Stearns Bank division offering small-dollar SBA loans

Stearns Bank in St. Cloud, Minn., has introduced a small-dollar Small Business Administration loan through one of its lending divisions. 

The $2.3 billion-asset bank said in a press release that South End Capital is now offering an SBA Express platform that makes streamlined 7(a) loans for up to $25,000. 

"We have revolutionized the way small businesses access working capital,” Noah Grayson, the division’s president, said in the release. 

“No longer must businesses seeking low documentation and/or fast working capital pay exorbitant merchant cash advance fees or above-market interest rates, " Grayson added. 

South End Capital said its long-term plans include offering larger SBA Express loans and potentially relaxing its eligibility requirements. The division makes loans of up to $75 million under other programs.