There are many different types of bank loans, each having their own respective purpose. All bank loans are categorized into two distinct groupings; secured and unsecured loans. Within in each category of loans there are several different sub-types of bank notes used to make a loan. Both categories require the owner of the small business to provide a personal guarantee to ensure the loan is paid back.
A formal note used in conjunction with a deed of trust to collateralize land and the associated buildings is called a mortgage note. Most of these notes are extended long term type and have a fixed rate associated with them.