Rodney Borges
Small businesses play a pivotal role in fueling economic growth and creating opportunities for entrepreneurs and the communities they serve to thrive. If you’re exploring financing options to start or grow a business, 2025 offers a unique chance to leverage Small Business Administration loans.
Plumas Bank’s SVP, Small Business Lending Group Manager, Rodney Borges, has spent 34 years connecting clients with the tools they need for success. Borges shared, “I’ve watched my clients experience the tangible value of Plumas Bank’s relationship-based banking approach – and the benefits go both ways: While we as bankers are always keeping our eyes open for insights to share with our clients based on our knowledge of their business goals and financial aspirations, our clients learn that they can come to us for personalized input and expert knowledge, which creates an environment of trust.”
SBA loans remain a powerful tool for small business owners looking to grow, innovate, or secure their future. Plumas Bank’s commitment to personalized service, consistent policies, and clear communication ensures that you’ll get the guidance you need to succeed.
Here are Borges’ thoughts on the latest trends and opportunities in SBA lending.
A Robust Landscape for Borrowers
It’s a great time for small business applicants to pursue financing.
Inflation is still relatively high — pushing 3% — and unemployment remains low. At Plumas Bank, our fixed-rate portfolio product offers stability. This is particularly valuable in an uncertain rate environment and a crucial factor for small businesses planning long-term investments.
Fixed vs. Variable: Choosing the Right Path
One of the key decisions borrowers often face is whether to choose fixed- or variable-rate loans. Let me outline the distinctions:
Variable Rates: Tied to the prime rate, variable rates — also called floating rates — fluctuate, making them less predictable. With the prime rate currently at 7.5%, typical floating rates under the SBA 7(a) program range from 9.5% to 10.5%.
Fixed Rates: At Plumas Bank, our fixed rates are not tied to the prime rate, so under the same conditions I outlined above, fixed rates currently range from about 7.5% to 8.5% for 7-25 year terms depending on the use of loan proceeds.
Fixed rates aren’t affected by changes in the Federal Reserve’s decisions. This makes them a compelling option for borrowers seeking predictability.
The Community Bank Advantage
In an era where automation is prevalent, community banks like Plumas Bank stand out for our personalized service. Here’s how we do it:
Our program involves multiple stages of personal touch. From the business development officer to the underwriter and processor, we maintain direct communication with borrowers throughout the process.
This attention to detail not only expedites decisions, but it also strengthens relationships. Even when we can’t approve a loan, we provide feedback and alternatives to set applicants up for future success.
Advice for First-Time Borrowers
Preparation is key to successful loan applications. Here’s my advice for first-time borrowers:
Complete Applications: Provide all requested information, including tax returns and business plans. Missing details can delay decisions. The more complete your application, the better decisions we can make and the faster we can provide an answer.
Clarity in Loan Usage: Clearly articulate how you plan to use the funds — whether for equipment purchases, working capital, real estate, or something else.
Plan for Success: Show how the loan will enable your business to grow and how you’ll repay it.
Industry Trends and Opportunities
At Plumas Bank, we work with applicants across many industries. Those who choose SBA funding typically include:
Small Businesses Seeking Growth and Expansion: This includes entrepreneurs looking to purchase existing businesses, open new locations, acquire and/or improve real estate for business use.
Specialized Financing Needs: Many business owners seek financing for tenant improvements, equipment purchases, or working capital.
Looking Ahead: The Future of SBA Lending
While default rates are rising industry-wide, Plumas Bank maintains a less-than-1% default rate thanks to consistent and reasonable credit policies. We’ve been in this market for 17 years, providing common-sense lending and honest answers.
Whether you’re a first-time borrower or an established businessperson, partnering with a trusted community bank like Plumas Bank can make all the difference in navigating SBA loan options and turning your vision into reality.