Business Lending Products

Lending Products for your Business World. With Severn, Business lending is tailored to your organization.

At Severn, we understand the urgent need for capital in your business world. It allows you to operate and succeed and realize your visions and ambitions. That's why we offer a variety of products that all come with the same signature features—locally made decisions, greater consideration, and a timely answer. It all starts with a lender who has faith in you.

Loans and Lines of Credit

Business Overdraft Line (BOL)

Every business, from the biggest to the most entrepreneurial wants reassurance. Severn's overdraft protection allows your firm to write checks with confidence. Severn's Business Overdraft Line works like this:

• Attached to the Borrower's primary checking account
• Advances are automatic in $1,000 increments
• The line is in $5,000 or $10,000 amounts
• Secured with a Blanket UCC Filing on all business assets
• Interest only billed monthly
• Subject to a 30-day clean-up period
• Personal guaranty required
• Rate WSJP + 2% or WSJP + 3%
• 1% Commitment Fee

Traditional Line of Credit (LOC)

Severn's traditional line of credit is a thriving businesses' best friend. It is always there when you need it, providing vital capital for day-to-day expenses and includes:

• Short-term working capital
• No maximum
• Advances are faxed to Business Lending or Loan Servicing. Advance request may be subject to verification Interest only billed monthly
• Subject to a 30-day clean-up period
• Subject to financial covenants
• Personal guaranty required
• Rate set on a case-by-case basis
• Fee set on a case-by-case basis

Business Equity Line of Credit (BELOC)

The Business Equity Line of Credit is for businesses that don't have a long track record of debt repayment. Here's how it works:

• Same conditions as LOC
• Line is secured by an Indemnity Deed of Trust (IDOT) on the personal residence of credit's primary guarantor
• Standard appraisal guidelines apply
• Standard title requirements apply
• Rate set on case-by-case basis
• Fee set on case-by-case basis

Equipment Line of Credit (ELOC)

These days, no business is immune from the need for expensive equipment. Remaining competitive means staying up-to-date. This pre-approved loan lets your business buy the tools of success.

• Line is a guidance facility
• Borrower is approved for a set dollar amount
• Requests are drawn against the line and specific terms and rates are applied to each loan
• Rate determined at time of advance
• Loan secured by blanket UCC Filing on all business assets
• Loan may be secured by a specific piece of equipment

Term Loan

A traditional term loan allows you to keep a solid handle on what you are borrowing, how much your monthly payments will be, and for how long. It's ideal for the business that needs to finance a specific purchase over a long period of time.

• Used for long-term financing
• Flexible structure
• Rate is set based on type of equipment purchased and term requested
• P and I payments due monthly
• Fully amortized over the life of the loan

Time Notes

One loan, one payment, one time. This loan provides between 30 and 90 days to pay for whatever your business requires.

• Issued for a specific purpose with a term of 30, 60 or 90 days
• Interest accrues based on the rate assigned and a one-time payment which is due at maturity, including the original principal and all accrued interest

Commercial Mortgage

When your business ambitions include real estate, Severn helps you acquire real property. The Severn Commercial Mortgage is decidedly local and includes a deep understanding of Anne Arundel real estate and its importance to local business.

• Owner occupied properties
• 75-80% LTV required
• Rate set on a case-by-case basis
• 5-year maturity with a 20-25 year amortization
• 1% Commitment Fee plus all applicable closing costs
• Subject to standard Appraisal requirements
• Subject to standard Title requirements
• Subject to standard Environmental requirements
• Business Banking Services

Applications

Commercial Credit Application

Personal Financial Statement

As a locally based organization, Severn believes that Business Lending is one of our most important jobs. By providing much-needed capital, we help keep our community successful, employed and prosperous. If it matters to you, it matters to Severn.

For help and more information:
Toll Free: (800) 752-5854

24-Hour Telephone Banking:
(888) 802-9896

24-Hour Internet Banking:
www.severnbank.com