Edward Shin Explains What a Business Line of Credit Is


Edward Shin is the CEO of Noah Bank. Noah Bank is a FDIC, minority-owned bank with branches in the Mid-Atlantic region of the United States. Noah Bank provides a variety of loan opportunities to businesses, and one of the loan products the bank offers is a business line of credit. If you’re unsure whether or not a business line of credit is right for your funding needs, Edward Shin explains a few basic things about a business line of credit below:

What Is a Business Line of Credit and How Can It Help a Business?


A business line of credit is an agreed-upon arrangement between a bank and a customer where a maximum loan balance is established. The customer can then borrow from the line of credit anytime he or she wants as long as he or she doesn’t try to borrow above the maximum balance. The bank charges interest on any money borrowed based on an  agreed upon rate.

There are many advantages a business can experience going this route. First and foremost, if a business owner needs funding right away to, for example, pay a vendor, he or she can withdraw money from the business line of credit right away. There is no need to submit an application every time you withdraw from the business line of credit. For businesses that need short-term funding for day-to-day operations, a business line of credit can be an efficient solution.

In addition to that,  business owners usually pay interest on the amount of money borrowed – not the amount of the business line of credit. Business owners can use the funding when they need it and leave it alone when they don’t. It can be used for a wide variety of scenarios to help business owners manage the ups and downs of running a business. If you’re thinking about applying for a loan, you may want to contact a loan specialist at Noah Bank to learn more about the various products that may be of value to you.



Edward E. Shin Explains What an SBA 7(a) Loan Is


Are you a small business owner in need of new capital? You might want to consider applying for an SBA 7(a) loan. An SBA 7(a) loan provides financing for a wide variety of purposes. Some of the most common include the following:

  • Business Acquisition or Expansion
  • Owner occupied Real Estate purchase
  • Debt Refinancing
  • New Construction or leasehold improvements/ renovations
  • Purchase Equipment
  • Purchase Inventory
  • Working Capital including Startup Capital, New Hires and/or Marketing and Advertising

Start-ups and existing businesses are both able to apply for an SBA 7(a) loan.  Lenders, in general, will want to see credit history, past earnings and historical performance to reasonably assure repayment of the loan. For most Lenders, approval of the loan application is granted if the following qualifications are met:

  • A good credit score (preferably 680 or higher)
  • No recent history of bankruptcy, foreclosure, or tax liens
  • A minimum ten percent down payment (as applicable, depending on loan purpose)
  • Collateral for all loans over $250,000

However, it’s important to keep in mind that existing businesses tend to have an easier time obtaining approval than startups – especially if they have shown success in the past. Start-ups should have a credit score above 700 and significant equity if they want to apply for an SBA 7(a) and get approved.

Also, keep in mind that lenders can only offer SBA 7(a) loans to qualified* small businesses. A small business, characterized by the SBA, as having less than 100 employees, an average net income of under $5 million, annual revenue of less than $7.0 million in the last three years, and/or a tangible net worth of less than $15 million, depending on type of business or industry. Also, the business must be organized for profit and located or primarily operates in the United States.

If you are a small business owner who is considering applying for an SBA 7(a) loan and meet the qualifications listed above, Edward E. Shin of Noah Bank encourages you to take a look at the SBA 7(a) loans available at Noah Bank. As an SBA Preferred Lender, Noah Bank offers 7(a) loans with reasonable interest rates, a variety of financing options, and flexible repayment terms. To learn more and apply today, click here.


*Applicant must meet all eligibility requirements as dictated by the U.S. Small Business Administration.