Brief overview of Byline Bank

Byline Bank is a full-service commercial bank with a rich history dating back to 1914. Headquartered in Chicago, Illinois, the bank has established itself as a significant player in the financial services sector, particularly in small business lending. As a subsidiary of Byline Bancorp, Inc. (NYSE: BY), Byline Bank has experienced substantial growth over the years, culminating in the recent acquisition of Inland Bancorp, Inc. on July 1, 2023. This strategic move has bolstered the bank’s position, resulting in combined assets of approximately $8.8 billion.

Operating primarily in the Chicago and Milwaukee metropolitan areas, Byline Bank maintains a network of 48 branch locations as of 2023. This regional focus allows the bank to provide personalized services to its local clientele while also extending its reach through nationwide lending programs. The bank’s commitment to serving small and medium-sized businesses, financial sponsors, and consumers has positioned it as a key player in the Midwest financial landscape.

Key features and unique selling points

Byline Bank’s success and reputation in the banking industry stem from several key features and unique selling points that set it apart from competitors:

1. Top SBA Lender: One of Byline Bank’s most notable achievements is its consistent performance in Small Business Administration (SBA) lending. In fiscal year 2023, the bank ranked 5th nationally for SBA 7(a) lending, with an impressive $536 million in nationwide loans. This accomplishment underscores Byline Bank’s commitment to supporting small businesses and its expertise in navigating complex government-backed lending programs.
2. Regional Leadership: Byline Bank has maintained its position as the #1 SBA 7(a) lender in Illinois for an impressive 15 consecutive years. This sustained leadership in its home state demonstrates the bank’s deep understanding of local market conditions and its ability to meet the specific needs of Illinois-based businesses.
3. Specialized Lending Expertise: In addition to its broader SBA lending success, Byline Bank has carved out a niche in specialized lending areas. For three consecutive years, the bank has ranked 1st nationally for SBA International Trade Loans. This specialization highlights Byline Bank’s ability to support businesses engaged in international commerce, providing them with the financial tools needed to expand globally.
4. Government-Guaranteed Lending Focus: Byline Bank has developed a strong focus on government-guaranteed lending programs, particularly those offered by the SBA and the United States Department of Agriculture (USDA). This specialization allows the bank to offer a range of loan products tailored to businesses that may not qualify for traditional bank financing.
5. Preferred Lender Status: The SBA has designated Byline Bank as a Preferred Lender, a distinction that brings significant benefits to both the bank and its customers. This status allows for streamlined loan processing, potentially reducing approval times and simplifying the application process for borrowers.
6. Expanded Geographical Reach: While Byline Bank’s physical presence is concentrated in the Chicago and Milwaukee areas, its SBA lending services extend to businesses in the Midwest, Florida, Colorado, Utah, and California. This broader reach allows the bank to serve a diverse range of businesses across multiple states.

Target audience

Byline Bank’s services and products are primarily geared towards:

1. Small and Medium-Sized Businesses: The bank’s strong focus on SBA lending makes it an attractive option for small businesses seeking government-backed loans to fund their operations, expansion, or other capital needs.
2. Financial Sponsors: Byline Bank also caters to financial sponsors, providing services that support investment activities and financial management for these entities.
3. Consumers: While the bank has a strong commercial focus, it also offers personal banking services to individual consumers, particularly in its core operating regions.
4. Businesses in Specific Geographical Areas: Although Byline Bank offers nationwide lending, it has a particular focus on serving businesses in the Midwest, Florida, Colorado, Utah, and California.
5. International Trade-Oriented Businesses: Given its leadership in SBA International Trade Loans, Byline Bank is well-positioned to serve businesses engaged in or looking to expand into international markets.

While Byline Bank offers many attractive features, particularly for small businesses seeking SBA loans, it’s important for potential customers to consider some potential drawbacks:

1. Limited Physical Presence: Despite its national lending capabilities, Byline Bank’s branch network is primarily concentrated in the Chicago and Milwaukee areas. This may be a disadvantage for businesses or individuals who prefer in-person banking services and are located outside these regions.
2. Mixed Customer Reviews: On platforms like Yelp, Byline Bank has received an average rating of 2.1 out of 5 based on 114 reviews. This suggests that some customers have experienced issues with the bank’s services or customer support.
3. Online Banking Challenges: Some customers have reported difficulties with mobile check deposits and online account access. In an increasingly digital banking landscape, these issues could be significant for businesses relying on seamless online banking services.
4. Allegations of Predatory Lending: There have been unverified claims on social media platforms regarding predatory lending practices. While these allegations should be viewed critically and may not be substantiated, they highlight the importance of carefully reviewing loan terms and conditions.
5. Potential Fee Structure Concerns: Some customers have reported unexpected fees, although it’s worth noting that fee-related issues are common across the banking industry and may not be unique to Byline Bank.

It’s crucial for small business owners and potential customers to carefully evaluate Byline Bank’s offerings against their specific needs and compare them with other lenders. While the bank’s strong position in SBA lending and its specialized services are noteworthy, factors such as customer service quality, online banking capabilities, and fee structures should also be considered when making a decision.

In conclusion, Byline Bank presents itself as a formidable player in the small business lending space, particularly for those seeking SBA loans. Its long-standing reputation, specialized lending expertise, and preferred lender status offer significant advantages. However, like any financial institution, it comes with its own set of potential challenges. Prospective customers should conduct thorough research, compare offerings from multiple lenders, and carefully consider their specific business needs before deciding if Byline Bank is the right fit for their financial requirements.

Loan Products Offered by Byline Bank

Byline Bank offers a diverse range of loan products tailored to meet the needs of small and medium-sized businesses. As a Top 5 SBA lender in the nation, Byline Bank has established itself as a significant player in the small business lending market. This section will provide a comprehensive overview of the loan products offered by Byline Bank, including their types, amounts, terms, interest rates, fee structures, and repayment schedules.

Types of loans offered

Byline Bank provides several loan options to cater to various business needs:

1. Conventional Loans: These traditional business loans are available for various purposes, including purchasing, renovating, or expanding existing operations. They offer flexibility and can be customized to specific business requirements.
2. Lines of Credit: Byline Bank offers flexible, open lines of credit to support working capital needs. These can be particularly useful for businesses with fluctuating cash flow or seasonal demands.
3. Commercial Mortgages: For businesses looking to invest in real estate, Byline Bank provides expert-level support for commercial property purchases or refinancing.
4. SBA Loans: As a leading SBA lender, Byline Bank offers a comprehensive suite of SBA loan programs:
   • SBA 7(a) Loans: The most popular SBA loan program, suitable for various business purposes.
   • SBA Express Loans: Smaller, quicker loans for businesses needing fast funding.
   • SBA 504 Loans: Designed for purchasing fixed assets like real estate or equipment.
   • SBA Microloans: Small, short-term loans for working capital or inventory.
   • SBA Export Working Capital Loans: Tailored for financing international sales.
   • SBA Export Express Loans: Quick financing for businesses expanding through exports.
   • SBA International Trade Loans: Specifically for businesses engaged in international trade.
5. USDA Business & Industry (B&I) Loans: These loans are available for businesses located in areas with 50,000 or fewer residents, supporting rural economic development.
6. Byline Express Loans: This product offers expedited financing for Chicagoland small businesses, providing quick access to funds for qualifying applicants.

Loan amounts and terms

The loan amounts and terms offered by Byline Bank vary depending on the specific product:

1. Conventional Loans: These range from $100,000 to $3 million, with terms tailored to the specific business needs and loan purpose.
2. Lines of Credit: Starting as low as $10,000, these provide flexible access to funds as needed.
3. SBA 7(a) Loans: These loans offer amounts up to $5 million with generous repayment terms of up to 25 years for real estate and 15 years for non-real estate debt.
4. SBA 504 Loans: Available from $125,000 to $20 million, these loans provide long-term, fixed-rate financing for major fixed assets.
5. SBA Express Loans: These offer up to $350,000 with faster processing times compared to standard SBA loans.
6. Byline Express Loans: Available from $10,000 to $500,000, these loans come with 5-year terms for term loans and 2-year terms for lines of credit.
7. USDA B&I Loans: While specific amounts are not provided, these loans offer long-term financing options for rural businesses.

The variety in loan amounts and terms allows businesses to select options that best fit their financial needs and repayment capabilities. However, it’s important to note that some products, like Byline Express Loans, are only available in specific geographic areas (in this case, Chicagoland).

Interest rates and fee structure

Byline Bank offers both variable and fixed rates for their loan products, allowing businesses to choose based on their risk tolerance and financial planning preferences. While specific interest rates are not publicly disclosed and likely vary based on factors such as creditworthiness, loan type, and market conditions, SBA loans typically offer lower interest rates compared to traditional bank loans.

The fee structure for Byline Bank loans can vary depending on the product. For example, SBA loans often include guarantee fees, which can be financed into the loan. These fees are set by the SBA and can range from 0.25% to 3.75% of the guaranteed portion of the loan, depending on the loan amount and term.

For Byline Express Loans, the bank emphasizes competitive rates and fees, though specifics are not provided. It’s advisable for potential borrowers to inquire directly about current rates and fees for their desired loan product, as these can fluctuate based on market conditions and individual business profiles.

Repayment schedules

Repayment schedules for Byline Bank loans are structured to accommodate different business needs and cash flow patterns:

1. SBA 7(a) Loans: These offer extended repayment terms of up to 25 years for real estate and 15 years for non-real estate debt. This long-term structure can help businesses manage cash flow by spreading payments over a longer period.
2. SBA 504 Loans: With terms up to 25 years, these loans provide stable, long-term financing for major asset purchases.
3. Byline Express Loans: These offer 5-year terms for loans and 2-year terms for lines of credit, providing shorter-term financing options for businesses with quicker repayment capabilities.
4. USDA B&I Loans: While specific terms are not provided, these loans offer long-term financing options, potentially allowing for extended repayment periods.
5. Conventional Loans and Lines of Credit: Repayment terms for these products are likely to be more flexible and negotiable based on the specific needs of the business and the purpose of the loan.

The diversity in repayment schedules allows businesses to align their loan obligations with their projected cash flows and growth plans. However, it’s crucial for borrowers to carefully consider their ability to meet these repayment schedules over the long term, especially for loans with extended terms.

Byline Bank’s loan products offer several advantages for small businesses, including flexible options, specialized programs for specific industries, and expert support throughout the loan process. The bank’s status as a Top 5 SBA lender nationally indicates a strong focus on small business support and expertise in government-backed lending programs.

However, potential borrowers should also consider some limitations:

1. Location Restrictions: Some products, like Byline Express Loans, are only available in specific geographic areas.
2. Business Age Requirements: Certain loans, such as Byline Express Loans, require businesses to be at least two years old.
3. Documentation: Loan applications, especially for larger amounts, may require extensive documentation, which could be challenging for some small businesses.

In conclusion, Byline Bank offers a comprehensive range of loan products suitable for various business needs and stages of growth. Their strong presence in SBA lending and specialized industry loans makes them a competitive option in the small business lending market. However, as with any financial decision, businesses should carefully compare terms, rates, and requirements across multiple lenders before choosing a loan product. It’s advisable to consult directly with Byline Bank representatives to get the most current and detailed information about their loan offerings and to determine the best fit for your specific business needs.

Eligibility Requirements for Byline Bank Loans

Understanding the eligibility requirements for Byline Bank loans is crucial for small business owners seeking financing. As a regional bank with a strong presence in the Midwest and a national reach for certain products, Byline Bank offers a range of loan options with varying criteria. This section will delve into the specific requirements potential borrowers need to meet to qualify for Byline Bank’s loan products.

Minimum credit score

While Byline Bank does not publicly disclose a specific minimum credit score requirement, it’s important to note that credit score typically plays a significant role in loan approval processes. Many lenders in the small business loan market generally look for a minimum personal credit score between 620 and 680. However, Byline Bank appears to take a more holistic approach to evaluating loan applications.

Rather than relying solely on credit scores, Byline Bank likely considers a combination of factors when assessing a borrower’s creditworthiness. This may include the overall financial health of the business, cash flow, collateral, and the specific industry in which the business operates. While a strong credit score can certainly improve your chances of approval, potential borrowers should not be discouraged if their credit score falls below the typical thresholds, as Byline Bank may consider other strengths in the application.

Time in business

Byline Bank has specific requirements regarding the operational history of businesses applying for loans. These requirements vary depending on the type of loan product:

1. Byline Express Loans: For these loans, businesses must have been in operation for at least 2 years. This requirement suggests that Byline Bank is looking for established businesses with a track record of success when it comes to their express loan products.
2. SBA loans: As a Preferred Lending Program (PLP) lender for SBA loans, Byline Bank may offer more flexibility in terms of time in business requirements. SBA loans are often available to startups and newer businesses, making them an attractive option for entrepreneurs who may not meet the stricter criteria of conventional loans.

The varying time-in-business requirements across different loan products indicate that Byline Bank aims to cater to businesses at different stages of growth. While established businesses may have more options, the bank’s involvement in SBA lending suggests a willingness to work with younger companies as well.

Annual revenue requirements

Byline Bank does not publicly disclose specific annual revenue thresholds for their loan products. However, their requirements for financial documentation provide insight into how they assess a business’s revenue and financial health:

• For Byline Express Loans ranging from $10,000 to $150,000, the bank requires 8821 tax return revenue verification.
• For loans between $150,001 and $500,000, applicants must provide:
  • Last two years of filed Business tax returns
  • Last year-end internal financial statements (if the most recent year’s tax return is not filed)
  • Year-to-date balance sheet and income statement

These requirements suggest that while Byline Bank may not have strict revenue cutoffs, they do closely examine a business’s financial performance and cash flow. The bank likely uses this information to assess the borrower’s ability to repay the loan and to determine appropriate loan amounts.

For businesses applying for larger loans or SBA products, it’s reasonable to assume that Byline Bank may have more stringent revenue requirements or may look for a longer history of stable or growing revenue. However, the lack of publicly disclosed revenue thresholds could indicate a willingness to consider each application on its individual merits rather than adhering to rigid criteria.

Industry restrictions

One of Byline Bank’s strengths appears to be its openness to lending across a wide range of industries. The bank specifically mentions expertise in lending to several sectors, including:

• Independent insurance agencies
• Investment advisors
• Senior housing communities
• Self-funded entrepreneurs
• Independent pharmacies
• Home care, home health care, and hospice services
• Independent hardware stores
• Mortuary businesses

This diverse list suggests that Byline Bank is willing to work with various industries, particularly those that may have unique financing needs. The bank’s expertise in these specific sectors could be particularly beneficial for businesses operating in these fields, as Byline Bank may have a better understanding of the industry-specific challenges and opportunities they face.

While the bank does not explicitly state any industry restrictions, it’s always prudent for potential borrowers to inquire directly about any limitations that may apply to their specific industry. Some lenders may have restrictions on industries they consider high-risk or those that face regulatory challenges, such as cannabis-related businesses or certain types of online gambling operations.

Geographic limitations

Byline Bank’s services do have some geographic limitations, which vary depending on the loan product:

1. Business Banking team financing options under $350,000:
   • Available in Illinois, Southeast Wisconsin, and Northwest Indiana
2. SBA loans starting at $350,000:
   • Offered to businesses across the United States
3. Byline Express Loans:
   • Specifically available for businesses located in Chicagoland

These geographic parameters reflect Byline Bank’s strong regional focus in the Midwest, particularly in the Chicago area. However, the bank’s ability to offer SBA loans nationwide demonstrates its capacity to serve businesses beyond its core regional market.

For businesses located within Byline Bank’s primary service area, this regional focus could be advantageous. Local and regional banks often have a better understanding of the local business environment and may be more responsive to the needs of businesses in their communities. Additionally, having a physical presence nearby can facilitate face-to-face interactions and potentially streamline the loan application and approval process.

On the other hand, businesses outside of Byline Bank’s core geographic area may find their options limited to larger SBA loans. While this could be beneficial for businesses seeking substantial financing, it may not be ideal for those looking for smaller loan amounts or more traditional banking products.

In conclusion, Byline Bank’s eligibility requirements reflect its position as a regional bank with a national reach in certain loan categories. The bank’s approach to lending appears to be relatively flexible, with a focus on assessing each application holistically rather than relying solely on rigid criteria. This could make Byline Bank an attractive option for small to medium-sized businesses, particularly those in the Midwest or those seeking SBA loans.

The bank’s expertise in specific industries and its status as a Preferred Lending Program (PLP) lender for SBA loans may provide additional advantages for certain borrowers. However, potential applicants should be aware of the geographic limitations and ensure they meet the basic eligibility criteria before applying.

As with any financial decision, business owners are advised to carefully review all terms and conditions, compare offers from multiple lenders, and consider seeking advice from financial professionals before committing to a loan product. While Byline Bank’s eligibility requirements appear to be competitive within the industry, each business’s unique financial situation will ultimately determine the best lending option for their needs.

Byline Bank Application Process

Navigating the loan application process can be a daunting task for small business owners. Understanding the steps involved, required documentation, and timeline can help streamline the experience and set appropriate expectations. This section provides a comprehensive overview of Byline Bank’s application process, offering insights into what prospective borrowers can expect when seeking financing from this institution.

Steps Involved

Byline Bank’s loan application process follows a structured approach, designed to balance thoroughness with efficiency. The process typically involves the following steps:

1. Initial Contact: The journey begins with the prospective borrower reaching out to a Byline Bank business banker at a local branch. This personal touch allows for a preliminary discussion of the business’s financing needs and helps establish a relationship from the outset.
2. Loan Selection: Based on the initial consultation, the banker assists in selecting the most appropriate loan product. Byline Bank offers various options, including Byline Express Loans, SBA loans, and conventional business loans, each tailored to different business needs and qualifications.
3. Application Submission: The application process diverges slightly depending on the loan amount. For smaller loans ($10,000 – $150,000), Byline Bank offers a more streamlined approach. Larger loans require a more comprehensive application and documentation package.
4. Documentation Review: Once submitted, Byline Bank’s team reviews the provided documentation. This step involves verifying revenue and other financial information to assess the borrower’s creditworthiness and ability to repay the loan.
5. Decision Making: Byline Bank emphasizes an expedited decision-making process, particularly for their Express Loans. The bank’s status as a Preferred Lending Program (PLP) lender for SBA loans allows for in-house credit decisions, potentially accelerating the process for these loan types.
6. Document Signing: Upon approval, borrowers are required to sign the necessary documents. Byline Bank utilizes e-signature technology, enhancing convenience and reducing paperwork.
7. Funding: The final step involves the disbursement of funds. Once all paperwork is completed and verified, the approved loan amount is transferred to the borrower.

This structured approach aims to provide a clear path from application to funding, though the complexity and duration of each step may vary based on the loan type and amount.

Required Documents

The documentation required by Byline Bank varies based on the loan amount and type. This tiered approach allows for a more streamlined process for smaller loans while maintaining appropriate due diligence for larger commitments. Here’s a breakdown of the typical documentation requirements:

For loans $10,000 – $150,000:
– Form 8821 for tax return revenue verification

For loans $150,001 – $500,000:
– Last two years of filed Business tax returns
– Last year-end internal financial statements (if the most recent year tax return is not filed)
– Year-to-date balance sheet and income statement
– Personal financial statement
– Last two years of filed personal returns

For SBA loans, additional documentation may be required to comply with SBA guidelines. These could include:
– Business plan
– Projected financial statements
– Ownership and affiliations information
– Collateral documentation

It’s important to note that while this list covers the basic requirements, Byline Bank may request additional documents based on the specific circumstances of each application. Prospective borrowers should be prepared to provide supplementary information if requested.

Typical Timeline from Application to Funding

Byline Bank does not provide specific timelines on their website, which is a common practice among lenders due to the variability in loan processing times. However, several factors suggest that Byline Bank aims for efficiency in their process:

1. Expedited Decision-Making: The bank emphasizes quick decisions, particularly for their Byline Express Loans. This suggests a focus on reducing the time between application submission and loan approval.
2. E-Signature Technology: The use of electronic signatures for document signing can significantly reduce the time typically associated with paperwork completion and submission.
3. PLP Status for SBA Loans: As a Preferred Lending Program lender, Byline Bank can make credit decisions in-house for SBA loans, potentially shortening the timeline compared to non-PLP lenders.

Despite these efficiency-focused features, it’s important for borrowers to understand that the actual timeline can vary significantly based on several factors:

• Loan Type: SBA loans generally take longer to process than conventional loans due to additional government requirements.
• Loan Amount: Larger loans typically require more extensive underwriting, which can extend the timeline.
• Application Completeness: Delays in providing required documentation can significantly impact the overall timeline.
• Borrower Responsiveness: Quick responses to requests for additional information can help expedite the process.

While specific data on average funding times is not publicly available, borrowers should anticipate a process that could take anywhere from a few days for small, straightforward loans to several weeks for more complex or larger loan requests.

Technology Used

Byline Bank incorporates various technological solutions to enhance its application process, balancing digital efficiency with personal service:

1. Online Banking Services: While not explicitly mentioned for all loan types, Byline Bank offers online banking services, suggesting some level of digital integration in their processes. This could potentially include online application capabilities for certain loan products.
2. E-Signature Technology: The bank utilizes electronic signature solutions for document signing. This technology streamlines the final stages of the loan process, reducing paperwork and allowing for faster completion of required documents.
3. UCC Filing Systems: For loans over $150,000, Byline Bank requires a first position UCC filing. This process is likely facilitated through digital systems, ensuring prompt and accurate filing of security interests.
4. Internal Decision-Making Systems: As a PLP lender for SBA loans, Byline Bank likely employs proprietary or SBA-approved systems for expedited credit decisions. These systems may incorporate automated underwriting tools to assist in risk assessment and decision-making.
5. Revenue Verification Tools: The use of Form 8821 for tax return revenue verification suggests the implementation of digital tools to streamline the income verification process for smaller loans.

While Byline Bank has incorporated these technological solutions, it’s worth noting that they maintain a hybrid approach. The emphasis on initial contact with a local banker indicates a commitment to personal relationships alongside digital efficiency. This approach may appeal to business owners who value face-to-face interactions but also appreciate the convenience of modern banking technology.

However, the lack of a fully online application process for all loan types could be seen as a limitation by some borrowers, particularly those accustomed to the fully digital processes offered by some online lenders.

In conclusion, Byline Bank’s application process reflects a balance between traditional banking relationships and modern technological solutions. The structured approach, with varying requirements based on loan size, aims to provide efficiency without compromising on due diligence. While the bank emphasizes expedited decisions and streamlined processes, the actual experience may vary depending on the specific loan product and individual circumstances. Prospective borrowers should be prepared for a process that combines personal interaction with digital tools, and should be ready to provide comprehensive documentation, particularly for larger loan amounts. As with any significant financial decision, it’s advisable for business owners to thoroughly review the terms and conditions, and to engage in open communication with their Byline Bank representative throughout the application process.