Value capital funding

Blog

Home > Blog > Opening Doors: Eligibility Requirements for FDIC Bank Term Loans
Eligibility Requirements for FDIC Bank Term Loans

BY Value Capital Funding

January 24, 2024

Opening Doors: Eligibility Requirements for FDIC Bank Term Loans

In the dynamic world of business, access to capital can be the difference between success and stagnation. For many small and medium-sized businesses (SMBs), traditional bank loans can be out of reach due to stringent eligibility requirements. However, FDIC bank term loans offer a viable alternative, providing SMBs with flexible financing solutions to meet their growth and operational needs.  Importantly, many business owners also use these vehicles to help with MCA debt refinancing.

What Are FDIC Bank Term Loans?

FDIC Bank Term Loans are generally unsecured loans backed by the Federal Deposit Insurance Corporation (FDIC), a government agency that insures deposits at commercial banks. This backing provides borrowers with peace of mind, knowing that their loans are protected in the event of unforeseen circumstances. Most importantly, being heavily regulated, FDIC bank term loan borrowers are assured of fair and competitive terms.  FDIC Bank Term Loans offer a range of benefits, including:

  • Competitive interest rates
  • Flexible terms and repayment options
  • Streamlined application process

The Importance of Understanding Eligibility Criteria

When applying for any type of loan, it’s crucial to understand the eligibility requirements. These criteria ensure that lenders can responsibly assess the creditworthiness of borrowers and make informed lending decisions. By meeting the eligibility requirements, businesses demonstrate their financial stability and increase their chances of securing funding.

Basic Eligibility Requirements

To qualify for an FDIC Bank Term Loan, businesses must typically meet the following basic eligibility criteria:

  • Credit score: A good credit score is essential for obtaining an FDIC Bank Term Loan. Lenders typically look for credit scores in the 680 or higher range.
  • Time in business: Businesses must have been operating for at least two years to be eligible for an FDIC Bank Term Loan.
  • Annual revenues: Businesses must have a minimum annual revenue of $250,000 or higher to qualify for an FDIC Bank Term Loan.
  • Eligible states: FDIC Bank Term Loans are available to businesses located in all 50 states.

Beyond the Basics: Special Considerations

While the basic eligibility requirements provide a general guideline, lenders may consider additional factors during the assessment process. These factors may include:

  • Industry restrictions: Some lenders may have restrictions on the industries they serve. It’s important to check with potential lenders to ensure your business falls within their acceptable industries.
  • Personal guarantees: In some cases, lenders may require personal guarantees from business owners. This means that the owner’s personal assets could be at risk if the business defaults on the loan.
  • Collateral requirements (if any): Some FDIC Bank Term Loans may require collateral, such as real estate or equipment, to secure the loan.

How Value Capital Funding Streamlines Eligibility

Value Capital Funding understands the challenges faced by SMBs in accessing traditional financing. That’s why we’ve streamlined our eligibility requirements to make our FDIC Bank Term Loans more accessible to a wider range of businesses. We carefully assess each application based on its unique circumstances, working with businesses to find solutions that meet their specific needs.  When working with Value Capital Funding and their bank lending platform for FDIC bank term loan financing or refinancing, just 1 application package gets your loan in front of dozens and dozens of FDIC banks and nationally insured credit unions nationwide. 

Successfully Navigate the Application Process

To successfully navigate the loan application process, follow these steps:

  1. Understand your financial situation: Gather your financial documents, including tax returns, bank statements, and profit and loss statements. This will help you present a clear picture of your business’s financial health.
  2. Choose a reputable lender: Research and select a lender with a proven track record of providing financing to SMBs. Read reviews and compare interest rates and terms to find the best option for your business.
  3. Prepare your application thoroughly: Complete the application form accurately and provide all required documentation. Be prepared to answer any questions the lender may have about your business.
  4. Be proactive and communicative: Stay in touch with your lender throughout the application process. Respond promptly to any requests for additional information and address any concerns they may raise.

Unlock Your Business’s Financial Potential with Value Capital Funding

At Value Capital Funding, we’re committed to helping SMBs achieve their financial goals. Our FDIC Bank Term Loans provide businesses with the resources they need to expand their operations, invest in growth initiatives, and overcome cash flow challenges. If you’re looking for an experienced financing partner, contact us today to explore our FDIC Bank Term Loan options and how we can help your business thrive.