If you’re a well-qualified business owner seeking funding, then one of your very best options will be securing a business loan through a regional bank. And lucky for business owners operating out of Oregon, Washington, California, Nevada, and Idaho, a regional bank that operates in their states—Umpqua Bank—is one of the top small business bank lenders in the nation. Interested in learning more about Umpqua Bank business loans?
We thought you might be, so we’ve compiled a guide to the ins and out of your Umpqua Bank business loan options. Here are the details on the six types of Umpqua Bank business loans available, plus two top alternatives.
- SBA loans: 7(a), 504/CDC loans, and USDA loans
- Term loans: $10,000-$750,000 with rates starting at 5.50%
- Real estate loans: $25,000-$750,000 with rates starting at 5.50%
- Lines of credit:$10,000-$500,000 with rates starting at 6.40%
- Equipment leasing and financing: $5,000-$15 million
- Vehicle loans: Up to 100% of cost with rates starting at 3.40%
Umpqua Bank Business Loans Options
If you’re interested in securing funding through an Umpqua Bank small business loan, then you’ll have six different products to look into. Even within these six forms of Umpqua Bank business loans, there will be a variety of structures for you to opt for. Long story short, Umpqua Bank offers business loans in lots of shapes and sizes. As such, we’re going to break them down by product, so you can get an idea of what each of the Umpqua Bank business loans would entail for your business:
Of all the lending they do, this bank is perhaps most known for its Umpqua Bank SBA lending record. In 2017 alone, Umpqua Bank provided $117,259,100 in SBA 7(a) loans. Plus, Umpqua Bank is a part of the SBA Preferred Lender program, which means quicker funding for qualified business owners.
Umpqua Bank lends through two SBA programs—the SBA 7(a) loan program and the SBA 504/CDC loan program. Additionally, though they aren’t exactly SBA loans, Umpqua Bank also offers government small business loans through the USDA loan program.
Umpqua bank business loans also come in the form of more traditional term loans. These Umpqua Bank business loans are lump sums ranging in size from $10,000 all the way up to $750,000. They come with fixed interest that start as low as 5.50%. And if you set up auto-pay from your Umpqua business account for your loan bills, you might be eligible for a rate discount. Plus, the repayment term on this form of Umpqua Bank business loan can stretch as long as seven years.
There are, of course, a few things worth noting about Umpqua Bank business term loans. Perhaps most notably, they’re going to require some form of collateral to secure them. Additionally, you’ll need to pay an origination fee of 0.50% of your loan amount to fund with a Umpqua Bank term loan. For context, that’s a pretty small origination fee when measured against the industry standard. That said, there are some lenders out there that won’t charge any origination fee at all. Additionally, if you use a third party to access this type of Umpqua Bank business loan, then you might have to cover that third party’s closing costs.
Real Estate Loans
Another option in the suite of Umpqua Bank business loans is their commercial real estate loan. If you’re hoping to invest in some real estate for your business, then this form of Umpqua Bank business funding could be a top option. Qualifying business owners can access $25,000 to $750,000 through Umpqua Bank real estate loans for business.
Plus, rates attached to these loans will be as low as 5.19% and will only adjust every five years—providing a happy medium between fixed and variable interest. Again, you could qualify for a rate discount, as well, if you set up auto-pay with an Umpqua Bank business bank account.
Umpqua Bank business real estate loans come with come with two different repayment schedule options. For a more straightforward choice, Umpqua Bank offers a real estate loan with a 15-year fully amortized repayment schedule. Alternatively, they also offer a business real estate loan with a 25-year amortization with a 10-year maturity and a balloon payment.
Be sure to note that this type of Umpqua Bank business loan also comes with a small origination fee of 0.50% that you’ll need to factor into the cost of capital if you end up opting for this form of funding.
Lines of Credit
For more flexible funding than Umpqua Bank SBA loans, term loans, or real estate loans can offer, we suggest you look into this bank’s various business line of credit options.
There are actually three types of business lines of credit that Umpqua Bank offers, all with different repayment details. First, you have the unsecured business line of credit, which won’t require any collateral. They offer credit limits from $10,000 to $250,000 and rates starting as low as 7.60%.
Or, if you have collateral to offer up, then you also have the option of a secured business lines of credit from Umpqua Bank. This business line of credit can range from $25,000 to $500,00 with repayment terms as long as three years, with no prepayment penalty. Rates for the secured business line of credit are as low as 6.40% and come with the option of securing your debt with a CD or commercial real estate.
Equipment Leasing and Financing
Through their partner Financial Pacific, Umpqua Bank also offers business loans in the form of equipment leasing and financing. Umpqua Bank business loans for equipment can range anywhere from $5,000 all the way up to $15 million. Unfortunately, they don’t provide much more information on this Umpqua Bank business option, so you’ll need to call or visit a branch to learn more.
Business Vehicle Loans
The sixth and final type of Umpqua Bank business loans you’ll have to choose from is their business vehicle loans. Umpqua Bank business loans for brand-new vehicles offer up to 100% of the invoice amount, with terms from 24 to 84 months, rates as low as 3.40%, and an $100 origination fee.
An Umpqua Bank business loan for a used vehicle of less than 10 model years old offers 100% of the NADA clean trade in value, with terms from 24 to 72 months, rates as low as 3.65%, and an $100 origination fee.
Both forms of Umpqua Bank business loans for vehicles are fully amortized and come with fixed interest rates over the life of the loan.
Top Alternatives to Umpqua Bank Business Loans
Umpqua Bank business loans certainly look good on paper—their rates and terms are actually some of the best in the game. Plus, they’re remarkably transparent with their funding options, which is more than a lot of banks out there can say.
That said, if you start to apply for one of these Umpqua Bank business loans, you’ll start to understand why exactly they might not be the best fit for your business. When compared to more tech-enabled options, Umpqua Bank small business loans will be pretty slow to fund. Even more, they’re hard to qualify for. Even if you are based in one of the five states that Umpqua Bank operates in, you might not be able to qualify for Umpqua Bank business loans. Only the most qualified small businesses are able to qualify for bank funding, and Umpqua Bank is no exception.
If you’re hoping to access business funding fast, or you don’t have a perfect credit profile, then we suggest you look into these two top alternatives to Umpqua Bank business loans:
Another top alternative to Umpqua Bank business loans is Fundation. Fundation offers both term loans and business lines of credit that can range in size from $20,000 to $350,000. Whether you’re borrowing through a Fundation loan or line of credit, you’ll have anywhere from one to four years to repay your debt, and your interest rate will be anywhere from 7.9% to 28.9%.
To be eligible for Fundation business funding, you’ll need at least $100,000 in annual revenue, personal credit of at least 660, and at least a year in business. And if you qualify, Fundation can fund your business in as little as a single day.
Finally, if you’re interested in Umpqua Bank business loans for equipment or vehicles, then we suggest you look into Balboa Capital. This online lender offers equipment financing and leasing that works much like Umpqua Bank’s business loans for equipment. Balboa Capital equipment financing can range from $2,000 all the way up to $500,000 with repayment terms from two to five years long. Even better, interest rates on Balboa Capital equipment financing can be as low as 3.9%.
If you’re working with annual revenue of at least $100,000, personal credit of at least 600, and at least a year in business, then you’ll be eligible for this Umpqua Bank alternative. And, above all, be sure to note that Balboa Capital can provide you with equipment financing the same day you apply if you’re able to move quick providing the required application documents.
The Bottom Line
There you have it—the ins, outs, ups, and downs of all six types of Umpqua Bank business loans. Keep in mind that although one of these Umpqua Bank business funding options might seem like the perfect fit for your business, the bank’s underwriters might not agree. Because bank loans for small business are so tough to qualify for—and take so long to fund—be sure to look into Umpqua Bank business loan alternatives to shop more accessible options, just in case.