Frandsen Bank and Trust logo

Frandsen Bank and Trust

SBA Preferred Lender for MN, WI and ND owners: 7(a), 504, Express and CAPLine to $5M, median 9.25% variable, ~10-yr terms. No posted credit floor.

SBA & Government-Backed Loans:
SBA 7(a) Loans
Tags:
#Working Capital#Secured#Buying A Business

Rates & Cost

What the financing costs, normalized so lenders can be compared.

Estimated APR:
Median 9.25% initial rate on SBA 7(a) loans in the 12 months to Jun 30, 2026 (SBA FOIA, n=49); ~9.8% APR incl. 3% guaranty fee on a $350K 10-yr example
Pricing (as quoted by lender):
Lender does not publish rates or its spread over Prime; SBA cap Prime + 4.5% ($250,001 to $350K) and Prime + 3.0% over $350K
Cost to borrow $100K for 6 months:
≈$6,265 (interest at 9.25% on 10-yr amortization repaid at month 6 + $1,700 SBA guaranty fee)
Fees:
Lender does not publish its fees; SBA upfront guaranty fee 3% of guaranteed portion ($150,001 to $700K), 3.5%/3.75% above, 2% at $150K or less; 0% up to $700K for manufacturers, food-supply-chain and rural businesses
Early payoff:
Allowed; SBA prepayment fee (5%/3%/1%) only on 15+ yr loans when 25%+ prepaid in first 3 years
Pricing transparency (0-3):
0

Repayment Terms

How and how fast you pay it back, and how flexible it is.

Term:
Median term 120 months (SBA FOIA); SBA allows up to 10 years, 25 with real estate
Repayment schedule:
Monthly; variable rate tied to Prime (94.1% of loans variable since FY2020); CAPLine revolving lines also offered
Flexibility in slow months:
Low — fixed monthly SBA payments; variable rate can rise with Prime

Eligibility & Access

Who qualifies and what you have to put on the line.

Funding amount:
$15,000 to $5M (SBA FOIA, loans since FY2020; median $339,500); lender does not publish amounts
Minimum revenue:
Lender does not publish; must meet SBA size standards
Minimum time in business:
Lender does not publish; lends to new and existing businesses
Credit check:
Lender does not publish a score floor; full credit underwriting
Personal guarantee:
Required from all owners of 20% or more (SBA rule)
Collateral & lien:
Lender does not publish collateral terms; SBA collateral rules apply

Speed & Service

How fast you get funded and how the lender treats you.

Time to funding:
Lender does not publish; says many SBA loans close faster than the national average; standard SBA 7(a) loans often take 60 to 90 days (third-party)
Lender status:
Active (SBA approvals through Jun 12, 2026; FDIC active; SBA Preferred Lender)

Company Verification

Who actually stands behind the lender: legal entity, registration, and how long the business and its website have existed. Checked against public registries.

Legal entity:
Frandsen Bank & Trust
Registered in:
Minnesota (FDIC cert #1399)
Company formed:
Chartered 1901
Website domain registered:
Sep 2004
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Best for: Minnesota, Wisconsin and North Dakota owners seeking an SBA loan from a local Preferred Lender.

Not for: Borrowers outside the Upper Midwest, or anyone who wants a posted rate before applying.

Lender List verdict: An Upper Midwest SBA Preferred Lender that approves in-house (49 7(a) loans, $26.5M, in the 12 months to June 30, 2026). Expect a median 9.25% variable rate and no posted rates or fees.

Frandsen Bank and Trust at a glance

Frandsen Bank and Trust
Lender typeFDIC-insured community bank; SBA Preferred Lender
Founded / HQ1901 / Lonsdale, Minnesota
Amounts$15,000 to $5M (SBA data; median $339,500)
Cost (headline)Median 9.25% variable, last 12 months
TermMedian 120 months
StatusActive; last SBA approval June 12, 2026

What is Frandsen Bank and Trust?

Frandsen Bank and Trust is a $3.66 billion family-owned bank with 40 offices in Minnesota, North Dakota, South Dakota and Wisconsin. Chartered in 1901, it has been Frandsen-owned since 1982.

How a Frandsen Bank and Trust SBA loan works

Frandsen Bank and Trust makes SBA loans in-house under the Preferred Lender Program, so its team can approve them without a separate SBA review. Since FY2020 it has approved 338 SBA 7(a) loans ($184.4M), averaging about $541,000 in the latest 12 months.

  • Programs: 7(a) for buyouts and working capital, 504, SBA Express, CAPLine lines
  • Payments: monthly; 94.1% of its 7(a) loans since FY2020 float with Prime

Frandsen Bank and Trust rates and fees: what it really costs

Frandsen Bank and Trust's SBA 7(a) loans had a median 9.25% starting rate in the 12 months to June 30, 2026; the bank does not publish its spread. With Prime at 7.00%, SBA caps a $350K loan at 11.5% and larger loans at 10.0%.

Worked example: $350,000 over 10 years at 9.25% costs $4,481.15 a month. Add the $7,875 guaranty fee ($350,000 × 75% × 3%) and total cost is $195,612.43, about 9.8% APR.

Frandsen Bank and Trust requirements

Frandsen Bank and Trust follows SBA eligibility rules and asks for projections and tax returns.

RequirementFrandsen Bank and Trust minimum
Business sizeWithin SBA size standards
Equity injection10% for startups and buyouts
Personal guaranteeOwners of 20% or more
Credit score / time in businessLender does not publish

Frequently asked questions about Frandsen Bank and Trust

Where Are Frandsen Bank Locations? Frandsen Bank and Trust runs 40 offices across Minnesota, North Dakota, South Dakota and Wisconsin, with its FDIC main office in Lonsdale, Minnesota. The family has owned it since 1982. Its SBA 7(a) borrowers since FY2020 are all in Minnesota, Wisconsin or North Dakota.

Is Frandsen Bank and Trust an SBA Preferred Lender? Yes. Frandsen Bank and Trust holds SBA Preferred Lender status, meaning it can approve and process SBA loans without sending each file to the SBA. It approved 49 7(a) loans in the 12 months to June 30, 2026, and SBA Minnesota has named it a top large-bank lender four years running.

How Long Does Frandsen Bank and Trust Take to Close an SBA Loan? Frandsen Bank and Trust publishes no timeline, though it claims quicker-than-typical SBA turnaround, and Preferred Lender status lets it approve in-house. Standard SBA 7(a) loans often take 60 to 90 days. Having projections, financial statements, and personal and business tax returns ready shortens the process.

Does Frandsen Bank and Trust Lend to Startups? Yes. The bank says its SBA loans are open to new and existing businesses. Under SBA rules, startups and buyers of a business must put in at least 10% of the project cost, and owners of 20% or more personally guarantee the loan.

Compare SBA 7(a) lenders (SBA figures: SBA 7(a) FOIA data, as of June 30, 2026), or see Midwest peers Busey Bank and Byline Bank in Illinois.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.

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