Small Business Lending

You do a lot to keep your small business running smoothly. That’s why Bank of the Sierra offers a wide range of lending products to help your community business grow. With the perfect loan to suit your needs, you’re able to spend more time on the important things.

EXPRESS LOAN PRODUCTS

EASY ONLINE APPLICATION
With our convenient online interface, it’s never been easier to go from inquiry, to approval, to having the funds deposited.

Bank of the Sierra offers three different express loan products to suit your needs under $250,000.

FAQS

Small Business Lending

1. Will Bank of the Sierra require collateral for my loan, if approved?

   No. All loans approved through the Small Business Lending program will be unsecured.

2. Can I apply to renew my existing Sierra Business Lines of Credit through this program?

   Please consult with your Commercial Loan Officer.

3. How long does the process take?

   • Application Completion: (including uploading required documentation): Approximately 10-15 minutes
   • Review & Decisioning: Within 1 business day of receipt of complete application
   • Documentation: Within 1 business day of receipt of items required to document loan (i.e., entity documents)
   • Boarding: Within 1 business day of receipt of items required to board loan (i.e., signed loan documents & fees)

4. Whom do I contact with questions?

   Questions from applicants and/or Bank customers can be addressed by Customer Service at 1-888-454-BANK.

5. What are the next steps when my loan is approved?

   You will be notified by phone and in writing of the approval. If any additional information is needed to move forward with drawing loan documents, a list of items will be provided. If the items needed to draw loan documents are not provided within 5 business days, a Notice of Incomplete Application letter will be mailed, allowing 30 days for the applicant to provide the information. If the information is not provided within the specified timeframe, the request will be considered withdrawn.

   Borrowers will be required to go into a Bank of the Sierra location to sign loan documents with a Commercial Loan Officer.

6. How will I be notified of a declined loan application?

   You will receive a phone call explaining the reasons for the decline. Bank of the Sierra will also follow up with a letter in the mail.

7. What information do I need to submit for a Small Business Loan?

   Complete applications will include a minimum of the following items:

   Business:

   • Business name; address; phone number; and taxpayer identification number
   • Business type
   • Business industry
   • Loan amount
   • Loan purpose
   • Number of years in business
   • Gross revenue of business; net profit/loss
   • Business assets; liabilities; net worth
   • Monthly payments on existing business loans
   • Required financial information (see below)

   Business principal(s)/guarantor(s):

   • Name(s); address(es); phone number(s); e-mail address(es) and Social Security number(s) of all business owners; regardless of ownership percentage
   • Required financial information (see below)

   Financial Information Requirements:

   Loan requests up to and including $25,000 will be decisioned based on the information stated on the loan application, and will not require financial information to be submitted.

   For loan requests in excess of $25,000, the financial information specified below will be required by the Bank to verify “stated” information on the application to calculate debt service coverage ratios.

   • Most recent 2 years complete tax returns for business entity
   • Most recent 2 years complete tax returns for all business owners, including all statements, schedules and K-1s, as applicable
   • Current business debt schedule
   • Current personal financial statement for all business owners

   Additional Requirements:

   • Business principals will be required to personally guaranty (for corporations, LLPs, LLCs); regardless of ownership percentage.
   • Opening a Bank of the Sierra Business Checking Account will be required for Sierra Reserve Lines and Sierra Business Lines to credit loan funds. Vesting of the DDA account must match the borrower’s legal name. Applicants will be required to open the business checking account in person at a BOTS branch location.
   • Appropriate entity documentation

8. Is a Small Business Loan right for me?

   The Small Business Lending program is intended for any business seeking a basic unsecured (no collateral) loan of anywhere between $1,000 to $250,000. Business entities should be in existence and operating for no less than 3 years and should be located in the Bank of the Sierra geographic footprint. If they are not located in the footprint, they must be located in the State of California and be willing to travel to a Bank of the Sierra branch location to sign the required loan documents.

9. Which business types are eligible for a small business loan?

   Applicants shall be one of the following:

   • Sole proprietors
   • Corporations
   • General partnerships
   • Limited partnerships
   • Limited liability companies
   • Limited liability partnerships

   The program does not accommodate trusts or non-profit organizations; consequently, these entity types are not eligible for the program.

10. What can I use a Small Business Loan For?

    Small Business Loans will be extended to business entities for legitimate business use (i.e., short- and long-term working capital, vehicle & equipment purchases, business overdraft protection, etc.). Unacceptable loan types include:

    • Loans for speculative purposes.
    • Loans to foreign countries, businesses or governments.
    • Loans to businesses or individuals who have a history of delinquent payments or bankruptcies.

11. How do I qualify for a Small Business Loan?

    Basic criteria and requirements to qualify for a Small Business Loan from Bank of the Sierra will appear at the top of the application. Items include, but may not be limited to: length of time in business, financial requirements, authorization to pull credit, and the signing of all loan documents in person at a Bank of the Sierra branch location.

12. Do I need to be located in the State of California to apply for a loan through this program?

    Yes. Your business must be located in the State of California. Business principals must go to a Bank of the Sierra bank location in order to sign loan documents.

13. What products are offered through Bank of the Sierra’s Express Small Business Loan program?

    Three products are offered through the Bank’s Express Small Business Loan program.

    • Sierra Business Reserve Line
      Sierra Reserve Lines are unsecured overdraft protection lines of credit. A Sierra Business Reserve Line is attached to only one Business Checking Account, which is vested in the same name as the borrower. For current rates and terms, please contact your local branch or our Customer Service Center at 1-888-4S4-BANK.
    • Sierra Business Line of Credit
      Sierra Business Lines of Credit typically provide working capital in order to support the trading cycle of the company (accounts receivable, inventory, and accounts payable). For current rates and terms, please contact your local branch or our Customer Service Center at 1-888-4S4-BANK.
    • Sierra Business Term Loans
      Term loans may be appropriate for business borrowers when there is a need for permanent working capital, typically to finance a permanent increase in accounts receivable and/or inventory. Term loans may also be used for equipment or vehicles purchased for business purposes. For current rates and terms, please contact your local branch or our Customer Service Center at 1-888-4S4-BANK.

14. Will you check my Credit Report?

    Yes. Bank of the Sierra will check the credit report for the business and will check personal credit reports for all business principals.

15. What if I don’t have all of the items needed to be submitted?

    It is best to gather all required items prior to submitting your application in order to complete the process quickly and efficiently. However, if you are unable to gather all items before application, upon review of the application a Loan Officer will contact you for the missing items.

    Bank of the Sierra will follow up by mailing a letter listing the items needed, and a date by which the items need to be provided. If the items are not provided by the letter’s expiration date, the application will be considered withdrawn.

16. Can I sign documents electronically?

    At this time, documents for Small Business Loans must be signed in person with a Commercial Loan Officer at a Bank of the Sierra branch location.

17. What entity documentation is required to be provided?

    Sole Proprietorship:

    • Fictitious name statement

    Limited Liability Company (LLC):

    • Filed articles of organization (LLC-1)
    • Operating agreement
    • LLC-12
    • Any amendments

    Partnership/Limited Liability Partnership:

    • If General Partnership (GP): filed statement of partnership authority (GP-1)
    • If Limited Partnership (LP): filed certificate of limited partnership (LP-1)
    • If Limited Liability Partnership (LLP): filed application to register an LLP (LLP-1)
    • Partnership agreement
    • Any amendments

    Corporation:

    • Filed articles of incorporation
    • Any amendments

18. How do I submit an application?

    All Small Business Loan applications and supporting documentation will be submitted electronically through a secured website, which can be accessed through Bank of the Sierra’s website.

19. If I have existing loans with Bank of the Sierra, am I eligible to apply online?

    Yes. Loans will be considered in an amount up to $250,000, even if you have existing loans with Bank of the Sierra.

20. Is my loan application request decisioned by a computer?

    All applications are reviewed and decisioned by an employee of Bank of the Sierra.

SBA (SMALL BUSINESS ADMINISTRATION) LOAN

We also offer Government-guaranteed small business loans. If your needs range between $100,000 to $5,000,000 an SBA Loan can be a great way to secure the funds you need. Let our experienced lenders guide you through the process.

Just stop by your nearest branch or give us a call at (888) 454-BANK to find out more.