Lending Resources

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Lending Resources for Business Partners in PA and NY


SBA Loan Programs

U.S. Small Business Administration (SBA) loan programs provide long- or short-term working capital needs, allow you to fund purchases such as land, buildings or equipment. Citizens & Northern Bank is an SBA Express Lender based on our proven SBA underwriting and processing efficiency, which means faster loan processing for you and your business.

Our knowledgeable experts partner with you to identify options that are right for your business needs.

  • SBA Express: Fast-expediting loans of up to $350,000 provide funds for fixed asset purchases, debt consolidation, or working capital.
  • SBA 7(a) Loans: The most common SBA loan, this program offers up to $5 million for a variety of financing needs, with longer terms and lower collateral requirements than conventional lending.
  • 7(a) Small Loans: Targeted for smaller requests up to $350,000, these loans allow for an expedited and streamlined application process.
  • SBA 504 Loans: These loans are designed for a growing business that needs a long-term fixed rate loan for a major acquisition.

Cash flow can be a concern for growing businesses or businesses with slow-paying receivables. Our BusinessManager® program is the solution, putting your operation on an all-cash basis by providing working capital for your receivables. You can have cash in hand within 24 hours after issuing an invoice. Here's how it helps your business:

  • Improve & maintain cash flow
  • Realize growth opportunities
  • Take advantage of supplier discounts
  • Extend credit terms to your customers
  • Purchase Inventory
  • Reduce existing accounts payable or other debt
  • Hire additional staff
  • Operate with confidence

Complete these documents to start the process of obtaining a business loan from Citizens & Northern Bank.

Personal Financial Income Statement for Loans $100,000 or less - Electronic Fill
Personal Financial Income Statement for Loans $100,000 or less - Print Out
Personal Financial Income Statement for Loans greater than $100,000 - Electronic Fill

As with any document that contains sensitive, personal or private information, we urge you to exercise extreme caution when returning these forms. Because e-mail is not considered a secure means of communication, it is recommended that you mail, fax or drop off any completed form to us. If you would like to return this information through e-mail, please contact your Relationship Manager about our secure, encrypted e-mail option.

We've compiled a list of terms and definitions that commonly arise during the business lending process. If you have any questions or need to clarify anything beyond this glossary, please reach out to us so we can help.

 
Accounts payable Amount owing to creditors for goods and services on an open account
Accounts receivable Amount due from customers for merchandise or services purchased on an open account.
Asset: Anything owned by a business or individual that has commercial or exchange value.
Balance sheet Financial statement that presents a "snapshot" of what the business owns, what it owes, and what equity it has on a given date.
Capital See Equity.
Capital expenditures Purchases of long-term assets, such as equipment, used in manufacturing a product.
Cash flow Incoming cash to the business less the outgoing cash during a given period. Also used to refer to the figure derived from net income plus noncash items charged off in the accrual accounting process.
Collateral Assets pledged to secure a loan.
Collection period ratio Indicates how quickly your customers pay you. Average accounts receivable divided by net sales, multiplied by 365.
Community Reinvestment Act (CRA) Under provisions of the Community Reinvestment Act of 1977, banks and thrift institutions seek opportunities to help meet the credit needs of their local communities, including low- and moderate-income neighborhoods, consistent with safe and sounds operation of the institutions.
Compensating balance Money a bank requires a company to leave in a deposit account as part of a loan agreement.
Corporation Form of business ownership that is a legal entity on its own and puts stockholders and the board of directors in control. Owners have limited liability for the corporation’s actions. A corporation has unlimited life and in most cases is taxed as an entity on its own.
Cost of goods sold Figure representing the cost of buying raw materials and producing finished goods.
Current assets Cash or other assets you expect to use in the operation of the firm within one year.
Current liabilities Debts you expect to pay within one year.
Current ratio: Shows the firm's ability to pay its current obligations from current assets. Current assets divided by current liabilities.
Days purchases in accounts payable ratio Indicates how quickly you pay your suppliers for inventory purchases. Average accounts payable divided by the cost of goods sold plus change in inventory, multiplied by 365.
Days to sell inventory ratio Indicates the firm's efficiency at matching purchases to expected sales. Average inventory divided by the cost of goods sold, multiplied by 365.
Debt ratio Indicates the firm's debt level, or leverage. Total liabilities divided by total liabilities plus capital.
Depreciation Amortization of the cost of a fixed asset, such as plant and equipment, over several years, or the "depreciable life."
Dividend Distribution of earnings to shareholders.
Equal Credit Opportunity Act (Federal Reserve Regulation B): Prohibits lenders from denying your application on the basis of race, color, religion, national origin, sex, marital status, or age, or from discouraging you from applying, or giving you less favorable terms than any other applicant, on such a basis. Regulation B also contains specific rules governing credit transactions.
Equity The ownership interest in a business remaining after its liabilities are deducted. Also known as common stock plus retained earnings, or capital.
Extraordinary items Unusual or nonrecurring event that must be explained to shareholders or investors, such as a manufacturer's sale of a building.
Finance company Competitors of commercial banks in providing credit to households and firms. Unlike banks, they do not accept deposits.
Financial projections Estimates of the future financial performance of a firm.
Financial statements Written record of the financial status of an individual or organization. Commonly include profit and loss, or income, statement; the balance sheet, which includes a statement of the company's retained earnings; and the cash flow statement.
Fixed assets Long-term assets such as buildings, equipment, or property that are not expected to be converted to cash in the near term.
Gross profit Indicates the revenues of the firm before consideration of its operating expenses. Net sales less cost of goods sold.
Gross profit margin Measures a firm's profitability. Gross profits divided by net sales.
Gross income Net sales less cost of goods sold.
Installment loan Loan type that is paid in periodic payments, such as an automobile loan.
Inventory Value of a firm's raw materials, work in process, supplies used in operations, and finished goods.
Investor : An individual who takes an ownership position in a company, thus assuming risk of loss in exchange for anticipate returns.
Leverage Measures the firm's use of borrowed funds versus those funds provided by the shareholders or owners (equity).
Line of credit Although not a contract, a bank's promise to lend to a specific borrower up to a pre-agreed amount during a specific time frame. Usually reviewed annually and subject to cancellation without notice.
Liquid assets Those assets that can be readily turned into cash.
Liquidity Gauges firm's ability to quickly tum assets into cash.
Marketable securities Securities that are easily sold.
Net income the sum remaining after all expense have been met or deducted. Also called profit.
Net sales Gross sales minus returns and allowances.
Net worth Excess of assets over debt.
Niche Particular specialty in which a firm has gained a large market share.
Operating expense Those costs associated with the day-to-day activities of the business.
Operating profit (loss): Income or loss before taxes and extraordinary items resulting from transactions other than those in the normal course of business.
Operating profit margin Measures a firm's profitability by examining the pre-tax profit generated from primary operations (versus extraordinary items) in relation to net sales. Operating profit divided by net sales.
Partnership Can be general or limited, but in either case the general partners are in control. The tax burden is shared by all the partners at their personal rate, and the general partners have unlimited liability. Limited partners have limited liability.
Principal The currently unpaid balance of a loan, not including interest owed. Also can refer to a primary owner or investor.
Profit Compensation an entrepreneur receives for the assumption of risk in a business venture. Also called net income.
Profit and loss statement Summary of the revenues, costs, and expenses for a business over a period of time. Also called the income statement.
Pro forma financial statements Financial statements for a business where certain amounts shown are hypothetical, or estimated, for the period depicted.
Quick ratio Liquidity ratio that focuses on the firm's most liquid assets by excluding inventory. Also known as the acid test ratio. Cash, marketable securities, and accounts receivable divided by current liabilities.
Retained earnings Net profits kept to accumulate in a business after dividends are paid.
Seasonal loan A loan made for the purpose of meeting predictable and periodic funding needs, such as funding of camping gear inventory before summer purchases.
Small Business Administration (SBA): Federal agency created in 1953 to provide management and financial assistance to small businesses. Mainly, the SBA guarantees loans through financial institutions. The loans may be used for working capital, machinery and equipment, acquisition of real estate, and expansion.
Sole proprietorship A type of business where the owner has full control and unlimited liability. A sole proprietorship is taxed at the personal income tax rate.

* Loan Subject to Credit Approval