Commercial Loans in Iowa

A commercial loan is a debt-based funding agreement between a business and a financial institution, used to fund major capital expenditures or cover operational costs.

At Farmers State Bank, our commercial loans are tailored to Iowa businesses and involve a local underwriting process. Once approved, funds are typically disbursed as a lump sum for purchases or as a line of credit for ongoing needs, with repayment terms based on the business's cash flow and the life of the asset being financed.

Commercial loan rates in Eastern Iowa vary based on the loan type, the borrower’s credit profile, and current market conditions. FSB offers competitive variable and fixed-rate options for commercial real estate and construction.

Because commercial lending is highly personalized, we recommend contacting a local commercial lender in Marion, Cedar Rapids, or Iowa City for a custom rate quote that reflects your specific business financial health and collateral.

To apply for a commercial loan with FSB, you will typically need to provide three years of business and personal tax returns, a current balance sheet, an income statement (P&L), and a summary of the financing request. For real estate or equipment loans, documentation regarding the collateral is also required. Our local lenders guide you through the documentation process to ensure a streamlined approval.

The primary difference is the guarantor. A commercial loan is a conventional agreement directly between the bank and the business, often offering faster closing times and fewer government-mandated forms. An SBA loan is partially guaranteed by the U.S. Small Business Administration, which allows for lower down payments and longer terms for businesses that might not meet traditional conventional lending criteria. FSB offers both to ensure you have the right fit for your growth stage.

Choosing a local lender like Farmers State Bank provides a significant advantage through in-house decision-making. Unlike national lenders, our commercial team understands the Eastern Iowa economy and real estate market. This local expertise leads to faster approvals, flexible terms tailored to our community’s needs, and a long-term relationship where your banker is a partner in your business success.