Comprehensive Review of Old National Bank – Services, Requirements, and Insights for Business Owners
Introduction to Old National Bank
Company Overview
Old National Bank, founded in 1834 in Evansville, Indiana, stands as one of the Midwest’s longest-operating financial institutions. With over $46.8 billion in assets as of September 30, 2023, the bank serves customers across Indiana, Illinois, Kentucky, Michigan, Minnesota, and Wisconsin. As a full-service banking institution, Old National Bank provides comprehensive financial solutions including business lending, deposit services, and treasury management. The bank has earned recognition as a Preferred SBA Lender, ranking 28th nationally for SBA lending volume with $142.3 million in approved loans during fiscal year 2023.
SBA Lending Profile
Recent data shows Old National Bank’s significant SBA lending activity:
– FY2023 SBA loans approved: 147
– Total lending volume: $142.3 million
– Average loan size: $968,027
– Approval rate: 73% for qualified applicants
– Average processing time: 21 days
– Primary focus: 7(a) and 504 loans
– National ranking: #25 among SBA lenders
– Pull-through rate: 76.6% for small business loans
– Empowerment Program volume: $45 million since 2023 launch
Target Markets and Geographic Presence
The bank maintains a strong regional focus with:
– 258 banking centers across six states
– Primary market concentration:
* Indiana (35% of locations)
* Illinois (25% of locations)
* Michigan (20% of locations)
* Minnesota (15% of locations)
* Wisconsin and Kentucky (5% combined)
Industry Focus and Specialization
Based on recent lending data, Old National Bank shows particular strength in:
– Manufacturing (31% of loan portfolio)
– Healthcare services (24%)
– Commercial real estate (17%)
– Professional services (14%)
– Retail and hospitality (11%)
– Other industries (3%)
Market Position and Performance
Old National Bank’s market position reflects:
– Ranked among top 100 U.S. banks by asset size
– BBB+ credit rating from S&P Global
– 4.2/5 average customer satisfaction rating
– 92% business customer retention rate
Loan Products and Performance Analysis
SBA Loan Portfolio Overview
Current SBA loan offerings include:
– 7(a) loans: $50,000 to $5 million
– 504 loans: Up to $5.5 million
– Express loans: Up to $500,000
– Working capital lines: $25,000 to $1 million
Loan Amounts and Terms Analysis
Term structure analysis shows:
– Short-term loans (1-3 years): 25% of portfolio
– Medium-term loans (3-7 years): 45% of portfolio
– Long-term loans (7+ years): 30% of portfolio
Interest Rate Analysis and Market Comparison
Current rate structures (as of December 2023):
– SBA 7(a) loans: Prime + 2.75-4.75% (8.50-10.50% total)
– Commercial term loans: 7.25-13.75%
– Lines of credit: Prime + 2.25-4.75% (8.00-10.50% total)
– Equipment financing: 7.75-12.25%
– Empowerment Program loans: Prime + 1.75-3.75%
– Working capital lines: Prime + 2.50-4.75%
Note: Prime rate as of December 2023 is 8.50%
Market comparison shows Old National Bank’s rates typically fall within the mid-range for regional banks, with their SBA Preferred Lender status often enabling faster processing times and more competitive terms for qualified borrowers.
Geographic Distribution of Loans
Loan concentration by state:
– Indiana: 32%
– Illinois: 28%
– Michigan: 22%
– Minnesota: 12%
– Wisconsin/Kentucky: 6%
Eligibility Requirements and Target Market Analysis
Typical Borrower Profile
Standard eligibility criteria (as of 2023):
– Annual revenue: $250,000+ (flexible for Empowerment Program)
– Time in business: 18+ months (exceptions available)
– Credit score: 640+ minimum (alternative evaluation for Empowerment Program)
– Debt service coverage ratio: 1.15x or higher
– Personal guarantee required for loans over $25,000
– Collateral requirements vary by loan type and amount
– Clean business history with no recent bankruptcies
– Current on existing obligations
– U.S. citizenship required for loan sponsors
– Employee count: 1-750 employees
– Clean business history with no recent bankruptcies
– Current on existing obligations
Learn more about small business qualification requirements(https://newfrontierfunding.com/smb-businesses/)
Industry Preferences and Restrictions
Preferred industries:
– Manufacturing
– Healthcare
– Professional services
– Commercial real estate
– Retail/wholesale
Restricted industries:
– Gambling
– Adult entertainment
– Speculative real estate
– Illegal substances
– Certain high-risk sectors
Geographic Coverage Analysis
Service availability (2023):
– Full-service banking: IN, IL, KY, MI, MN, WI
– SBA lending: Available in all 50 states with focus on Midwest
– Commercial lending: Primary market states plus selected markets
– Online banking: Available nationwide
– Mobile banking: Available in all service areas
– ATM network: 55,000+ surcharge-free ATMs nationwide
Business Age and Maturity Requirements
Minimum criteria:
– 2 years in business for most products
– 3+ years preferred for larger loans
– Start-up financing available with strong personal credit
– Additional requirements for specific industries
