Starting a business or expanding one can be an exciting journey. But we know securing the money to do this can be an overwhelming process.
That's why Entrepreneur teamed up with www.MultiFunding.com to launch Entrepreneur Business Loan Search - a straightforward and time-saving tool designed to help you discover which banks are lending to small business in your community. MultiFunding, a Pennsylvania-based loan-advisory firm, uses data that banks submit quarterly to the FDIC. MultiFunding relies on an objective system that identifies which banks have shown a track record of small-business lending.
How Does It Work?
For many small-business owners, the search for capital starts with walking into a local bank branch and discussing financing needs. On Entrepreneur Small-Business Loan Search, you can search by zip code to find and evaluate banks in your community. The tool generates a list of local results as well as an estimate of small-business loan balances held at each branch. A color key categorizes banks into three performance brackets:
What Banks Are Included?
A bank must have at least $100,000,000 of domestic deposits and at least $25,000,000 of small-business loans on their books. Finally, the bank must file a quarterly call report with the FDIC. For a bank branch to be included in must have a retail component.
How Does MultiFunding Define Small-Business Loans?
For the purposes of this tool, MultiFunding uses all business loans reported to the FDIC with balances between $100,000 and $1,000,000.
MultiFunding excludes loans less than $100,000 from the system. As of December 31, 2013, the "small-business loans" less than $100,000 averaged just $8,559.28. When MultiFunding analysts looked at the big banks (deposit bases over $10 billion), this figure dropped to $6,530.38. This number seemed to be on par with a credit card loan and not a small-business bank loan, according to MultiFunding experts.
What Is MultiFunding's Data-Based Method for Evaluating Banks?
The firm uses FDIC data and divides (1) the total dollar value of loans made by a bank between $100,000 and $1,000,000 by (2) the total amount of retail branches of the bank. This equation generates MultiFunding's small-business bank ranking. The median ranking as of September 30th, 2014 is $8,989,222.
A note from MultiFunding: The banking data is based on past loan values and deposit values. It does not take into consideration the current performance of any bank, or other data provided or actions taken by the FDIC. Therefore, we recommend that you verify the current standing of banks on this list FDIC Failed Bank List or using this FDIC Bank Search Tool.
One more thing - a bank with a large amount of small-business loans doesn't mean that the bank is going to give you a loan. It means that this is a good place for you to start. To get a loan anywhere, the bank will consider your credit score, collateral and cash flow.
Still have questions? Contact us here.