Securities-Backed Lines of Credit

Access liquidity aligned with your investment plan

Liquidity options for your financing needs

Through our securities-backed lines of credit services, we provide a flexible and efficient way for you to remain invested and keep your asset allocation strategy in place while still having easy access to the liquidity you need.

Securities-backed lines of credit at a glance
Optimize funding with an Easy Access Line of Credit

Flexible

Evergreen lines of credit with the ability to lock in up to three fixed-rate tranches with no setup charge.

Efficient

A fully streamlined digital process gives you access to liquidity without unnecessary obstacles.

Personal

A partnership that understands your unique financial needs in order to leverage all of our private banking services.

Securities-backed lines of credit benefits

Versatile liquidity for a variety of needs

Whether you have a specific, near-term need or want flexibility for future goals, securities-backed lending through First Citizens Easy Access Line of Credit complements and supports your overall investment plan.

  • Debt consolidation
  • Real estate financing
  • Education or wedding expenses
  • Home renovation projects
  • Medical expenses
  • Tax obligations
  • General liquidity needs

Looking for more private banking services?

Securities-Backed Lines of Credit FAQ
People often ask us

A securities-backed line of credit, or SBLOC, is a line of credit that allows you to borrow money using your own investment portfolio as collateral, so you can remain invested and keep your allocation strategy in place while accessing liquidity for a variety of near- and long-term needs.

Interest payments on a securities-backed line of credit, or SBLOC, could be tax deductible depending on a few key factors, such as the structure of the SBLOC and how the proceeds are used. You should consult an accountant or tax advisor for help with your specific situation.

A primary difference between a home equity line of credit, or HELOC, and a securities-backed line of credit, or SBLOC, is the collateral used. In a HELOC, the collateral is the market value of your home. In an SBLOC, the collateral is the market value of the assets in your investment portfolio.

Another notable difference between a HELOC and an SBLOC is the draw period. An SBLOC is an open line of credit, which means you can draw from it at any time. However, a HELOC typically has an established draw period. Once this period ends, you no longer have the ability to borrow additional funds.

Margin loans are offered through brokerage firms against the value of securities in your portfolio. You can use them to buy additional investments or meet other short-term liquidity needs.

Securities-backed lines of credit, or SBLOCs, are offered through a bank to borrow against the value of your portfolio, which is held in a separate brokerage account. These lines may not be used for purchasing additional securities or depositing into a brokerage account. Instead, these lines are typically used to span a gap between large transactions or to fulfill a short-term cash obligation without decreasing the value of your portfolio.

Insights
A few insights for your financial plan

Tax Planning

Tax-Loss Harvesting: A Smart Tax Move for Investors

Tax-loss harvesting is a smart way to use capital losses to help minimize capital gains taxes.
Tax-loss harvesting can be a smart way to make your portfolio more tax-efficient. However, it's a strategy that requires careful tracking and timing.

Walt Reed

First Citizens Director of Trust & Estate Tax

Tax Planning

Navigating Capital Gains Taxes

Understanding how capital gains taxes work and ways to minimize them is essential for making more informed investment decisions.
While you can't completely avoid taxes on successful investments, you can take steps to reduce your capital gains taxes.

Walt Reed

First Citizens Director of Trust & Estate Tax

Liquidity

Understanding employee liquidity options prior to an IPO

Accessing liquidity as an employee of a pre-IPO company can involve a series of financial calculations. Knowing your options can help you make sound decisions.
The world of liquidity has shifted for employees and founders of pre-IPO companies throughout the innovation sector during the last 10 years.

Ann Lucchesi

Senior Director

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The information provided should not be considered as tax or legal advice. Please consult with your tax advisor.

Your investments in securities and insurance products and services are not insured by the FDIC or any other federal government agency and may lose value.  They are not deposits or other obligations of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amounts invested. There is no guarantee that a strategy will achieve its objective.

About the Entities, Brands and Services Offered: First Citizens Wealth™ (FCW) is a marketing brand of First Citizens BancShares, Inc., a bank holding company. The following affiliates of First Citizens BancShares are the entities through which FCW products are offered. Brokerage products and services are offered through First Citizens Investor Services, Inc. ("FCIS"), a registered broker-dealer, Member FINRA and SIPC. Advisory services are offered through FCIS, First Citizens Asset Management, Inc. and SVB Wealth LLC, all SEC registered investment advisors. Certain brokerage and advisory products and services may not be available from all investment professionals, in all jurisdictions or to all investors. Insurance products and services are offered through FCIS, a licensed insurance agency. Banking, lending, trust products and services, and certain insurance products and services are offered by First-Citizens Bank & Trust Company, Member FDIC, and an Equal Housing Lender, and SVB, a division of First-Citizens Bank & Trust Company. icon: sys-ehl

All loans provided by First-Citizens Bank & Trust Company and Silicon Valley Bank are subject to underwriting, credit and collateral approval. Financing availability may vary by state. Restrictions may apply. All information contained herein is for informational purposes only and no guarantee is expressed or implied. Rates, terms, programs and underwriting policies are subject to change without notice. This is not a commitment to lend. Terms and conditions apply. NMLSR ID 503941

For more information about FCIS, FCAM or SVBW and its investment professionals, click the links below:

FirstCitizens.com/Wealth/Disclosures

SVB.com/Private-Bank/Disclosures/Form-ADV

See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.