Updates To Northwoods Bank Services Due to COVID-19


Business Loans FAQ's

We offer a variety of business loans including real estate loans, equipment loans, working capital loans, lines of credit and SBA loans.  Please visit our lending center for more information.

Terms on a loan vary, and depend on the type of loan, purpose, collateral and cash flow, and other factors.  Terms can range anywhere from 1 to 20 years, and loan to values range from 50 to 80 percent.  Please visit our lending center for more information.

Once we receive all of your information, we can typically give you an answer within 1 week.

We ask for 3 to 5 years of business and personal tax returns if you are an existing business; or a business plan, 3 to 5 years of projections and 3 to 5 years of personal tax returns if you are a new business.  We also ask for a personal financial statement and articles of organization / incorporation (if applicable).  Please visit our lending center for more information.

Although the loan is made to the business, we also analyze your personal income to make sure there are sufficient funds to cover personal living expenses and debt service.

When analyzing a business loan, we look at several factors.  First, we want to make sure that the cash flow generated from the business is sufficient to make payments on the existing and proposed debt.  We will also analyze the collateral, or have it appraised, to ensure the proposed loan will meet our loan to value requirements.  In addition to cash flow and collateral value, we will also consider how long the business has been in existence, type of business, experience of management, personal credit history and revenue and cash flow trends among other factors.

The length of time it takes to close a loan depends on the size and complexity of the loan.  Closing times can range from a couple days to a couple of weeks.

Interest rates on business loans depend on several factors including the type of loan, loan terms, cash flow and collateral value, etc.  For more information fill out our contact form or contact your business banker.

Yes, guarantee fees range from 2 to 3.5 percent of the guaranteed portion of the loan, depending on the loan size.