First Republic Bank Business Loans Review

(June 2024)

First Republic Bank Business Loans Review

In This Article

Our Verdict

First Republic Bank Business Loans Review; our verdict

First Republic Bank, now part of J.P. Morgan Chase, takes roots in 11 states of the country where it has 93 branches. The states include Florida, Connecticut, California, Massachusetts, Oregon, New York, Wyoming, and Washington. Established in 1985 and headquartered in San Francisco, Florida,  First Republic Bank offers a wide range of loan products like aviation and marine financing, business term loan, professional loan, SBA loans, and business lines of credit. The bank also offers other types of financial products which are checking accounts, especially, ATM reimbursement checking accounts.

Pros

  • Provides various kinds of loan products
  • Offers competitive rates
  • Gives out customized loans to borrowers

Cons

  • Values borrowers with a high net worth
  • Available only in 11 states
  • Limited by the number of branches
  • Does not allow online application

Who This Product Is Best For

First Republic Bank

www.firstrepublic.com

First Republic Bank is best for you if you are a business owner who:

  • Wants access to varieties of business loan options
  • Lives in any of the states that First Republic Bank serves
  • Has net worth assets that are over $1 million.
  • Wants various business checking accounts.
  • Desires customized loans

Who This Product Isn't Right For

Look elsewhere if you are a business owner who:

  • Desires nationwide access to the bank’s local branches
  • Wants fee-free lending products
  • Doesn’t live within states where First Republic Bank service covers
  • Wants lender with stability

What This Product Offers

  • Business Term loan: You can use this loan for maintaining cash flow in your business. The bank can tailor a business term loan that meets your financial situation but not without discussing it with the bank’s specialists.
  • Aviation and marine financing: If you own a private Air or marine vessel, First Republic Bank offers you this loan to help you handle different challenges—like taxes, maintenance, and regulatory requirements.
  • Professional loans: You can get this loan if you have the skill to perform well in a particular field. This loan is offered to you to serve as capital for your profession.
  • Small business loan: If you are a small business borrower, with First Republic Bank, you can get an SBA loan of your choice to meet your business needs.
  • Business lines of credit: This loan, just as its name suggests, caters for your revolving capital needs in your business. You can have access to funds as much or as little as you need.
  • Commercial real estate and construction loans: This loan helps you to secure properties to grow your business like housing and lands. You can also use it to upgrade the properties you already had.

Product Details

First Republic Bank Business Loans

You cannot know many details about First Republic Bank’s lending products unless you meet with any of its loan specialists.

While the bank gives information on the rates cost for the majority of its financing products, it turns a blind eye to the loans’ amounts and possible terms on its website https://www.firstrepublic.com/small-business-loans#slide-5.

Business term loans

First Republic business term loans give you a range of lending options with a fixed rate pegged at 6%. You have different repayment methods to choose from. Another thing, the loan is available to different business entities.

Aviation and marine financing

With aviation and marine financing, you can enjoy finance options with competitive interest. The loan also has multiple options for payment plans.

Amount: Not disclosed

Rate: Varies

Term: Long term

Payment options: Varies

Professional loan

After meeting with a First Republic banker to discuss your financial needs, the bank can tailor a professional loan of your choice for you. The bank doesn’t disclose the loan amount, rates, and terms, but promises to offer funding within 24 hours if you are an established professional.

Small business loan

The bank offers you small business loans with competitive rates. If you are a new customer the bank offers you a small business loan at the rate of 2.95% for the first 6 months. After six months, you can be enjoying a flexible rate that ranges from 5.50%. Better still, you can settle for the bank fixed rate which is placed at 6.00%. The amount and payment terms are not disclosed.

Business lines of credit

This loan gives you a drawing period of up to 12 months with a flexible interest rate of 5.50%. With First Republic Bank’s business lines of credit, pay monthly interest only during the drawing period and start paying the real amount at the end of the drawing period. The lender doesn’t specify the actual amount and fee. Moreover, the bank offers two kinds of lines of credit which are revolving lines of credit and standby letter of credit.

Commercial real estate and construction loans

First Republic Bank Commercial real estate loans are into 3 categories. mixed-use building loans, multi-family property loans, and construction and renovation loans. The rates are competitive according to the bank but you have to schedule a meeting with a First Republic representative to discuss the costs for whatever loan you choose.

Where This Product Stands Out

Customized loan products

 First Republic Bank’s business loans offer tailored loan features to meet individual needs. This means you can approach any of the bank branches and discuss your financial situation with the bank’s loan banker. In return, the banker considers your situation and helps you to fashion out a suitable loan product for your business. First Republic Bank loan specialist also sets the rates and fees according to your business capacity and the loan amount.

Competitive rates, flexible terms and fees

If there is any emphasized information on all the lending options listed on the First Republic Bank website, it is the assurance of competitive rates, flexible terms, and fixed origination fees for all of its lending options. You can have an interest rate as low as 2.85% with multiple payment options. In addition, you only pay a fixed $30 origination fee on any financing product of your choice.

Multiple financing products

First Republic Bank has what it takes to compete with other big banks as far as lending products are concerned. You can choose from the business term loan, professional loans, business lines of credit, commercial real estate, SBA, and aviation and marine financing. In addition, First Republic Bank forces you to open a business checking account where you receive your loan amount.

Quick funding time

With First Republic Bank’s professional loans, you may receive funds in your checking account within 24 hrs of submitting your application.

Where This Product Falls Short

Vague details about fees and terms

Chasing the First Republic Bank lending products may be time-wasting because you may find out at the end that you don’t meet the requirement for your desired product. This is because the bank doesn’t post any information about the loan amounts, terms, and fees.

Lacks nationwide availability

First Republic Bank only maintains about 93 branches in 11 states. You may find it difficult to apply if you don’t live or have business in any of those states. Another big turn-off factor is that the bank is limited in the number of branches available. Just 93 branches in 11 states mean you might still have to trek miles before getting to the nearest branch (even though you live in a state where the bank operates).

Currently facing a financial crisis

CNN reveals in its news that big banks in America have come together to rescue First Republic Bank from the financial crisis by injecting a huge sum of $30 billion into the bank. The news giant claims that the bank’s stock value has dropped significantly to –32.80%. The Treasury Department, Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency confirmed this in a joint statement that reads:

“This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,”

Compulsory checking account

Be ready to open a compulsory business checking account with First Republic Bank before you can qualify for any of its loan products. Also, be aware that this account attracts a fee of $30.

How to Qualify for This Product

The bank may require your business to have 2 to 3 years of operation under its current ownership. Notwithstanding, talk to a First Republic Bank loan specialist to know if you have enough business history to qualify for any of its loan products.

Annual revenue

First Republic Bank is a soft spot for borrowers with higher annual revenue (this doesn’t mean you can’t apply if you have a low income). However, you stand a chance if your annual income is somewhere above $1 million.

How to Apply for This Product

Despite insisting you call its loan banker to know the right documents you may need and how to apply for its loan products, First Republic Bank lists some required documents you may need on its website https://www.firstrepublic.com/resource/required-information-and-loan-application-forms.

  • Financial information: These include authentic driver’s licenses, and assets statements. For sole proprietorship and corporate businesses, provide federal tax returns for the past 3 recent years, profit and loss statements, article of incorporation, balance sheet, and operating agreement.
  • Loan application: The bank advises you to consult your banker to get the link to apply or request a pdf copy of the application form.
  • Insurance documents: These include a copy of the insurance policy, the name and phone number of the insurance agent, and the purchase agreement.

Alternatives to This Product

Citibank

Citibank offers a wide range of loan products as much as First Republic Bank does. But, Citibank is SBA preferred lender with few fees. Established in 1812, Citibank has its foot in 19 countries and possesses 723 branches in the United States. Though the bank is not better than First Republic Bank in the number of availability by state, it is far above First Republic in the number of branches.

Wells Fargo

Wells Fargo is by far larger than First Republic Bank if you compare their industrial loan amounts. Wells Fargo maintains $252 billion while First Republic Bank possesses a total net worth of $34.4 billion. In addition, Wells Fargo operates in 36 US states while First Republic Bank maintains its operation in 11 states. If you value a bank with a wide range of availability and higher loan amounts, you can choose Wells Fargo.

Customer Reviews

First Republic Bank receives an A+ rating on Better Business Bureau’s website (BBB) after closing all complaints with the agency. BBB records that First Republic Bank closed 26 complaints in the past 4 years. However, things have taken a downturn recently as S&P Global Rating and Fitch reduce the Francisco lender to BB+ and BB, respectively. This is due to the fear that investors may start pulling out as the bank stock value has significantly dropped.

Methodology

We reviewed *this product* based on 20 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated *this product* based on the weighting assigned to each category:

  • Loan cost: 35%
  • Loan details: 25%
  • Customer experience: 20%
  • Eligibility and accessibility: 10%
  • Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit scores and time in business requirements and the geographic availability of the lender. Finally, we evaluated *this product* customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

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