SBA | Lender News | June 2013

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June 2013

The Lender's Advantage

Brought to you by the West Virginia District Office


SBA Announces a New Initiative with Top Lenders To Help Veterans Become Entrepreneurs

On May 21, 2013 the SBA announced the Veteran Pledge Initiative, a commitment by SBAs top national, regional and community lenders to collectively increase their lending activity to veterans by five percent per year for the next five years.

Often times, veterans face challenges in raising capital or have trouble receiving a conventional loan. With the support of SBA’s top 20 national lending partners, and approximately 100 additional regional and community lending partners across the United States, SBA expects to assist an additional 2,000 veterans obtain loans to start or expand small businesses by increasing lending by $475 million over the next five years. 

West Virginia lending partners taking the Pledge include: JP Morgan Chase Bank; The Huntington National Bank; Manufacturers and Traders Trust; Branch Banking and Trust Company; SunTrust Bank; PNC Bank; and MVB Bank, Inc.

Veterans make up a large number of successful small business owners. Nine percent of small businesses are veteran-owned. These 2.45 million veteran-owned businesses employ more than 5 million individuals. In the private sector workforce, veterans are more likely than those with no active-duty military experience to be self-employed.

In West Virginia, veteran lending has increased tremendously over the past few years. Combined FY11 and FY12 lending totaled $10.5 million, up 17.9% over the FY09 and FY10 combined total of $8.9 million. With this new support, veteran lending has the potential to increase even more through SBA lending programs.

For more information on the SBA lending programs for veterans, contact Rick Haney at 304-623-7449 or Leo Lopez at 304-347-5220.

Lender Awards

The West Virginia District Office celebrated 2013 Small Business Week on May 29 at the Teaming to Win Conference. During the celebration, two awards were presented to outstanding lenders for their FY12 activity. Judy McCauley, West Virginia District Director recognized these lenders for going above and beyond to help higher risk businesses start, grow and succeed. Senator Jay Rockefeller and SBA Regional Administrator Natalia Olson were in attendance to present the awards.

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Community Bank of the Year
The First State Bank

The First State Bank in Barboursville approved 31 SBA guaranteed loans totaling just over $18.1 million during FY12.

Lender of the Year Pic

Lender of the Year
Huntington National Bank

For the 6th consecutive year Huntington National Bank received the Lender of the Year award. In FY12, they approved 52 SBA guaranteed loans for nearly $10 million.

Could you provide me with information on SBA guaranty fee paid by the borrower?

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The guaranty fee paid by the borrower is normally:

  • Guaranty fee for loans with a term of 12 months or less is 0.25%.
  • 2% for loans up to $150,000 (Lender is authorized to retain 25%).
  • 3% for loans over $150,000 up to $700,000.
  • 3-1/2% for loans over $700,000 up to $5,000,000; Plus 3-3/4% for the portion over $1 million.

The above percentages are applied, only, to the guaranty portion of the loan.

For a copy of the SBA Guaranty Fee Calculator, or if you have any guaranty fee questions, contact Rick Haney at 304-623-7449 or Leo Lopez at 304-347-5220.

Capital Access Program Updates & Information

The West Virginia District Office strives to keep our lending community up to date with our most recent Policy Notices, upcoming lender training and webinars, resources and tips (including recordings of past webinars), and past newsletters. Click here to visit our West Virginia Lender Resources page. Make it one of your browser favorites. 

Welcome to the EXPRESS way!

We are excited to announce three new lenders have been approved under the SBAExpress and Patriot Express programs.

  • Harrison County Bank
  • MVB Bank, Inc.
  • Community Bank of Parkersburg

The SBAExpress program reduces the number of Government mandated forms and procedures, streamlines the processing, and reduces the cost of smaller less complex SBA loans. The program allows lenders to utilize, to the maximum extent practicable, their respective loan analysis, procedures and documentation. In exchange for the expanded authority and autonomy through SBAExpress, lenders agree to accept a maximum SBA guarantee of 50 percent. The SBAExpress program is processed through the streamlined E-Tran program.

To become a SBAExpress and Patriot Express lender, contact
Rick Haney at 304-623-7449 or Leo Lopez at 304-347-5220

Exporting, Exporting, Exporting

Are you asking your customers “do you export”?   Did you know that export includes sales your customers make to other U.S. companies that do export (so called indirect export)?   Did you know that your bank can get a 90% guarantee from SBA for equipment and real estate loans regardless of the amount of exporting your customer does?

If you answered no to any of these questions, SBA urges you to closely look at your current commercial customer base for missing lending opportunities.   SBA’s export loan guarantees can be used for any export related funding needs, revolving lines and single transaction financing, and term loans for up to 25 years (real estate).  All three programs offer a 90% guarantee and with the use of export credit insurance, your bank is taking very little risk to finance export purchase orders and accounts receivables.

One idea is to poll your customers regarding their export finance needs. Other ideas include holding workshops to show customers how you can help them expand their revenues without taking on additional risk and essentially borrow at no cost to them.

SBA is happy to help you. For assistance, please contact Leo Lopez, your SBA District Office International Trade Officer, at 304-347-5220.

Lastly, we are happy to put together webinars at your convenience to help you ask your customers “the export question”. 

We've made some changes!

Revised 7(a) Lender Matrix

A new Servicing and Liquidation Actions 7(a) Lender Matrix is now available on the For Lenders web site. The new Matrix has been updated to reflect the new SOP 50 57 which became effective March 1, 2013 and subsequently updated April 29, 2013. Previous versions are obsolete. Click here for the updated Matrix

SOP 50 57 – Corrections and Clarifications

As you recall, SBA recently introduced a new SOP 50 57: 7(a) Loan Servicing and Liquidation. Per Notice 5000-1276, SBA has issued several technical corrections and clarifications in response to industry feedback, and the SOP has been updated accordingly. Click here to review the revisions.

Revised SBA Form 912 “Statement of Personal History”

by Timothy D’Lauro, Esquire, as taken from Starfield and Smith, PC newsletter

The SBA Statement of Personal History (SBA Form 912) has recently undergone some significant changes. The changes made are significant because they deal with the SBA loan applicant’s criminal history and potentially allow the Lender additional leeway, but also more responsibility, in determining whether to make a loan to the applicant.

The changes made center around Questions 7, 8 and 9. Question 7 previously asked “Are you presently under indictment, on parole, or probation?”


For a copy of the updated 912 click here.

Resource Corner

This is a quarterly newsletter, however we keep our website updated with the most current information.

SBA Lender Page

Recent Lending Activity in WV

SBA Loan Base Interest Rates

Wall Street Journal Prime Rate: 3.25%

SBA Peg Rate: 2.50%

LIBOR (1 month) + 3%: 3.19%

Maximum Fixed Interest Rate