🛡️ Traditional Bank & SBA Financing Programs — Legal, Detailed Breakdown

HybridFunder partners with South End Capital, a division of Stearns Bank, N.A. (“Stearns Bank”), a nationally chartered and FDIC-insured financial institution with deep commercial lending experience and a broad suite of business financing products. Stearns Bank and its divisions deliver traditional and SBA-backed capital solutions through both direct lending and a nationwide lending marketplace.

📌 What This Means for You

This section explains the principal loan and financing programs that may be available through Stearns Bank and its South End Capital division. Eligibility, terms, interest rates, and documentation requirements vary by product and lender, and all financing is subject to underwriting approval. Neither HybridFunder nor Stearns Bank guarantees approval or funding. Terms below are general descriptions, not guarantees.

🧾 1. SBA Loan Programs

Stearns Bank participates as a Preferred SBA Lender, meaning it has authority to underwrite and close SBA guaranteed loans directly without SBA review in many cases.

Available SBA Programs

SBA 7(a) Loans:

Up to ~$5,000,000+ for skilled business expansion, working capital, real estate, and equipment. Terms often from 7 to 25 years. Less stringent equity requirements than many conventional loans.

SBA 504 Loans:

Designed for fixed-asset purchases like real estate and heavy equipment with long amortization.

SBA Express / SBA Express Bridge:

Smaller, expedited SBA options (e.g., up to $50,000–350,000) with quicker turnaround for urgent working capital needs.

Typical Uses

Business acquisitions

Owner-occupied commercial real estate

Long-term equipment purchases

Startup and expansion working capital

Debt refinancing

Important Notes

SBA requires full eligibility documentation including business financials, owner personal guarantees, and collateral where applicable.

Many SBA loans feature no prepayment penalty and competitive interest rates.

💳 2. Conventional Bank Term Loans

Stearns Bank also offers traditional term loans that may be fixed or variable rate, designed for borrowing from mid-sized to larger amounts.

Key Product Features

Loan amounts can vary significantly (e.g., $25,000 to $15,000,000+, depending on program, credit profile, and collateral).

Terms generally 1–10+ years for conventional term goals.

Used for expansion, working capital, real estate, acquisitions, or debt consolidation.

Common Requirements

Some programs may require a minimum personal or business credit score (e.g., ~650+ for preferred pricing).

Bank statements, tax returns, and financial documentation are typically reviewed.

🔄 3. Business Lines of Credit

Lines of credit offer revolving capital access so that you can borrow, repay, and re-borrow up to an approved limit.

Program Highlights

Credit lines up to ~$10,000,000+ possible in some structures.

Interest only on amounts drawn.

Flexible draw and repayment options.

Useful for inventory purchases, seasonal payroll, marketing campaigns, or working capital smoothing.

🛠️ 4. Equipment Financing

Stearns Bank and South End Capital support commercial equipment purchases through tailored financing that may allow up to 100% equipment cost coverage depending on credit and usage.

Typical Features

Financing available for new and used equipment.

Terms often range from 2–7+ years depending on asset life.

May include seasonal or deferred payment structures.

Mission-critical equipment for industries like manufacturing, construction, medical, and transportation may be eligible.

📊 5. Other Commercial Financing Options

In addition to the products above, South End Capital’s technology-enabled marketplace may originate or place financing through third-party partners when internal funding isn’t applicable, expanding overall access to capital across the U.S.

Examples include:

Commercial real estate mortgages

Cash-out real estate refinances

Asset-based or application-only real estate loans

Bridge financing structures

Note: External lender products are subject to separate underwriting criteria and may differ in terms, rates, and documentation.

🧠 How South End Capital & Stearns Bank Work Together

South End Capital operates as a division of Stearns Bank N.A., leveraging Stearns Bank’s balance sheet, lending expertise, and technology infrastructure to streamline access to traditional financing.

Stearns Bank is a Preferred SBA Lender, enabling in-house SBA approvals and servicing.

South End Capital’s platform facilitates a broad suite of financing options, including SBA, conventional, equipment, and lines of credit.

Some programs may be funded directly by Stearns Bank or placed with external lender partners depending on product and eligibility.

⚖️ Important Legal & Compliance Disclosures

No Guarantee of Funding: Neither HybridFunder nor its partners guarantee loan approval or specific financial terms.

Credit & Eligibility: All financing is contingent on underwriting, creditworthiness, collateral, and applicable lender criteria.

Documentation: Most traditional bank and SBA programs require financial documentation, tax returns, personal guarantees, and appraisal information where applicable.

No Legal/Tax Advice: The information provided here is educational — consult a qualified attorney, accountant, or tax professional for personalized guidance.

FDIC & Regulatory: Stearns Bank, N.A. is an FDIC-insured institution. South End Capital operates under Stearns Bank regulatory oversight.