South Central Bank is an experienced small business lender, and is able to offer a variety of loans for your financial needs. Our goal is a long term relationship. We want to keep your borrowing costs reasonable and your payments comfortable. We provide financing for existing and new businesses for real estate needs, new equipment purchases, receivables and inventory funding, and expansion into new products or market areas. We can help with your import of goods and equipment, and with your export sales.

Small Business Administration (SBA) Loans

Preferred Lender Program

Due to our good lending record, South Central Bank was appointed many years ago as one of the first “Preferred Lenders” in Northern Illinois for 7(a) loans, the most popular SBA loan program. SBA loans suit a variety of transactions for business customers who are seeking 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 the delegated authority to underwrite 7(a) term loans up to $5 Million.

SBA 7(a) 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

Application Checklist:

  • Provide Profit & Loss and Balance Sheet Statements — current within 180 days of Application
  • Provide 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 signed personal and business Federal Income Tax Returns of all Principal Owners for previous three years
  • Provide personal resumes of each Principal Owner
  • Provide a brief history of the business and its challenges. Include an explanation of why the SBA loan is needed and how it will help the business
  • Provide proof of Business Lease that covers the term of the loan
  • If Purchasing an Existing Business, provide the following:

    • Current balance sheet and P&L statement of business to be purchased.
    • Previous two years of Federal Income Tax Returns of the business
    • Proposed Bill of Sale including Terms of Sale
    • Asking price with schedule of inventory, machinery and equipment, furniture and fixtures
SBA Express Loans & Lines of Credit

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

SBA 504 Loans

An SBA 504 loan program is a separate, frequently used loan program available for financing projects 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:

  1. 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.
  2. 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.
  3. 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.

Application Checklist:

  • Provide Profit & Loss and Balance Sheet Statements — current within 180 days of Application
  • Provide 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 signed personal and business Federal Income Tax Returns of all Principal Owners for previous three years
  • Provide personal resumes of each Principal Owner
  • Provide a brief history of the business and its challenges. Include an explanation of why the SBA loan is needed and how it will help the business
  • Provide proof of Business Lease that covers the term of the loan
  • Project cost documents—detailing entire project
  • If Purchasing an Existing Business, provide the following:

    • Current balance sheet and P&L statement of business to be purchased.
    • Previous two years of Federal Income Tax Returns of the business
    • Proposed Bill of Sale including Terms of Sale
    • Asking price with schedule of inventory, machinery and equipment, furniture and fixtures