FDIC-Insured
- Backed by the full faith and credit of the U.S. Government
To report a lost or stolen debit card please call 407.545.2662 during normal operating hours. After hours, please call 1.800.500.1044 immediately or access www.visa.com
Our Bank Routing and Transit Number is: 063114661
You will be linking to another website not owned or operated by Cogent Bank. Cogent Bank is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by Cogent Bank of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from Cogent Bank.
If you "Proceed", the link will open in a new window.
You are leaving Cogent Bank and going to Cogent Private Wealth, a boutique advisory firm offering comprehensive financial planning and investment management services. Some of their products are NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY; NOT GUARANTEED BY THE BANK; and MAY LOSE VALUE.
If you "Proceed", the link will open in a new window.
Please note that by clicking on this email address, you are leaving the Cogent Bank website and accessing an external email platform. Cogent Bank has no control over the content of any communications contained within this platform and cannot be held responsible for any information exchanged. We caution users to be careful when sharing any personal or sensitive information via email, as it may be intercepted or misused by third parties. By using this email platform, you accept full responsibility for any risks that may arise from its use.
If you "Proceed", the link will open in a new window.
Join us for an informative conversation with one of Cogent Bank’s SBA Lenders, Tom Koether. Tom brings 32 years of experience to his role as an SVP Business Development Officer. He specializes in offering government-guaranteed lending solutions to small business customers through three different lending arrangements: SBA 7(a) and SBA 504 through the U.S. Small Business Administration (SBA) and USDA Business & Industry Loans through the U.S. Department of Agriculture.
Tom lives in Lafayette, Georgia, on a 48-acre farm with his wife of nearly 35 years, Cheri. Their daughter, Catie, is a graduate of the University of Georgia (Go Dawgs!). In his free time, Tom enjoys riding his Harley Davidson Road Glide Special, boating on local lakes, and playing golf.
I’ve been in banking since 1986, when I worked as a bank teller while going to college. After graduation, I went into a management training program and managed retail branches for 5-7 years. After that, I moved into business and corporate banking. In 2012, I went into SBA lending full-time after dabbling in it for 25 years.
For small business owners, access to capital in a traditional setting is more restrictive. The SBA loan program is more flexible and forgiving, allowing these entrepreneurs to reach their dreams. Whether it’s helping borrowers start, expand, or buy a business, it’s very satisfying to be part of this process and the resulting success stories.
I’ve worked for both larger regional and community banks. In my experience, large banks don’t do very well with complicated transactions. They don’t spend enough time with small business customers to get to the point where they can offer financial assistance in the form of a loan. When large banks do SBA loans, it’s typically a small amount in large batches and based solely on credit score.
In contrast, community banks are personal—we get to know our borrowers’ backgrounds, education, work history, and unique stories. We also help them develop a business plan to support their success.
Access to capital is the most common reason. It’s always challenging for entrepreneurs to get conventional financing to encompass all they need for their small business.
The SBA offers financing for multiple loan purposes such as the purchase of real estate, buying a business, or equipment, inventory, working capital, goodwill, and debt refinance. Required equity depends upon the particular project in some cases 100% financing may be available.
Some people assume that SBA lending is only for start-ups or borrowers who find it challenging to get conventional financing. However, we’ve seen a lot businesses who may have obtained conventional financing in the past come to us for SBA loans due to the tightening of conventional financing and their desire for more flexible lending terms.
The biggest difference is that 7(a) loans provide financing for for many loan purposes. Whereas, 504 loans only provide financing for commercial real estate purchases or refinance of owner-occupied properties (as long as 51% is occupied by the business owner, the rest of the space can be leased).
Another big difference is with interest rates. 504 loans come with a long-term fixed rate with a 20 or 25 year loan term on the second mortgage with SBA. The Bank’s first mortgage on SBA may be fixed or variable. 7(a) loans have a variable rate that adjusts quarterly based on the WSJ prime rate.
The SBA’s Standard Operating Procedures book is updated periodically. When you choose an experienced SBA lender like Cogent Bank, we can help you determine your eligibility upfront, so you don’t waste your time only to end up with a denial.
Determining your eligibility starts with identifying the purpose of the loan. For example, buying a franchise, building a gas station, buying an existing medical business, etc.
Compared with conventional financing, the down payment required for an SBA loan is little to none. For 504 loans, half is a conventional mortgage from the bank, 30-40% is backed by the SBA, and the borrower puts 10-20% down.
As part of the application process for all SBA loans, borrowers must prepare projections for at least two years. Start-ups should create a business plan. Sensitivity analysis is part of the underwriting process to determine post-closing liquidity.
As a Preferred Lender for the SBA, we have the ability to work through a loan quickly. On average, SBA loans take 45-75 days from start to finish. Real estate acquisitions can close within 30 days—it just requires active involvement from the buyer and seller.
The three phases of the SBA application process are:
When necessary, Cogent Bank can close loans rapidly for borrowers with short closing requirements.
Although we’re based in Florida, Cogent Bank is a national SBA lender. We’re open to all kinds of deals, such as convenience stores, hotels, acquisitions, medical/dental, childcare, assisted living, and more. Our team of business development officers is very experienced with SBA lending–each of us has, on average, 25-30 years of experience, including direct experience working for the agency.
Cogent is an approved lender for the SBA, which means we can approve loans internally on behalf of the agency. This makes the process faster and more efficient. We also have a streamlined approval process with as a few layers as possible to deliver a quick and easy experience for our clients.
We understand that the current economic environment is challenging, as small business owners deal with inflation, rising rates, and the possibility of recession. However, Cogent Bank is well capitalized and looking to expand on SBA loans. We will help you navigate the application process and required paperwork to make it as easy as possible for you. To learn more or apply for a small business loan, contact Tom today!
The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.