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RE: Main Street Lending — Small Business Term Loan · Loan Summary

Loan Summary

Small Business Term Loan.

A lump sum, fixed payment, fixed payoff date.

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— At a glance

At a glance

$25,000 to $500,000
Loan size
12 to 60 months
Term
Best for
Specific projects with a clear payback, expansion, equipment, working capital
Repayment
Fixed weekly or monthly payment, fully amortized
— What it is

What it is

A term loan is a traditional installment loan. We fund an agreed principal amount up front, and you repay it over a set term with periodic principal and interest payments. The cost of capital is expressed as an interest rate or APR, and there is a clear maturity date. The underwriter you talk to is the one who approves the file.

A Main Street term loan gives you a lump sum up front that you repay over a fixed term in regular installments. Term loans make sense when you have a specific use of funds with a predictable payback — an expansion, a buildout, an acquisition, or consolidating more expensive debt. We underwrite the file, we set the terms, and we wire the funds.

— Pros and cons

Pros and cons

Pros

  • Predictable payment makes budgeting straightforward
  • Lower cost than most short-term financing products
  • Build a payment history with Main Street that supports future deals
  • Useful for larger one-time investments

Cons

  • Underwriting is more involved than for short-term products
  • We want stronger credit and at least one year in business
  • Personal guarantee is typical
  • May include a UCC filing or specific collateral
— Documents we'll ask for

Documents we'll ask for

  • Six months of business bank statements
  • Most recent business tax return
  • Profit and loss statement and balance sheet (if available)
  • Driver license for each owner with 20 percent or more ownership
  • Debt schedule showing existing business obligations
— Common questions

Common questions

What credit score do I need for a term loan?

We want to see a personal FICO of 650 or better on most term loan files, with some flexibility down to the low 600s for owners with strong revenue and time in business.

What does the underwriting process look like?

The underwriter and credit committee sit on our side of the table, so we work the file as soon as it lands and respond as the deal moves. The same person who reviews your bank statements is the person who can approve the file.

Is collateral required?

Smaller term loans are often unsecured beyond a personal guarantee from the principal owners and a UCC-1 blanket lien on business assets. Larger requests can require specific collateral.

Can I prepay without a penalty?

Many of our term loan structures allow prepayment with interest savings. Some carry a prepayment fee or a minimum interest provision. We tell you which structure applies before you sign.

— Related products

Line of credit

A revolving credit line from Main Street you can draw from, repay, and reuse as you go.

SBA

SBA-guaranteed loans from Main Street, with longer terms and lower payments for qualifying borrowers.

Equipment

Finance trucks, machinery, kitchen equipment, medical and dental gear. The equipment secures the deal.

Signed by Main Street Lending LLC

Est. 2019 · The lender on your block

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