First Republic Bank operates branches in:
- New York
finder.com’s rating: 3.4 / 5.0
|Product Name||First Republic Bank Business Loans|
|Loan Term||Up to 5 years|
|Requirements||Profitable for 3+ years, personal credit score 700+, valid First Republic Bank checking account, no bankruptcies in the past 10 years, enough personal equity to guarantee the loan, no negative marks on credit report.|
You must meet personal and business requirements to be eligible for a First Republic Bank business loan:
First Republic Bank offers two types of business loans: secured term loans and lines of credit. First Republic Bank’s business line of credit is backed by a lien on your business assets and a personal guarantee. They’re not for rookies: You need three years of profitability to qualify for a loan. Loan amounts also start at $25,000, which is much higher than some other types of business loans.
Businesses that have a history with First Republic Bank might find a stronger deal than others, because rates on term loans depend on your relationship. These come with a fixed and variable rates that start at either 2% below prime rate and run to 2% above.
All loans come with an origination fee equal to 0.5% to 1% of your loan amount, which the bank deducts from your loan funds before your business receives them. Sometimes, First Republic waives this fee as a promotion. Terms run as long as five years.
First Republic Bank also offers term loans specifically designed to cover the costs of construction and real estate. Construction loans start as a line of credit that turns into a long-term loan with variable or fixed interest after the project is over. With all loans, the bank tailors your terms, rates and fees to your business’s specific needs.
In addition to traditional business loans, First Republic offers financing specifically designed for nonprofits and organizations. Through this program, you work with a banker who specializes in nonprofit lending and can help you navigate loans to find low-cost financing that’s exempt from taxes. It also offers banking services to nonprofits, including assistance with 403(b) retirement plans and day-to-day cost management.
First Republic Bank brings a personal touch to business financing that has all but disappeared in the industry. Where other banks cut back on staff and customer service, First Republic pushes to prioritize customer experiences. There are no tellers at its branches, only specialists. Customers at many branches can even enjoy freshly baked cookies.
While the process might take longer than applying for a loan online, seasoned business owners with a large project on the horizon might benefit from the personalized detail that First Republic Bank offers its borrowers. You’ll have a point of contact to walk you through the application process and answer any questions you have along the way.
Applying for a business loan through First Republic Bank can be complicated than other types of business loans. Before you get started, make sure you meet First Republic’s personal and business eligibility requirements.
To have enough personal equity to guarantee a loan — or pay it off if your business fails — doesn’t necessarily mean that you need that amount as upfront cash. The value of your home, car or any other big-ticket items count toward your personal equity.
Because completing the application requires visiting a branch in person, you must be close enough to a branch to maintain a regular banking relationship.
The whole process can take six weeks or longer, depending on how much time it takes to get your documents together.
Typically, First Republic asks to see the following documents when your business applies for a loan:
Most First Republic Bank customers sign up for automatic repayments, so your business won’t need to take the time to pay off the loan each month. You still might want to keep your adviser’s number on hand to ask any questions about your loan.
Keep an eye on your bank account and your loan balance. If you notice something wrong, don’t hesitate to reach out.
First Republic Bank loans could be a lending option for seasoned businesses in need of a large amount of money. It’s not a great option, however, if your business isn’t profitable yet or needs emergency cash. Its lack of locations also means that most business owners in the US won’t be eligible for a loan based on geography alone.
Want to find more business financing options? Read our guide to business loans, where you can compare more lenders.
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