Oklahoma’s Business Growth Catalyst: Small Business Loans

woman working at the Business Loan office in Oklahoma

Oklahoma boasts a diverse economic landscape, encompassing sectors like natural gas, agriculture, food processing, telecommunications, and transportation. While renowned for its prominence in industrial and electronics sectors, hosting several major corporations, Oklahoma also nurtures a thriving community of small businesses.

According to the U.S. Small Business Administration, Oklahoma is home to 367,405 small businesses that employ 718,033 individuals, a substantial portion of the state’s 1.7 million-strong workforce. These enterprises collectively disburse $29,036,986 in payroll, bolstering numerous households across the state.

To ensure the success and growth of small businesses in Oklahoma, choosing the right banking partner is paramount. This guide delves into the top banks in Oklahoma that excel in offering products and services tailored for the unique needs of small businesses.

Small Business Loans in Oklahoma

In Oklahoma, small business loans play a pivotal role in catering to the financial needs of businesses across various sectors. These loans operate similarly to other lending forms where a borrower approaches a lender for financial support.

Once the loan is approved, the borrower commits to repaying the amount over a designated duration, such as 5 or 10 years, with an interest that hinges on the company’s creditworthiness.

Lenders prioritize granting loans to businesses they perceive as capable of repaying. To ascertain this, they necessitate pertinent business details, often gleaned from business plans and critical financial statements such as balance sheets and profit-loss accounts.

Furthermore, a company’s credit record or that of the owner can be indicative of the enterprise’s overall fiscal stability.

Versatility and Use Cases of Small Business Loans

Small business loans in Oklahoma exhibit flexibility, catering to myriad business requirements. Though typically not positioned for nascent businesses, these loans can catalyze growth by facilitating new product launches, staff augmentation, branch expansion, or bolstering marketing and brand visibility.

Lenders offer a diverse array of loan structures tailored to the borrower’s unique prerequisites, including:

  • Conventional bank loans;
  • SBA-backed loans;
  • Business credit lines;
  • Fixed-term business loans;
  • Asset-based equipment financing.

Loans can vary in their structure, with some being a lump-sum disbursement repaid over time with fixed or variable interest. Others, like credit lines, allow recurrent withdrawals and repayments.

Asset-tied loans, such as equipment financing, furnish lenders with enhanced assurance due to the inherent collateral, bolstering their confidence in the loan’s security.

Securing the Right Loan

Companies seeking capital can find small business loans in Oklahoma as an economical avenue to acquire requisite funds. With competitive rates and adaptive terms, these loans can be tailored to a business’s distinct needs.

However, since lenders differ in their offerings, it’s imperative to evaluate multiple options to discern the optimal fit.

Consider exploring alternative funding mechanisms, encompassing local aid initiatives, commercial property loans, for-profit and non-profit grants, and loans extended by credit unions or traditional banks.

Lenders generally employ bespoke loan applications and utilize varied tools like tax return reviews, credit score assessments, and interest rate calculators to evaluate potential borrowers.

Possessing a robust business blueprint or commendable business credit can expedite the process by enhancing your credibility in the lender’s eyes. It’s also noteworthy that many lenders might proffer an assortment of financing solutions to suit diverse business needs.

woman with colleagues in a business district

Top Small Business Loan Lenders in Oklahoma

RANKBANK NAME# OF OKLAHOMA LOANSAVERAGE INTEREST RATEAVERAGE LOAN SIZE
1BancFirst1225.00%$372,904
2Arvest Bank374.79%$287,543
3Legacy Bank265.44%$117,450
4Live Oak Bank235.29%$2,294,978
5First Oklahoma Bank185.39%$1,478,856
6Valliance Bank165.16%$480,788
7First United Bank and Trust Company154.97%$767,000
8Security Bank144.95%$758,486
9SpiritBank145.28%$1,051,279
10Great Plains National Bank135.44%$354,885

BancFirst

BancFirst, with a strong presence across Oklahoma, boasts more than 100 branches spread over 60 communities. Holding assets worth approximately $10 billion, BancFirst is adept at offering an array of financial services ranging from business financing to personal banking options.

Key Takeaways from BancFirst:

  • Leading SBA lender in terms of volume in Oklahoma;
  • Provides SBA 7(a) loans with a ceiling of $5 million;
  • Offers SBA 504 loans capped at $12.5 million;
  • Loan durations extending up to 25 years;
  • Both fixed and variable interest rate structures for SBA 7(a) loans;
  • Fixed interest rates exclusively for SBA 504 loans.

Arvest Bank

Originating in 1961 as the Bank of Bentonville, Arvest Bank has expanded its services beyond Oklahoma to Arkansas, Kansas, and Missouri. They provide comprehensive financial solutions, encompassing business and personal loan products.

  • Recognized as a Preferred SBA lender, ensuring a high degree of autonomy;
  • Offers SBA 7(a) and 504 loans;
  • Provision for the SBA Express program.

Legacy Bank

Legacy Bank, founded in 1886 in Colwich, Kansas, initially catered to regions in Colorado and Kansas. Initially known as the State Bank of Colwich, Legacy Bank now operates from nine strategic locations around Colwich and Wichita.

  • Offers specialized services for small businesses;
  • Specific information about their SBA loan expertise wasn’t confirmed. Direct engagement is recommended for detailed insights.

Live Oak Bank

Headquartered in North Carolina, Live Oak Bank is a cloud-based digital bank servicing customers across all states. Their offerings span across personal to business-centric solutions, inclusive of versatile banking and lending options.

  • Crowned as the leading SBA lender by loan amount for SBA 7(A) loans in 2022;
  • SBA 7(A) and 504 loan programs available;
  • Bank financing of up to 90% for SBA 7(a) loans;
  • SBA 504 loans offered up to $15 million;
  • Loan utilization can range from working capital, acquiring businesses to equipment procurement.

First Oklahoma Bank

Established in 2009 in Tulsa, Oklahoma, First Oklahoma Bank aimed to create a banking environment where every individual is valued. Now, with two branches in operation, the bank offers a diverse range of financial solutions, such as mortgages and commercial loans, catering to its expanding client base.

The benefits of partnering with First Oklahoma Bank for SBA loans:

  • They provide the SBA 7(A) Loan Program;
  • Such loans can cater to various needs like working capital, acquiring businesses, or procuring equipment;
  • The upper loan limit stands at $5 million;
  • Interest rates typically fluctuate based on the Wall Street Journal prime rate. Rates typically range from prime + 1% to prime + 2.5%, contingent upon the borrower’s overall profile and the specific loan dynamics.

Valliance Bank

Valliance Bank provides a diverse portfolio of financial services, encompassing:

  • Loans for Commercial Real Estate;
  • Loans tailored for Small Businesses;
  • USDA and SBA Loan options;
  • Financing for Commercial & Industrial ventures;
  • Credit facilities through Lines of Credit;
  • Bank-issued Credit Cards;
  • Lending solutions for Operating Capital;
  • Lending services focused on Accounts Receivable.

Conclusion

Oklahoma’s dynamic economic environment thrives not only due to its major corporations but also its flourishing small business sector. As revealed by the U.S. Small Business Administration, these businesses significantly contribute to the state’s workforce and household incomes.

For their sustained growth and success, the right financial partnership is critical. Small business loans in Oklahoma serve as vital financial pillars for businesses spanning multiple sectors. These loans, ranging from conventional bank loans to asset-based financing, offer businesses the flexibility to pursue growth initiatives.