South Central Bank is an experienced lender to small businesses, and offers a variety of loans for your financial needs. Our goal is a long term relationship, to keep your borrowing costs reasonable, and payments comfortable. We provide financing for existing or new business real estate needs, for new equipment, fund additional receivables and inventory, and to expand into new products or market areas. We will help with your imports of goods and equipment, and with export sales.

Our commercial loan portfolio has been sound throughout recent economic distress, and so your reasonable loan request will be welcomed without consideration of a bank’s own issues. We have never altered our basic commercial credit policy since the bank was founded in 1965. If your company is good, and it is profitable, and your needs reasonable, we can provide to credit to you.

How are we better than other commercial lenders? The reason is simple, we are a reliable source of loans, with bankers that you will know for many years, and we are a part of your community. We are a privately owned bank with shareholders of your community, not publicly held ownership that changes policies each passing year. You will not tell your company story to a new banker each time you discuss a new loan. We know you, and you will know us.


Preferred Lender Program

Based on a good lending record, South Central Bank was nominated, many years ago, to be one of the first “Preferred Lenders” in Northern Illinois under 7A, the most popular SBA loan program. Many local businesses have flourished with a Small Business Administration (SBA) loan. SBA loans suit a variety of transactions when business customers would like permanent financing. Permanent financing protects businesses from issues during stressful periods when renewal of short-term funding might be a problem. South Central Bank has delegated authority to underwrite 7A term loans up to $5 Million.

SBA 7A Loans: Longer Term Small Business Financing

The concept is to encourage permanent financing for small businesses. Actual loan maturities are based on the ability to pay, the purpose of the loan proceeds, and the useful life of the assets financed. Maximum loan maturities are 25 years for business real estate, 10 years for qualified equipment loans, and 7 years for working capital.

Loans are to be collateralized

Personal guarantees of owners (20% or more of equity)

Loans amortize with monthly payments

Maximum interest rates and SBA fees are set by the SBA

SBA 7A Loan Application Checklist:

The documents we need to process your loan are listed here. We need to have all documents in our credit file before approving your loan:

  • Complete the following Personal background and Financial Statements:

Statement of Personal History Form 912

Personal Financial Statement of Owner(s)

  • Provide the following Business Financial Statements:

Income and Balance Sheet Statements – current within 90 days of Application. To include most recent 3 years complete statements.

Projected Financial Statements for 1 year or more, with explanations of assumptions.

  • Provide proof of Ownership and Affiliations by listing any other controlling business interests
  • Provide Business License or Illinois Certificate of Good Standing for Corporations
  • Provide Loan Application History
  • Provide past 3 years signed copies of personal and business Income Tax Returns
  • Provide personal resumes of each principal owner
  • Explanation of how an SBA loan will help your business by providing a Business Overview and History
  • Proof of Business Lease that covers the term of the loan
  • If Purchasing an Existing Business, provide additional list of documents needed.

SBA Express: Revolving Lines of Credit

A special 7A loan for smaller amounts up to $350,000 allowing revolving credit support from the SBA for up to seven years.

About the SBA 504 Loan Program

An SBA 504 loan program is a separate frequently used loan program available for project financing such as acquiring or constructing a new business building. The program provides low interest business financing and long-term secure rates. Flexible requirements and a strong financial partnership allows businesses to grow, secure in the knowledge of permanent financing.

There are typically three parties involved in the financing:

South Central Bank: Typically our bank will provide 50% of the project financing secured by a first mortgage, and offer a 10 year term, with longer amortizations up to 20 years.

SBA portion: Our partner will be an SBA development company who will package and secured SBA fixed rate debenture financing at low market rates for 10 or 20 years, and will have a second mortgage on your business property.

Business/Owner: Your established business will generally contribute a minimum of 10% of the project cost, with the exception of certain specialized purposes, and new businesses, which will require a 15% minimum.

SBA 504 Application Checklist:

  • 504 Purchase Application
  • Personal History SBA 904
  • Business Debt Schedule
  • Personal Data Sheet
  • Last 3 years Corporate Tax Returns
  • Interim Corporate Financial Statements (within 60 days)
  • Personal Financial Statements (all 20% owners)
  • Personal Tax Returns, last years (all 20% owners)
  • Project Cost documents – detailing entire project


Short-term funds are available under a credit line, or a revolving or short-term note, to make sure you have available cash to pay your bills, meet a special payroll need, purchase additional inventory, or support more accounts receivables due to increased sales. Additional funds for working capital or because your business is seasonal require a short term loan.

If you do not have an existing credit file at the bank, we need the following current information:

  • Most recent 3 years of financial statements/tax returns/or both

Commercial Term Loan

Finance longer term projects such as new business equipment, commercial vehicles, leasehold improvements, or general expansion with a 3, 5, 7 or sometimes 10 year loan. The term of the loan will be determined by cash flow analysis, expected profits over time, and the useful life of the purpose being financed. Repay the loan with monthly payments of principal and interest.

If you do not have an existing credit file at the bank, we need the following current information:

  • Most recent 3 years of financial statements/tax returns/or both
  • Descriptive information or invoice on equipment or project being financed


Use a long-term mortgage to finance new or additional business property, or a major business renovation. We will help you select a financing plan to reach your goal. We may assist you in purchasing an appropriate business property according to your needs. We may finance the construction of this property. Our commercial mortgage program is designed for business owner-occupied properties, but in some cases there may be additional business tenants to support the project.

To finance your business building, we will need the following current information:

  • Copy of the real estate purchase agreement for your new property
  • Real Estate Appraisal by the bank authorized appraiser
  • Environmental Report by or verified by bank authorized vendor
  • Most recent 3 years of financial statements/tax returns/or both of operating business
  • Personal Financial Statement of Owner(s)
  • Commercial Loan Application or other description of loan request

If you have any questions, please don’t hesitate to stop into a location near you, or