Small business loans offer the financial resources to help you thrive while allowing you to retain full ownership of your company. They also build your credit history, setting the stage for future growth. At Commonwealth National Bank, we’re dedicated to helping entrepreneurs in Mobile and the Gulf Coast achieve their goals with flexible loan solutions tailored to their needs. Let’s explore everything you need to know about getting a small business loan.

Types of Business Loans Available at CNB

Different financial needs require tailored solutions. We have loan options to address a variety of business needs, whether you need to purchase equipment for your restaurant, manage cash flow for your hair salon, or make improvements to your local church. Some loans provide funding upfront, while others are disbursed as needed throughout a project. 

 

Repayment terms and eligibility requirements will vary based on the loan, ensuring flexibility for your unique circumstances. Here’s an overview of the types of loans we provide and how they can help you achieve your goals:

 

Small Business Loans

  • A general toolbox for businesses
  • Can be used for many different things, from startup costs to leasehold improvements and everything in between
  • Amount and terms vary widely

 

SBA Loans

  • Government-backed, so can be easier to obtain
  • Usually, they have better terms, like lower interest
  • Like small business loans, can be used for many purposes

Construction Loans

  • Only for building or renovating
  • Get money in stages as you build
  • Usually short-term

Commercial Real Estate Loans

  • Just for buying commercial properties
  • Often long-term, like a home mortgage
  • Amount based on the property’s value

Lines of Credit

  • Like a reusable loan
  • Borrow and repay as needed
  • Good for unexpected expenses or managing cash flow

Equipment Loans

  • Only for buying business equipment
  • The equipment itself is the guarantee
  • Loan length usually matches how long the equipment will last

Church Loans

  • Specifically for religious organizations
  • Can be used to buy, build, or repair religious buildings
  • Often have special terms for non-profit status

5 Steps to Business Financing in Mobile Made Simple

Securing a loan for your small business loan in Mobile can feel like a big step, but once you understand how it works, it’s an empowering journey toward growth and success. Here’s what to expect as you navigate the process with confidence:

  1. Define Your Goals & Assess Your Financial Health

Start by identifying how much funding you need and the purpose behind it. Whether expanding your operations, purchasing equipment, or managing cash flow, having a clear vision sets the foundation.

 

Review your business’s financial position, including revenue and credit scores. Understanding where you stand financially will help you choose the right loan and strengthen your application.

  1. Gather Essential Documents

Prepare key documents, like your business plan, financial statements, tax returns, and any additional relevant paperwork. These materials demonstrate your business’s viability and potential.

  1. Contact Commonwealth National Bank 

Choose a reputable lender, like Commonwealth National Bank, that specializes in supporting small businesses in Mobile and the Gulf Coast. Working with a local bank ensures you’ll receive personalized guidance tailored to your community. Your CNB lender will go over the different loan options to help you find the one that best meets your needs and goals.

  1. Complete Your Application & Review

Fill out the application forms with accuracy, attach all required documents, and submit your package. We’ll help you make sure your application is thorough and complete to speed up the process. Be prepared to answer follow-up questions and provide additional details as needed. 

  1. Evaluate the Offer & Access Your Funds

Once approved, your CNB loan officer will carefully review the loan terms with you to make certain they align with your business’s financial goals. Ask us for clarity on any terms you don’t understand before signing.

 

After accepting the terms, we’ll release the funds, setting you up to take the next steps toward achieving your business objectives.

Mobile’s Small Business Loan Questions, Answered.

How can I get a loan for my business—where do I start?

If you’re ready to explore loan options but aren’t sure where to begin, contact our team today. We’ll take the time to understand your needs and financial situation, answer your questions, and recommend a loan option tailored specifically to your business.

How can I get an LLC loan?

An LLC loan isn’t a separate type of loan but rather a small business loan specifically for Limited Liability Companies (“LLCs”). These loans are structured to align with the LLC’s legal setup, where the business is a separate entity from its owners. Here’s what to know:

 

  • The Difference: LLC loans are issued in the business’s name, not the individual owner’s, which aligns with the LLC’s structure.
  • Loan Types: Like other small business loans, they can be term loans, lines of credit, or equipment financing.
  • Eligibility: The criteria—credit score, revenue, and time in business—are similar to those for other small business loans.
  • Sources: They can come from banks like Commonwealth, credit unions, online lenders, or the SBA.

What can I use a business loan for?

A business loan can be used for everything from covering daily operational costs and purchasing equipment to expanding into new markets and renovating commercial property. Whether you are looking to hire new employees or expand your footprint, business loans help provide financial support for a range of entrepreneurial goals.

Secure a Loan & Unlock Your Business’s Potential Today

At Commonwealth National Bank, we make the loan process simple and stress-free with personalized guidance and fast approvals. As one of only 14 Black-owned and -operated banks in the U.S., we’re committed to empowering business owners throughout Mobile and the Gulf Coast with tailored financial solutions.

Our straightforward approach and diverse loan options ensure you get the funding you need with the support of local lenders who understand your unique goals. Ready to take the next step? Contact us today to explore financing options tailored to YOU.

Commonwealth National Bank: Where Business Dreams Take Flight in Mobile and the Gulf Coast

For nearly 50 years, Commonwealth National Bank has been fueling the growth of our community’s small businesses through customized financial options. As the only locally owned and headquartered bank in Mobile, we are guided by our mission to break financial barriers and ensure everyone has access to the resources they need to achieve their economic goals. Call us at 877-850-8100 to get started, or stop by our Toulminville or West Mobile location to speak with our experienced team.