First United Bank Business Loans: A Complete Guide for Small Business Success

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In today’s fast-paced business world, access to capital can make all the difference in a company’s ability to grow, innovate, and thrive. For small business owners and entrepreneurs, securing the right financial support is often the first step toward turning ideas into realities. Whether you’re looking to expand operations, invest in new equipment, or manage day-to-day expenses, having a reliable financial partner can be invaluable. This is where First United Bank steps in, offering a suite of tailored business loans designed to meet the unique needs of each business.

First United Bank is more than just a financial institution—it’s a community-focused partner that understands the challenges and goals of local businesses. With a history rooted in service, integrity, and dedication to helping businesses succeed, First United Bank has built a reputation for providing reliable financial products alongside personalized support. From small business loans to specialized commercial real estate financing, First United Bank offers solutions for every stage of business growth.

In this guide, we’ll take you through everything you need to know about business loans offered by First United Bank. We’ll explore the various types of loans available, eligibility requirements, benefits of working with First United Bank, and how to apply. Whether you’re an established business looking for expansion opportunities or a new entrepreneur seeking start-up funds, this post will help you make informed decisions about financing options that best suit your business needs.

Let’s dive in and discover how First United Bank’s business loans can be the foundation for your company’s future success!

About First United Bank

First United Bank, headquartered in Durant, Oklahoma, is a prominent financial institution specializing in personal and commercial banking, investment management, insurance, and mortgage products. With assets totaling $13 billion, it ranks as the seventh-largest bank in Oklahoma, operating 85 locations across Oklahoma and Texas.

Historical Background

Established on October 2, 1900, as Durant National Bank in Bryan County, Choctaw Nation Territory (now Durant, Oklahoma), the bank has undergone significant transformations over the years. In 1915, it absorbed eight regional banks and, in 1916, constructed a new building at 2nd and Main Streets in Durant. The institution was renamed Durant Bank & Trust in 1963, becoming one of the first banks in Oklahoma to attain full trust powers. In 1998, it adopted the name First United Bank.

Leadership and Growth

John Massey, an Oklahoma native, joined Durant Bank & Trust in 1966 as a director and was appointed chairman of the board in 1986. At that time, he also became the majority shareholder and CEO. Greg Massey, his son, joined the bank in 1990 and succeeded his father as CEO in 2003. Under their leadership, First United Bank has expanded its footprint, including a merger with American Bank of Texas in 2016, resulting in 73 locations and $12.5 billion in assets.

Mission and Community Commitment

First United Bank is dedicated to supporting local communities and positively impacting the lives of its stakeholders. The bank aims to meet customers where they are, providing resources that educate and inspire them along their unique paths to success. Through its “Spend Life Wisely” initiative, First United Bank focuses on elevating lives by promoting financial well-being, personal development, and community involvement.

Services Offered

As a progressive and innovative community banking organization, First United Bank offers a wide range of financial services, including:

Retail and Commercial Banking: Tailored solutions for individuals and businesses to manage finances effectively.
Investment Management: Expert guidance to help clients grow and protect their wealth.
Insurance Products: Comprehensive coverage options to safeguard personal and business assets.
Mortgage Services: Flexible mortgage solutions to assist clients in achieving homeownership goals.

By virtue of its growth from a single-unit bank into a multi-community banking enterprise, First United is categorized as a “Super Community Bank.” This classification reflects its extensive range of services and commitment to the communities it serves.

With a strong foundation built on trust, integrity, and community engagement, First United Bank continues to play a vital role in the financial well-being of individuals and businesses throughout Oklahoma and Texas.

Types of Business Loans Offered by First United Bank

First United Bank offers a comprehensive suite of business loan products designed to meet the diverse needs of businesses at various stages of growth. Their offerings include:

Commercial Real Estate & Construction Loans

These loans are tailored for businesses looking to purchase, refinance, expand, or construct commercial properties. They provide financing solutions for owner-occupied real estate and development projects, ensuring businesses have the necessary facilities to operate and grow.

Working Capital Lines of Credit

To assist businesses in managing day-to-day operations and cash flow fluctuations, First United Bank offers working capital lines of credit. These revolving credit lines provide access to funds as needed, enabling businesses to seize opportunities and address unexpected expenses promptly.

Equipment Financing

For businesses aiming to acquire new machinery or upgrade existing equipment, equipment financing options are available. These loans facilitate the purchase of essential tools and technology, helping businesses maintain competitiveness and operational efficiency.

SBA & USDA Loans

As a Preferred Lending Partner with the Small Business Administration (SBA), First United Bank offers SBA 7(a) and SBA 504 loan programs. These government-backed loans provide benefits such as longer terms, lower down payments, and more flexible collateral requirements, supporting small businesses in their growth endeavors. Additionally, USDA Business and Industry Loans are available for businesses in eligible rural areas, offering financing solutions with favorable terms.

Operating Lines of Credit

To support ongoing operational needs, First United Bank provides operating lines of credit. These lines offer businesses the flexibility to manage short-term financial requirements, ensuring smooth operations and the ability to respond to immediate financial demands.

By offering these diverse financing options, First United Bank demonstrates its commitment to supporting businesses across various industries, providing the financial tools necessary for success and growth.

Benefits of Choosing First United Bank for Business Loans

Choosing First United Bank for your business financing needs offers several distinct advantages:

Diverse Financing Options

First United Bank provides a comprehensive range of business loan products, including:

Commercial Real Estate & Construction Loans: Ideal for businesses looking to purchase, refinance, expand, or construct commercial properties.
Working Capital Lines of Credit: Assist in managing day-to-day operations and cash flow fluctuations.
Equipment Financing: Facilitates the acquisition of new machinery or upgrading existing equipment.
SBA & USDA Loans: As a Preferred Lending Partner with the Small Business Administration (SBA), First United Bank offers SBA 7(a) and SBA 504 loan programs, providing benefits such as longer terms, lower down payments, and more flexible collateral requirements.

Competitive Interest Rates and Flexible Terms

The bank offers competitive interest rates and flexible repayment terms tailored to meet the unique needs of each business, ensuring manageable loan structures that align with your financial goals.

Personalized Service and Local Decision-Making

With over a century of commercial banking experience, First United Bank emphasizes personalized service. Decisions are made locally by individuals with a vested interest in the success of their communities, providing timely responses and customized solutions.

Commitment to Community and Customer Success

Rooted in West Texas communities, First United Bank operates by founding principles of generosity, loyalty, integrity, and community. This commitment ensures that they prioritize doing the right thing for their customers, even when it’s not convenient or easy.

By choosing First United Bank, businesses gain a trusted financial partner dedicated to supporting their growth and success through tailored financing solutions and a deep commitment to community values.

Eligibility and Requirements for First United Bank Business Loans

To qualify for a business loan with First United Bank, applicants must meet specific eligibility criteria and provide necessary documentation. While requirements may vary based on the loan type and amount, the following general guidelines apply:

Business Information Documents

Financial Statements: Provide current balance sheets and profit and loss statements for the business.
Tax Returns: Submit the last three years of business tax returns.
Debt Schedule: Include a summary of current business debts.
Projections: Offer month-by-month financial projections for the remainder of the year and the next calendar year.
Business Plan: Provide a description of the business or a comprehensive business plan.

Individual Guarantor Information

For individuals with a 20% or more ownership interest in the business:

Personal Financial Statement: A statement less than 60 days old.
Personal Tax Returns: The last three years of personal federal tax returns, including all schedules, statements, K-1s, and W-2s (needed for outside income).
Income Statement and Balance Sheet: The last three years’ personal income statements and balance sheets.
Global Debt Schedule: A summary of current personal financing.

Business/Corporate Guarantor Information

Debt Schedule: A summary of current business debts.

Legal Entity Documentation

Provide relevant legal documents pertaining to the business entity.

Additional Items (if applicable)

For Commercial Real Estate Loans:

- Purchase contract or buy/sell agreement, including all exhibits and addenda.
- New construction budget or contract.
- Description of real estate operating statements.

For Purchase of Machinery or Equipment:

- Detailed description and specifications of equipment to be purchased.

For Refinancing Equipment:

- Detailed list of equipment and machinery to be refinanced.

Creditworthiness

All loan programs are subject to credit approval, and loan amounts depend on the applicant’s creditworthiness. The term, amount, interest rate, and repayment schedule for the loan, as well as any product features, may vary based on creditworthiness and the type, amount, and collateral for the loan.

For specific questions or to determine which items apply to your situation, contact First United Bank at (800) 924-4427 and ask for a commercial lender in your area.

How to Apply for a Business Loan at First United Bank

Applying for a business loan at First United Bank involves a structured process designed to assess your business’s financial health and funding needs. Here’s a step-by-step guide to help you navigate the application:

Pre-Application Preparation

Assess Your Financial Needs: Determine the specific purpose of the loan, such as purchasing equipment, expanding operations, or managing cash flow.
Gather Necessary Documentation: Collect essential financial documents, including:

- Current balance sheets and profit and loss statements.
- Last three years of business tax returns.
- Business debt schedules.
- Month-by-month financial projections for the upcoming year.
- A comprehensive business plan detailing your operations and growth strategy.

Contact a Commercial Lender

Reach out to a commercial lender at First United Bank to discuss your financing needs and understand the loan options available. You can contact them at (800) 924-4427 to connect with a lender in your area.

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Complete the Loan Application

Work with your commercial lender to fill out the loan application form, providing accurate and detailed information about your business and financial status.

Submit Supporting Documents

Along with the application, submit all gathered financial documents. Ensure that all information is up-to-date and accurately reflects your business’s financial condition.

Underwriting and Review

The bank’s underwriting team will review your application and supporting documents to assess creditworthiness and the feasibility of the loan. This process may involve:

Evaluating financial statements and credit history.
Assessing collateral if required.
Verifying business and personal financial information.

Loan Decision and Closing

After the review, the bank will inform you of the loan decision. If approved, you’ll proceed to the loan closing, where you’ll sign the necessary agreements and receive the funds.

Additional Tips:

Maintain Clear Communication: Stay in regular contact with your commercial lender throughout the process to address any questions or provide additional information promptly.
Prepare for Potential Questions: Be ready to discuss your business plan, how you intend to use the loan funds, and your repayment strategy.

By following these steps and preparing thoroughly, you can facilitate a smooth application process for a business loan at First United Bank.

What Makes First United Bank Business Loans Unique?

First United Bank’s business loans stand out due to several distinctive features:

Tailored Financing Solutions

With over a century of commercial banking experience, First United Bank offers a diverse range of loan products, including:

Commercial Real Estate & Construction Loans: Designed for businesses aiming to purchase, refinance, expand, or construct commercial properties.
Working Capital Lines of Credit: Assist in managing day-to-day operations and cash flow fluctuations.
Equipment Financing: Facilitates the acquisition of new machinery or upgrading existing equipment.
SBA & USDA Loans: As a Preferred Lending Partner with the Small Business Administration (SBA), First United Bank offers SBA 7(a) and SBA 504 loan programs, providing benefits such as longer terms, lower down payments, and more flexible collateral requirements.

Personalized Service and Local Decision-Making

First United Bank emphasizes personalized service, with decisions made locally by individuals invested in the success of their communities. This approach ensures timely responses and customized solutions tailored to each business’s unique needs.

Commitment to Community and Customer Success

Interest Rates and Repayment Terms

Understanding the interest rates and repayment terms associated with business loans is crucial for effective financial planning. Here’s an overview of what you can expect:

Interest Rates

Interest rates on business loans can vary based on several factors, including the type of loan, the lender, and the borrower’s creditworthiness. As of November 2024, average business loan interest rates are as follows:

Bank Small-Business Loans:42% to 12.41%
Online Term Loans: 6% to 99%
SBA Loans: Variable rates ranging from 10.75% to 14.25% and fixed rates from 12.75% to 15.75%

It’s important to note that these rates are influenced by factors such as loan amount, term length, and the borrower’s financial profile.

Repayment Terms

Repayment terms for business loans also vary depending on the loan type and lender:

Term Loans: Typically up to 10 years, suitable for business expansion projects.
SBA Loans: Up to 25 years for real estate and up to 10 years for working capital and fixed assets.
Equipment Financing: Up to 10 years, aligning with the useful life of the equipment.

Longer repayment terms generally result in lower monthly payments but may lead to higher total interest costs over the life of the loan.

Factors Influencing Rates and Terms

Several factors can affect the interest rates and repayment terms offered:

Creditworthiness: A strong credit profile can lead to more favorable rates and terms.
Loan Amount and Purpose: Larger loans or those for specific purposes like real estate may have different terms.
Collateral: Secured loans often come with lower interest rates due to reduced risk for the lender.

It’s advisable to consult directly with lenders to understand the specific rates and terms applicable to your business situation.

Tips for Getting Approved for a Business Loan with First United Bank

Securing a business loan with First United Bank requires thorough preparation and a clear demonstration of your business’s financial health and potential. To enhance your chances of approval, consider the following strategies:

Develop a Comprehensive Business Plan

A well-structured business plan outlines your business objectives, market analysis, operational strategies, and financial projections. This document not only guides your business but also showcases to the bank your preparedness and strategic vision.

Maintain Strong Personal and Business Credit Scores

Lenders assess both personal and business credit histories to evaluate creditworthiness. Ensure timely payments of debts and manage credit utilization effectively to maintain favorable credit scores.

Prepare Detailed Financial Statements

Provide up-to-date financial documents, including balance sheets, income statements, and cash flow statements. These records offer insight into your business’s financial stability and profitability.

Demonstrate Consistent Cash Flow

A steady cash flow indicates your business’s ability to meet financial obligations. Present historical cash flow statements and future projections to illustrate financial health.

Gather Necessary Documentation

Compile all required documents, such as tax returns, legal entity documentation, and a business debt schedule. Having these ready expedites the application process.

Offer Adequate Collateral

Be prepared to provide collateral to secure the loan. This could include business assets like equipment or real estate, which reduce the lender’s risk.

Build a Relationship with the Bank

Establishing a rapport with First United Bank can be beneficial. Engage with bank representatives to understand their loan products and demonstrate your commitment to a long-term partnership.

Ensure Compliance with Legal Requirements

Verify that your business complies with all legal and regulatory obligations, including licenses and permits. Non-compliance can hinder loan approval.

By diligently preparing and presenting a strong case, you can improve your prospects of securing a business loan with First United Bank.

Frequently Asked Questions (FAQs)

What types of businesses are eligible for loans from First United Bank?

First United Bank supports a wide range of businesses across industries, including retail, manufacturing, real estate, and service-oriented businesses. Specific loan options and eligibility criteria may vary, so it’s best to consult with a commercial lender for details.

How long does the loan approval process take?

The approval process can vary depending on the loan type and complexity of the application. Generally, it may take a few days to several weeks. First United Bank works to provide timely responses, especially for smaller, less complex loans.

Can I apply for a business loan online?

Yes, you can begin the application process online or by contacting a commercial lender at First United Bank. Some initial information can be provided through the bank’s website, but a full application may require in-person meetings for more complex loans.

Are there special programs for minority-owned or women-owned businesses?

Yes, First United Bank may offer specific programs for minority-owned, women-owned, or veteran-owned businesses through SBA loans and other initiatives. These options provide additional support and may include favorable terms.

Do I need to provide collateral for a business loan?

Many business loans do require collateral, especially for larger loans or those with extended repayment terms. Collateral can include assets like equipment, real estate, or inventory. Discuss collateral options with your lender for specific loan types.

What documents are required to apply for a loan?

Typical documents include business financial statements, tax returns, a detailed business plan, debt schedules, and personal financial statements for owners with a significant stake in the business. Additional documents may be required based on the loan amount and type.

What are the repayment terms for business loans?

Repayment terms vary by loan type, generally ranging from short-term (12 months) to long-term (up to 25 years for some real estate loans). The terms will be set based on the loan’s purpose, the borrower’s needs, and the bank’s assessment of financial stability.

How can I improve my chances of getting approved for a loan?

Maintaining a strong credit history, preparing a thorough business plan, and providing consistent cash flow statements can improve your chances of approval. Offering collateral and establishing a relationship with First United Bank also helps.

Can I use a loan from First United Bank to refinance existing business debt?

Yes, First United Bank offers loans that may be used to refinance existing business debt. Discuss your refinancing goals with a commercial lender to determine which loan options might be best suited for this purpose.

What happens if I miss a payment on my business loan?

If you miss a payment, it’s essential to contact First United Bank immediately to discuss options. The bank may offer solutions to help you stay on track, but repeated missed payments can affect your credit score and lead to additional fees or penalties.

Conclusion

Choosing the right financial partner is a pivotal decision for any business owner, and First United Bank stands out as a trusted ally for businesses of all sizes. With its wide range of business loan options, competitive interest rates, flexible repayment terms, and commitment to personalized service, First United Bank provides the resources necessary to help businesses grow and succeed.

Whether you’re looking to expand your operations, purchase essential equipment, manage cash flow, or invest in commercial real estate, First United Bank’s tailored solutions are designed to meet your specific needs. Their dedicated commercial lenders understand the challenges of running a business and are committed to supporting you every step of the way.

By choosing First United Bank, you’re not only gaining access to capital but also joining a community-centered institution that values integrity, community impact, and customer success. Take the next step toward achieving your business goals by exploring the financing options with First United Bank today. Reach out to a commercial lender, begin your application, and set your business on a path to growth and long-term success.

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