Everything You Need to Know About KeyBank Business Loans

The Ultimate Guide to KeyBank Business Loans

If you’re looking for small business financing, you’re probably looking at many bank options to see which is the right bank for you. KeyBank is one of those options, offering a robust menu of loan products.

If you’re interested in what KeyBank business loans have to offer, we’ve gathered all the info you need right here. Take a look and see if KeyBank is the the right place for your small business needs today.

The Low-Down on KeyBank Business Loans

KeyBank is the primary subsidiary of KeyCorp, is a regional bank headquartered in Cleveland, Ohio.

Since 2008, KeyBank has been the only major bank based in Cleveland and is one of the largest banks in the United States. Key’s customer base spans retail, small business, corporate, and investment clients.

There are 1,217 KeyBank branches and 1,500 ATMs, which are in Alaska, Colorado, Connecticut, Florida, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Washington. KeyCorp maintains business offices in 31 states.

KeyBank has a long track record in banking, having been in business since 1929. They are ranked 479th on the Fortune 500 list.

KeyBank’s established nature is a certainly an appeal for business owners. But what business financing options do they have to offer, and how much can this bank loan you for your business? Here’s what you need to know.

The Types of KeyBank Business Loans

When your business needs funds to grow, KeyBank has plenty of options. KeyBank offers several business loans to help meet your particular financial situation.

Whether you require a one-time disbursement of funds for general growth, or if your need is specific, KeyBank offers small business term loans and Small Business Administration (SBA) loans, as well as business equipment loans, commercial vehicle loans, and business mortgage loans, and business lines of credit.

KeyBank is a SBA Preferred Lender and received the 2012 SBA Large 7(a) Lender of the Year award.

KeyBank SBA Loans

You can drive your business with SBA financing from KeyBank, a Top Ten SBA 7(a) Lender in the Nation for over 20 years.

As part of their commitment to support businesses in their communities, they have invested in a team of SBA specialists in local offices with closing and credit teams dedicated to SBA loans, all to help simplify the loan process for clients.

Small Business Administration (SBA) loan programs can provide long or short term working capital needs, fund purchases such as land, buildings or equipment, and drive growth—to name a few.

As a leading SBA Preferred Lender, you can work with KeyBank’s knowledgeable Relationship Managers and SBA Specialists work in partnership to help you select options that are right for your business needs. (Check out Chase SBA loans, another top SBA lender, for alternatives.)

See below for a breakdown of options and the info you need about all KeyBank business loans:

  • SBA 7(a) Business Loans: The most common SBA loan, this program offers up to $5,000,000 for a variety of financing needs, with longer terms and lower collateral requirements than conventional lending.
  • SBA 504 Loans: Designed for a growing business that needs a long-term fixed rate loan for a major acquisition, the projects range from $100,000 to $12,000,000 depending on business type.
  • Working Capital CAPline: CAPlines fulfill short-term needs such as inventory, receivables, or consolidating debt with this revolving credit line up to $1,000,000.
  • SBA Express: SBA Express loans are fast-expediting loans of up to $350,000 provide fixed-asset purchase power, debt consolidation, or working capital.
  • SBA International Trade Loans: Up to $5,000,000 to finance fixed assets, including real estate, and working capital to help businesses expand into international markets.
  • SBA Export Express: These loans support export development with a term loan or a revolving line of credit up to $500,000.
  • 7(a) Small Loans: These KeyBank SBA loans are targeted for smaller requests, allowing for an expedited and streamlined application process. Term loans up to $350,000.

Qualifying for an SBA Loan with KeyBank

Is your business a good fit for a Small Business Administration loan? Different industries carry different standards and qualification varies year to year. An SBA specialist can give you more specific guidance for your unique needs, but these are a few basics on the parameters for qualifying for an SBA loan.

A business must meet certain qualifications for a small business loan consideration from the SBA. The SBA defines a small business as one that is independently owned and operated, is not dominant in its field, is for-profit and meets SBA employment or sales standards.

  • Size Standard Qualifications: To be eligible for the 7(a) and 504 loan programs a business cannot have a net worth that exceeds $15 million and an average net income of greater than $5 million over the past two years.
  • Small Business Characteristic Qualifications: Owners with good character and strong management skills, business net worth consistent with industry averages, ability to repay based on historical cash flow, and reasonable collateral.

Applying to an SBA Loan from KeyBank

Think you have what it takes to qualify for these KeyBank business loans? Then you should take a shot at applying.

Here’s the information that you’ll need to provide on a KeyBank SBA loan application (or any SBA loan application, for that matter).

(And if you’re interested in applying for a an SBA loan through KeyBank see the KeyBank SBA Loan Kit here.)

  • Personal and business tax returns
  • Business financial statements for three past years
  • Current business financial statement
  • Aging of accounts receivable and payable
  • Articles of Incorporation and Bylaws
  • Personal tax return from prior three years
  • Current personal financial statements from all principals

Additional Types of KeyBank Business Loans

KeyBank Term Loans

KeyBank Business Term Loans offer flexible terms with competitive interest rates and are designed to cover long-term financing needs.

Term loans are generally best when you need a lump sum loan to cover a large, one-off expense that you know will general revenue for your business.

These KeyBank business loans are great for expanding your business or consolidating expensive debt with Business Term Loans. Here’s what KeyBank Business term loans have to offer:

  • Flexible terms available with competitive interest rates
  • Fixed monthly payments help you manage your budget
  • Fast approvals allow for quicker availability of proceeds
  • Cover long-term expenditures while preserving your own funds and maintaining the availability on your line of credit
  • Worry-free banking with automatic payment deduction

KeyBank Equipment Financing

KeyBank can offer you the financing you need to purchase business equipment. Get help purchasing the equipment you need today—with KeyBank you can take advantage of deferring the principal payments for six months. Here’s what else KeyBank Business Equipment Loans have to offer:

  • Pay interest only for the first six months of the loan term
  • At the end of six months, your business will be billed principal and interest payments, amortized over the remaining term of the loan
  • Choose a fixed or variable interest rate
  • Loan term can be up to seven years; minimum size is $10,000 and maximum is dependent on credit review
  • Loan proceeds must be fully disbursed at closing; no multiple draws are allowed

Unfortunately, the loan cannot be used as a construction business loan, or for real estate purchases or debt consolidation. If you need a loan for that purpose, it’s best to try for an SBA Loan.

Also, these KeyBank business loans can’t be used with Small Business Association Guaranteed Loans.

Check My Equipment Financing Options

KeyBank Business Mortgage Loans

If you’d like to purchase or refinance commercial real estate and have the flexibility to choose the interest rate type that is best for you, KeyBank may have financing options for you in the form of business mortgage loans.

Here’s what KeyBank Business Mortgage Loans have to offer:

  • Fixed, adjustable and variable interest rate options
  • Loans up to 20 years in maturity
  • Amortizations up to 20 years
  • Minimum size of $10,000
  • Loan proceeds must be fully disbursed at closing, no multiple draws are allowed

KeyBank Business Lines of Credit

Many people use lines of credit to take their business to the next level, such as expanding internationally or adding significant new manufacturing capabilities.

However, they’re also great financing products if you need flexibility in the capital. A business line of credit works especially well as a back-pocket option when you need to smooth out cash flow when expenses come up.

KeyBank offers multiple ways to structure business lines of credit, including:

  • A one year line structured to meet your short term working capital needs on a revolving basis.
  • A multi-year commitment to fund your business that will provide the comfort that your bank can meet longer term capital needs to finance your growth.

KeyBank offers a variety of different business lines of credit, including a Responsive line of credit (for working capital and cash flow needs), a business equity line of credit (to tap into the equity within your commercial real estate), and a home equity line of credit (that helps you get capital with your home as collateral).

Check My Line of Credit Options

KeyBank Business Checking Accounts

Loans aren’t the only service provided to businesses at KeyBank. KeyBank business checking accounts are specialized to support various cash flow strategies with reliable, robust and secure online business checking platform and bill pay.

Opening a business checking account with KeyBank can also gain you access to discounts on loans and lines of credit, access to more than 1,500 ATM locations, and waived monthly fees when minimum requirements are met.

See below for KeyBank’s business checking account types to see if one may be a good fit for you, and learn more about them here.

    Key Business Reward Checking

    A premier non-interest-bearing business account that rewards you with exclusive discounts on products and services valued at nearly $4,000.

    KeyBank Basic Business Checking

    A basic non-interest-bearing bank account tailored for businesses with a low balance and low monthly volume of transactions.

    KeyBank Business Interest Checking

    An interest-bearing business bank account for clients maintaining moderate balances and transactions.

    Commercial Transactions Account

    An analyzed demand deposit account that uses balances to offset monthly service fees.

KeyBank Small Business Loans for Women: Key4Women

KeyBank has a history of championing women in business, financing women-owned businesses for more than fifty years.

Founded in 2005, Key4Women is a nationwide community of entrepreneurial and executive business women brought together by KeyBank to help gain access to business capital, customized financial services and advice from a dedicated team, intellectual resources on a variety of topics, and networking opportunities.

The Key4Women program is available to business owners who bank with Key, and there is no cost to join. If anything, it’s a great way to connect with other female entrepreneurs, if not find KeyBank business loans.

You can join Key4Women by registering online.

The Pros and Cons of KeyBank Business Loans

Now that you have a basic understand of what KeyBank has to offer in terms of business loan products, it’s time to make the decision on whether or not these bank business loans are right for you.

The Pros

Here are the advantages to consider before working with this bank.

    Loan Variety

    KeyBank offers a wide variety of loans, at least as far as traditional banks go. This means you’ll have more options to consider when working with their specialists, whether you have short or long-term financial needs.

    Potential Reduced Rate

    KeyBank business loans offer reduced rates for automatic payments on products. Customers can get a 0.25 percent rate reduction off of the interest rate with this feature. It goes without saying that this could save you a good amount of money.

    Online Education

    KeyBank offers online education that can be invaluable for a business owner growing their companies. KeyBank’s website offers businesses the Financial Tools & Resources section with calculators to help determine return on investments, cash flow and capital requirements, as well as checklists of required information you will need when you apply for loans.

    SBA Preferred Lender

    KeyBank is an SBA preferred lender. For obvious reasons, this is a plus when attempting to apply for an SBA loan.

The Cons

Here are the disadvantages you need to weigh before working with this bank.

    Higher Fees Than Most

    To start, KeyBank charges an $86 documentation fee as part of the processing requirement for all term loans. Then, fees range anywhere from $250 – $1,500 depending on the loan amount.

    No Online Application

    While this is typical for most large loans from banks, smaller loans offered could have online applications to streamline the process, as other lenders have done. As it stands, businesses can research types of loans on KeyBank’s website, but they must call the bank or visit one of its branches in order to apply.

    Not Available In All States

    KeyBank only offers loans to consumers and businesses in 15 states, greatly limiting the customer base and expansion potential for your business.

Frequently Asked Questions

The Bottom Line

KeyBank provides a wide variety of types of loans, but their fees are relatively high.

They also aren’t the most streamlined bank to work with, and are not the most accessible in terms of both digital applications and geographic locale.

However, certain benefits, like reduced rates for automatic payments, could outweigh the detractors. KeyBank is still a large bank, so it might be hard to qualify. Be sure to compare all your options before making a decision on what type of business loan to move forward with. Check out all the bank loan alternatives out there, too, like Chase small business loans, Wells Fargo business loans, or TD Bank business loans. All are great options worth comparing to KeyBank business loans before you sign on the dotted line.

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Vice President and Founding Editor at Fundera

Meredith Wood

Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email: meredith@fundera.com.
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