SouthState Bank Business Lending Review

Introduction to SouthState Bank

SouthState Bank has established itself as a prominent player in the southeastern United States banking landscape, with a strong focus on serving small and medium-sized businesses. Founded in 1934 and headquartered in Winter Haven, Florida, SouthState Bank has grown through a series of mergers and acquisitions to become a significant regional bank with over 270 branches across six states: Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia.

As a full-service financial institution, SouthState Bank offers a comprehensive suite of banking products and services tailored to meet the needs of both personal and business customers. However, their small business lending division, particularly their expertise in Small Business Administration (SBA) loans, has become a cornerstone of their operations and a key differentiator in the competitive lending market.

Key Features and Unique Selling Points

SouthState Bank distinguishes itself through several key features that cater specifically to small business owners:

SBA Preferred Lender Status: As an SBA Preferred Lender, SouthState Bank has demonstrated proficiency in processing and servicing SBA-guaranteed loans. This status allows them to streamline the approval process for SBA loans, potentially leading to faster funding for qualified borrowers.
Diverse Loan Products: While SBA loans are a primary focus, SouthState Bank also offers a range of conventional loan products, including term loans, lines of credit, and specialized financing options for equipment purchases and real estate transactions.
Local Market Expertise: With a strong presence in the Southeast, SouthState Bank leverages its understanding of local market conditions and industry trends to provide tailored financial solutions to businesses in the region.
Relationship-Based Banking: SouthState Bank emphasizes building long-term relationships with its business clients, offering personalized service and dedicated relationship managers to support businesses throughout their growth journey.

Target Audience

SouthState Bank primarily targets small to medium-sized businesses across various industries in the southeastern United States. Their ideal clients typically include:

Established businesses looking to expand operations or acquire new assets
Startups and early-stage companies seeking initial funding
Businesses in sectors such as retail, healthcare, manufacturing, and professional services
Companies with annual revenues between $250,000 and $20 million

While SouthState Bank serves a broad range of businesses, their SBA loan programs are particularly attractive to businesses that may not qualify for conventional bank financing due to factors such as limited operating history or collateral.

Market Positioning

In terms of market positioning, SouthState Bank aims to bridge the gap between traditional banking institutions and alternative online lenders. They offer the stability and comprehensive services of a traditional bank while striving to provide the flexibility and speed often associated with online lenders.

As of 2024, SouthState Bank holds a significant market share in small business lending within its operating regions. While specific market share statistics are not publicly disclosed, the bank’s continued expansion and focus on small business services indicate a strong and growing presence in this sector.

Unique Selling Propositions

SBA Loan Expertise: SouthState Bank’s status as an SBA Preferred Lender and their focus on SBA loan products set them apart from many regional competitors.
Regional Focus: Their deep understanding of local markets in the Southeast allows for more nuanced lending decisions and tailored financial solutions.
Comprehensive Banking Services: Unlike some online-only lenders, SouthState Bank offers a full range of banking services, allowing businesses to centralize their financial operations.
Blend of Traditional and Modern Banking: SouthState Bank combines the reliability of a traditional bank with modern, streamlined loan application processes, aiming to offer the best of both worlds to small business owners.

For small business owners in the Southeast seeking a lender with a strong regional presence and expertise in SBA lending, SouthState Bank presents a compelling option. However, as with any financial decision, it’s crucial to carefully evaluate their offerings against your specific business needs and check the market to understand all available options before committing to a lender.

Loan Products Offered by SouthState Bank

SouthState Bank offers a diverse range of loan products tailored to meet the varied financial needs of small businesses. While they are particularly known for their SBA loan offerings, they also provide conventional loan options. Let’s explore the key loan products available to small business owners:

SBA Loans

As an SBA Preferred Lender, SouthState Bank specializes in SBA loan programs, which are partially guaranteed by the U.S. Small Business Administration. This guarantee allows the bank to offer more favorable terms to borrowers who might not qualify for conventional loans.

1. SBA 7(a) Loans

The SBA 7(a) loan program is the most popular and versatile SBA loan option offered by SouthState Bank.

Loan Amounts: $50,000 to $5 million
Terms: Up to 10 years for working capital, up to 25 years for real estate
Interest Rates: Variable, typically Prime Rate + 1.75% to 2.75%
Use of Funds: Working capital, equipment purchases, business acquisition, debt refinancing, and commercial real estate

2. SBA 504 Loans

These loans are specifically designed for purchasing major fixed assets, particularly real estate and equipment.

Loan Amounts: Up to $5 million for the SBA portion (total project size can be larger)
Terms: 10 or 20 years
Interest Rates: Fixed rates, typically lower than conventional commercial loans
Use of Funds: Primarily for purchasing or improving owner-occupied commercial real estate or long-term equipment

Conventional Loans

In addition to SBA loans, SouthState Bank offers several conventional loan products:

1. Term Loans

Loan Amounts: Typically $25,000 to $5 million
Terms: Varies based on the purpose, generally 1-7 years
Interest Rates: Fixed or variable, based on creditworthiness and market conditions
Use of Funds: Business expansion, equipment purchases, working capital

2. Lines of Credit

Credit Limits: Generally from $10,000 to $1 million
Terms: Usually renewed annually
Interest Rates: Variable, based on the Prime Rate plus a margin
Use of Funds: Short-term working capital needs, managing cash flow fluctuations

3. Equipment Financing

Loan Amounts: Up to 100% of equipment value
Terms: Typically matches the useful life of the equipment, up to 7 years
Interest Rates: Fixed or variable
Use of Funds: Purchasing new or used equipment

4. Commercial Real Estate Loans

Loan Amounts: Varies based on property value and business financials
Terms: Up to 25 years
Interest Rates: Fixed or variable
Use of Funds: Purchasing, refinancing, or improving commercial property

Interest Rates and Fee Structure

SouthState Bank’s interest rates are competitive within the small business lending market. For SBA loans, rates are typically tied to the Prime Rate plus a margin, which can range from 1.75% to 2.75% depending on the loan size and term. Conventional loan rates may be higher and are more dependent on the borrower’s creditworthiness and the specific loan product.

Fees associated with SouthState Bank loans may include:

Origination fees (typically 0.5% to 1% of the loan amount)
SBA guarantee fees (for SBA loans, ranging from 2% to 3.75% of the guaranteed portion)
Appraisal and documentation fees
Closing costs for real estate loans

It’s important to note that while SBA loans often have lower interest rates, the additional fees can increase the overall cost of borrowing. Borrowers should carefully consider the Annual Percentage Rate (APR), which includes both interest and fees, when comparing loan options.

Repayment Schedules

Repayment schedules at SouthState Bank are structured to accommodate various business cash flow situations:

Term Loans and SBA Loans: Typically require monthly payments of principal and interest.
Lines of Credit: Interest-only payments may be allowed during the draw period, with principal repayment required at maturity or conversion to a term loan.
Equipment Financing: Usually involves fixed monthly payments over the loan term.

SouthState Bank may offer some flexibility in repayment schedules, such as seasonal payment plans for businesses with cyclical revenue patterns. However, this is typically negotiated on a case-by-case basis.

Pros of SouthState Bank’s Loan Products

Diverse Loan Options: The range of loan products allows businesses to find financing tailored to their specific needs.
Competitive Rates: Particularly for SBA loans, SouthState Bank offers attractive interest rates.
Long-Term Financing Available: With terms up to 25 years for some loans, businesses can secure long-term financing for major investments.
SBA Expertise: As an SBA Preferred Lender, SouthState Bank can offer streamlined processing for SBA loans.

Cons of SouthState Bank’s Loan Products

Geographic Limitations: Services are primarily available in the southeastern United States, which may limit access for businesses outside this region.
Potential for High Fees: Especially for SBA loans, the associated fees can significantly increase the overall cost of borrowing.
Strict Eligibility Requirements: Like many traditional banks, SouthState Bank may have stringent eligibility criteria, particularly for conventional loans.

For businesses considering long-term financing options, our detailed guide on term loans provides valuable insights into this type of funding. Additionally, if you’re exploring ways to finance new equipment for your business, learning about equipment financing options can help you make an informed decision.

While SouthState Bank offers a comprehensive suite of loan products, it’s crucial for business owners to carefully evaluate these options against their specific needs and financial situation. As always, check the market and understand all your options before committing to one lender.

Eligibility Requirements for SouthState Bank Loans

Understanding the eligibility criteria for SouthState Bank loans is crucial for small business owners considering this lender. While specific requirements can vary depending on the loan product, there are general criteria that apply across most of SouthState Bank’s small business lending options. Let’s break down these requirements:

Minimum Credit Score

SouthState Bank, like most traditional banks, places significant emphasis on credit scores when evaluating loan applications. While they don’t publicly disclose a minimum credit score requirement, based on industry standards and available information, we can infer the following:

For SBA loans: A minimum credit score of 650 is typically required, although scores of 680 or higher are preferred.
For conventional loans: A credit score of 700 or above is generally expected.

It’s important to note that these are estimated thresholds. SouthState Bank may consider applications with lower credit scores if other aspects of the business’s financial profile are strong.

Time in Business

The time a business has been operating is a key factor in SouthState Bank’s lending decisions. This requirement helps the bank assess the stability and viability of the business. General guidelines include:

For SBA loans: At least 2 years in business is preferred, although startups may be considered for certain SBA programs with a strong business plan and industry experience.
For conventional loans: Typically, a minimum of 3 years in business is required.

Businesses with shorter operating histories may find it more challenging to qualify for conventional loans but might still be eligible for certain SBA loan programs.

Annual Revenue Requirements

While SouthState Bank doesn’t publicly specify minimum annual revenue requirements, they do consider a business’s revenue as part of their underwriting process. Based on industry standards and available information, we can estimate:

Minimum annual revenue: $100,000 to $250,000 for most small business loans
Preferred annual revenue: $500,000 or more for larger loan amounts

The bank will also look at the business’s cash flow and profitability, not just top-line revenue. They typically require businesses to demonstrate sufficient cash flow to cover loan repayments.

Industry Restrictions

SouthState Bank serves a wide range of industries, but like most banks, they may have restrictions on certain high-risk or heavily regulated industries. While not exhaustive, industries that may face additional scrutiny or limitations include:

Cannabis-related businesses
Gambling and gaming
Adult entertainment
Certain types of real estate investments

It’s advisable for businesses in niche or potentially controversial industries to consult directly with SouthState Bank regarding their eligibility.

Geographic Limitations

As a regional bank, SouthState Bank primarily serves businesses located in the southeastern United States. Their lending services are generally available in:

Alabama
Florida
Georgia
North Carolina
South Carolina
Virginia

Businesses outside these states may find it more challenging to secure financing from SouthState Bank, although exceptions may be made for particularly strong applications or existing customers expanding to new locations.

Additional Considerations

Collateral Requirements: For many of their loan products, especially larger loans and those not backed by the SBA, SouthState Bank may require collateral. This can include business assets, real estate, or personal assets of the business owners.
Personal Guarantee: Most small business loans from SouthState Bank will require a personal guarantee from the business owners, especially for businesses with less than 5 years of operating history.
Debt Service Coverage Ratio (DSCR): SouthState Bank typically looks for a DSCR of 1.25 or higher, meaning your business’s net operating income should be at least 1.25 times your total debt service.
Industry Experience: While not a strict requirement, SouthState Bank values industry experience. Business owners with a track record in their industry may find it easier to qualify for loans.
Business Plan: For startups or businesses seeking large loans for expansion, a comprehensive business plan is often required. This helps the bank assess the viability and potential of the business.

Comparison to Industry Standards

When compared to industry standards, SouthState Bank’s eligibility requirements are generally in line with other traditional banks and SBA lenders. Their credit score requirements are relatively standard, although they may be slightly more lenient for SBA loans compared to some larger national banks.

Their time-in-business requirements are fairly typical, with the possibility of funding newer businesses through SBA programs being a positive aspect. The focus on businesses in the Southeast is a key differentiator, which can be advantageous for local businesses but limiting for those outside the region.

For businesses that may not meet these traditional banking criteria, exploring alternative financing options like revenue-based financing could provide more flexible solutions based on business performance rather than strict eligibility requirements.

While these eligibility criteria provide a general guideline, it’s important to remember that SouthState Bank, like many lenders, evaluates each application on a case-by-case basis. Factors such as strong cash flow, significant assets, or an excellent credit history can sometimes compensate for shortcomings in other areas.

If you’re unsure about your eligibility or need assistance in preparing your loan application, consider scheduling a consultation with a financial advisor or reaching out directly to SouthState Bank for more specific information tailored to your business situation.

As always, it’s crucial to check the market and compare multiple lenders to ensure you’re getting the best possible terms for your business loan.

SouthState Bank Application Process

Navigating the loan application process can be a daunting task for many small business owners. Understanding the steps involved, required documents, and typical timeline can help streamline the process and increase your chances of approval. Let’s break down SouthState Bank’s application process for small business loans.

Steps Involved

Initial Inquiry: The process typically begins with an initial inquiry, which can be done online, over the phone, or in person at a SouthState Bank branch.
Preliminary Assessment: A SouthState Bank representative will conduct a preliminary assessment of your business’s needs and eligibility. This may involve a brief discussion about your business, loan purpose, and financial situation.
Application Submission: If you meet the initial criteria, you’ll be invited to submit a formal application. This can often be done online through SouthState Bank’s secure portal.
Document Collection: You’ll need to provide various documents to support your application (more on this in the next section).
Underwriting: SouthState Bank’s underwriting team will review your application and documents, potentially requesting additional information if needed.
Loan Decision: After a thorough review, SouthState Bank will make a decision on your loan application.
Closing: If approved, you’ll review and sign the loan documents. For SBA loans, there may be additional steps required by the SBA.
Funding: Once all documents are signed and conditions are met, the loan funds will be disbursed to your business account.

Required Documents

SouthState Bank typically requires a comprehensive set of documents to evaluate your loan application. While the exact requirements may vary based on the loan type and amount, here’s a general list of documents you should be prepared to provide:

Business Financial Statements:
- Balance sheets
- Profit and loss statements
- Cash flow statements (typically for the past 2-3 years)
Personal Financial Statements: For all owners with 20% or more ownership in the business
Tax Returns:
- Business tax returns (past 2-3 years)
- Personal tax returns for all owners (past 2-3 years)
Bank Statements: Both business and personal bank statements (typically for the past 3-6 months)
Business Plan: Especially important for startups or businesses seeking funds for expansion
Legal Documents:
- Business license
- Articles of incorporation or organization
- Contracts or leases relevant to the loan purpose
Collateral Documentation: If the loan requires collateral, you’ll need to provide relevant documentation (e.g., property deeds, vehicle titles)
Accounts Receivable and Payable Agings: If applying for working capital or lines of credit
Debt Schedule: A list of all current business debts, including terms and payment information
Resume: For all key management members

For SBA loans, additional forms may be required, such as the SBA Form 1919 (Borrower Information Form) and Form 413 (Personal Financial Statement).

Typical Timeline from Application to Funding

The timeline for SouthState Bank’s loan process can vary depending on the loan type, amount, and completeness of your application. Here’s a general estimate:

Conventional Loans:
- Small loans (under $100,000): 1-2 weeks
- Larger loans: 3-4 weeks
SBA Loans:
- SBA Express loans: 2-3 weeks
- Standard SBA 7(a) loans: 4-8 weeks
- SBA 504 loans: 6-8 weeks or more

It’s important to note that these timelines assume that all required documents are provided promptly and there are no complications in the underwriting process. Delays in providing documentation or complex business structures can extend these timelines.

Technology Used

SouthState Bank utilizes modern banking technology to streamline the application process:

Online Application Portal: Allows for secure submission of applications and documents.
Digital Document Upload: Facilitates easy and secure sharing of financial documents and other required paperwork.
Automated Underwriting Systems: For certain loan products, particularly smaller loans, SouthState Bank may use automated systems to expedite the initial screening process.
Customer Relationship Management (CRM) Systems: Helps manage communication and track the progress of your application.
Secure Messaging Systems: Allows for confidential communication between applicants and loan officers.

While SouthState Bank leverages technology to improve efficiency, they also maintain a strong emphasis on personal relationships. Applicants can expect to have direct contact with loan officers throughout the process, especially for larger or more complex loans.

Tips for a Smooth Application Process

Prepare in Advance: Gather all necessary documents before starting the application process.
Be Thorough and Accurate: Ensure all information provided is complete and accurate to avoid delays.
Respond Promptly: Quick responses to requests for additional information can significantly speed up the process.
Maintain Open Communication: Don’t hesitate to ask questions or seek clarification from your loan officer.
Consider Your Timing: Apply when your business financials are strong and you can demonstrate a clear ability to repay the loan.
Leverage Your Relationship: If you’re an existing SouthState Bank customer, your established relationship may help streamline the process.

For businesses that may find the traditional banking application process challenging, exploring alternative lending options could be beneficial. Our guide on funding tools and resources provides valuable insights into various financing options and how to navigate them effectively.

Remember, while SouthState Bank offers a streamlined process, especially for SBA loans, it’s always wise to check the market and compare options from multiple lenders. This ensures you’re getting the best possible terms and the right fit for your business needs.

Advantages of Choosing SouthState Bank

Selecting the right lender for your small business needs is crucial, and SouthState Bank offers several compelling advantages that make it an attractive option for many entrepreneurs. Let’s explore the key benefits of choosing SouthState Bank for your business financing needs.

1. Expertise in SBA Lending

One of SouthState Bank’s most significant advantages is its status as an SBA Preferred Lender. This designation brings several benefits:

Streamlined Processing: As a Preferred Lender, SouthState Bank has the authority to make final credit decisions on SBA loans, which can significantly speed up the approval process.
In-depth Knowledge: Their experience with SBA programs means they can guide borrowers through the complex application process more effectively.
Higher Approval Rates: The bank’s familiarity with SBA requirements may lead to higher approval rates for businesses that might struggle to qualify for conventional loans.

For businesses considering SBA loans, SouthState Bank’s expertise in this area can be a major advantage, potentially saving time and increasing the chances of approval.

2. Speed of Funding

SouthState Bank has made efforts to streamline its lending processes, resulting in relatively quick funding times:

Conventional Loans: Smaller loans can be processed in as little as 1-2 weeks.
SBA Express Loans: These can be approved in as few as 36 hours, with funding possible within 1-2 weeks.
Online Application: Their digital application system allows for quicker submission and processing of loan applications.

While larger loans and more complex applications may take longer, SouthState Bank’s focus on efficiency can be beneficial for businesses needing quick access to capital.

3. Flexibility in Credit Requirements

While SouthState Bank does consider credit scores, they take a holistic approach to evaluating loan applications:

Lower Credit Score Thresholds for SBA Loans: Minimum credit scores for SBA loans may be lower compared to conventional loans, potentially as low as 650.
Consideration of Other Factors: The bank looks at factors beyond just credit scores, including business revenue, time in business, and industry outlook.
Alternative Credit Data: For some loan products, SouthState Bank may consider alternative credit data, which can be beneficial for businesses or owners with limited credit history.

This flexibility can make SouthState Bank a viable option for businesses that might not meet the strict credit requirements of some other lenders.

4. Comprehensive Banking Relationship

Choosing SouthState Bank for your business loan opens the door to a full banking relationship, which comes with several advantages:

Access to Additional Services: From business checking accounts to merchant services, SouthState Bank offers a wide range of financial products.
Relationship-Based Banking: Having multiple services with one institution can lead to better rates and terms on future loans.
Dedicated Relationship Managers: Many business clients are assigned a dedicated banker who understands their business needs.

This comprehensive approach can be particularly beneficial for businesses looking to consolidate their banking services with one provider.

5. Local Market Knowledge

As a regional bank focused on the southeastern United States, SouthState Bank offers:

Understanding of Local Economic Conditions: Their familiarity with local markets can lead to more informed lending decisions.
Support for Local Businesses: There’s often a focus on supporting businesses that contribute to the local economy.
Community Involvement: SouthState Bank is known for its community engagement, which can be advantageous for businesses looking to build local connections.

This local focus can be particularly beneficial for businesses deeply rooted in their southeastern communities.

6. Diverse Loan Products

SouthState Bank offers a wide range of loan products, allowing businesses to find solutions tailored to their specific needs:

Term Loans: For long-term financing needs.
Lines of Credit: For managing cash flow and short-term capital needs.
Equipment Financing: Specifically designed for purchasing business equipment.
Commercial Real Estate Loans: For purchasing or refinancing business properties.

This diversity allows businesses to choose the most appropriate financing option for their situation. For businesses specifically looking at equipment purchases, our guide on business equipment financing provides additional insights into this type of funding.

7. Potential for Building Business Credit

By establishing a relationship with SouthState Bank and successfully managing a business loan, you can:

Build a Positive Credit History: Regular, on-time payments can help improve your business credit score.
Increase Future Borrowing Capacity: A good track record with SouthState Bank can lead to increased credit limits or more favorable terms on future loans.
Establish Banking References: This can be valuable when seeking financing from other sources in the future.

For newer businesses or those looking to improve their credit profile, this aspect can be particularly advantageous.

8. Educational Resources

SouthState Bank provides various resources to help businesses succeed:

Financial Education: They offer workshops and online resources on topics like cash flow management and business planning.
Industry Insights: Access to market research and industry-specific information can be valuable for business strategy.
Personalized Guidance: Loan officers often provide advice tailored to your business’s specific financial situation.

These resources can be particularly helpful for new business owners or those looking to expand their financial knowledge.

While these advantages make SouthState Bank an attractive option for many small businesses, it’s important to remember that the best lender for your business depends on your specific needs, financial situation, and long-term goals. As always, we recommend you check the market and compare offers from multiple lenders before making a decision.

For businesses that may not fit the traditional banking model or are looking for alternative financing options, exploring solutions like revenue-based financing could provide more flexible terms based on your business’s performance rather than traditional credit metrics.

Potential Drawbacks of SouthState Bank

While SouthState Bank offers numerous advantages for small business borrowers, it’s crucial to consider potential drawbacks as well. A balanced understanding of both the pros and cons will help you make an informed decision about whether SouthState Bank is the right lender for your business needs. Let’s explore some of the potential disadvantages:

1. Geographic Limitations

One of the most significant drawbacks of SouthState Bank is its limited geographical reach:

Regional Focus: SouthState Bank primarily serves businesses in the southeastern United States, specifically in Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia.
Limited Access: Businesses outside these states may find it difficult or impossible to access SouthState Bank’s services.
Potential for Future Relocation Issues: If your business expands or relocates outside SouthState Bank’s service area, you may need to switch lenders or face challenges in maintaining your banking relationship.

This regional limitation can be a significant drawback for businesses with a national presence or those planning to expand beyond the Southeast.

2. Stringent Eligibility Requirements

Like many traditional banks, SouthState Bank may have strict eligibility criteria:

Credit Score Requirements: While they may be more flexible with SBA loans, conventional loans typically require good to excellent credit scores (often 700+).
Time in Business: Many loan products require businesses to have been operational for at least 2-3 years.
Revenue Thresholds: There may be minimum annual revenue requirements that could exclude some smaller or newer businesses.

These requirements can make it challenging for startups, businesses with less-than-perfect credit, or those with lower revenues to qualify for loans.

3. Collateral Requirements

SouthState Bank often requires collateral for their loans, which can be problematic for some businesses:

Asset Requirements: Many loans, especially larger ones, may require substantial business or personal assets as collateral.
Risk to Personal Assets: Business owners may need to pledge personal assets, putting them at risk if the business struggles.
Valuation Process: The collateral valuation process can be time-consuming and may result in lower valuations than expected.

For businesses without significant assets or owners unwilling to risk personal property, this requirement can be a major hurdle.

4. Potentially Higher Interest Rates for Conventional Loans

While SouthState Bank’s SBA loan rates are competitive, their rates for conventional loans may be higher compared to some online lenders or larger national banks:

Risk-Based Pricing: Interest rates can be significantly higher for businesses perceived as higher risk.
Variable Rates: Many loans come with variable interest rates, which could increase over time.
Comparison Shopping Needed: Borrowers may need to carefully compare rates with other lenders to ensure they’re getting the best deal.

Higher interest rates can significantly increase the total cost of borrowing over the life of the loan.

5. Complex Application Process

The loan application process at SouthState Bank can be more involved compared to some online lenders:

Extensive Documentation: Applicants typically need to provide comprehensive financial documents, business plans, and personal financial information.
Time-Consuming: The process, especially for larger loans or SBA products, can take several weeks to complete.
Multiple Touchpoints: You may need to interact with several bank representatives throughout the process.

This complexity can be daunting for busy business owners or those seeking quick funding solutions.

6. Limited Online Services

While SouthState Bank has made strides in digital banking, their online services may not be as comprehensive as some competitors:

In-Person Requirements: Some parts of the loan process may require in-person visits, which can be inconvenient.
Limited Mobile App Functionality: The mobile app may not offer all the features available through other channels.
Traditional Banking Model: The overall approach is still more aligned with traditional banking, which may not suit businesses looking for a fully digital experience.

For tech-savvy businesses or those valuing 24/7 online access to all banking services, this could be a significant drawback.

7. Potential for Fees

Like many traditional banks, SouthState Bank may charge various fees that can add to the cost of borrowing:

Origination Fees: These can range from 0.5% to 1% of the loan amount.
SBA Loan Fees: Additional fees associated with SBA loans, such as guarantee fees.
Account Maintenance Fees: There may be fees associated with maintaining business checking accounts or other banking services.

These fees can add up, increasing the overall cost of financing beyond just the interest rate.

8. Less Flexibility for Struggling Businesses

SouthState Bank, as a traditional lender, may have less flexibility in working with businesses going through temporary financial difficulties:

Strict Repayment Terms: There may be little wiggle room in repayment schedules during tough times.
Credit Score Impacts: Late payments or financial struggles could quickly impact your business credit score.
Limited Alternatives: Unlike some alternative lenders, SouthState Bank may not offer as many options for businesses with inconsistent cash flow or seasonal fluctuations.

This lack of flexibility could be problematic for businesses in volatile industries or those experiencing temporary setbacks.

While these drawbacks are important to consider, it’s crucial to weigh them against the advantages SouthState Bank offers and your specific business needs. For some businesses, the benefits of working with an established regional bank with SBA expertise may outweigh these potential disadvantages.

If you find that these drawbacks are significant concerns for your business, it may be worth exploring alternative lending options. For businesses facing unique challenges or seeking more flexible solutions, our resources for small and medium-sized businesses provide insights into various financing options that might better suit your needs.

Remember, the best financing choice depends on your individual business circumstances, financial health, and long-term goals. As always, we recommend you check the market and compare offers from multiple lenders to ensure you’re getting the best possible terms for your business loan.

Comparison to Traditional Lenders

When considering SouthState Bank for your small business financing needs, it’s important to understand how they compare to other traditional lenders. This comparison will help you gauge whether SouthState Bank offers competitive advantages or if other options might be more suitable for your business. Let’s break down this comparison across several key factors:

1. Speed of Funding

SouthState Bank has made efforts to streamline their lending process, particularly for SBA loans:

SouthState Bank:
- SBA Express loans can be approved in as little as 36 hours, with funding possible within 1-2 weeks