Thank You SBA Lending Partners!

Having trouble viewing this email? View it as a Web page.
Region VI States

June 2,  2017 - News from  @SBASouthCentral Region 

'South Central Region Lenders are Critical to Our Success'

Bill Manger Focuses on Building an Effective & Efficient SBA Loan Program

Dottie Overal

By Dottie Overal, Acting Regional Administrator

If small businesses are the engines of our economy, capital is the fuel that keeps those engines running.  That’s one reason why we value our South Central Region lending partners. They are critical to our success.  More than $3.6 billion SBA-backed loans were funded by 380 lenders last fiscal year in the Region.  These funds helped create or retain nearly 80,000 jobs.  So far in fiscal 2017, SBA-backed loans in the Region are up by two percent over the same period last year, and the number of lenders financing these loans is growing. 

William "Bill" Manger

This is good news for SBA Administrator Linda McMahon whose goal is to revitalize the agency and raise its profile, said William “Bill” Manger, Associate Administrator of the Office of Capital Access. As head of the Agency’s loan programs, Bill leads a team of 560 employees to ensure lending policy, technology, and oversight are on point to manage a $120 billion portfolio of direct and guaranteed loans, at zero subsidy to the taxpayers.

This is Bill’s third job with the Agency in 12 years. In 2005 he served as Region II regional administrator, followed by a two-year stint as associate administrator for the Office of Field Operations in 2007.

“From the very beginning of my time at the SBA I was able to witness the positive impact our programs have on communities across the country,” he said.  “I'm glad to be back to help in the role of Capital Access with the ability to improve the services we provide to help small business owners and entrepreneurs grow to their full potential.” The Cap Access team’s task is to comb through the Agency’s Standard Operating Procedures and uncover ways to simplify and clarify each section for the lenders. 

Bill is on the road delivering this message.  One of his first stops was to speak to South Central Region lenders at the Mid America Lenders Conference in Austin, Texas.

“My job is to get out and make sure we are talking to our lenders and listening to them,” he said.  “I want to hear any of the issues they have and try to address and correct those issues so that we have a more robust program that allows us to get more dollars out to those who can't access capital without SBA’s help.”  In June Bill is heading to New York to meet with lenders followed by trips to Massachusetts, California, and Florida.

SBA One Will Include 504 Loans

In 2015, the Agency rolled out SBA One, a radically different online system that makes doing business with the SBA a lot easier. 

“SBA One has been a fantastic program development for 7(a) lenders,” Bill said.  “It’s especially a great help for small and regional community lenders who don't have the operations and staff to allow them to do a lot of SBA loans.” SBA One takes the mystery out of SBA lending by streamlining the loan documentation process.  The intuitive system allows the lender to go screen by screen with mandatory fields that must be completed before proceeding.

“It's very simple.  It’s the way the private sector operates.  The program prompts the lender to fill in questions, similar to the way you would book an airline ticket online,” Bill said.  “We are planning to take SBA One a step further to include modernizing the 504 lending system and bringing it up to speed technologically,” he said.  “We look for that process to be complete in about 18 months.”

SBA LINC Gets Upgrade

In the next month, SBA is rolling out Lender Match, an updated, more intuitive version of the current SBA LINC platform that connects borrowers with lenders online nationwide.  Since the program was rolled in 2015, there have been approximately 70,000 matches between borrowers and lenders.

“We are enhancing that product and relaunching it under a new name – Lender Match,” Bill said.  “We think this enhanced version is going to attract even more borrowers and hopefully have even more matches with the lenders.”

Increase In Smaller Loans

SBA guarantees loans from $5,000 to $5 million and small dollar loans are on the rise.  This trend is positive news for the Agency. 

“We have stressed to our lending partners that we want to see more small-dollar loans being made to entrepreneurs. Our focus will remain on helping those who need capital most - that includes our veterans, women-owned businesses, minority-owned businesses, rural communities and all of our emerging markets,” he said. 

The Community Advantage Program, a pilot program until 2020, allows non-profit intermediary lenders to fund loans up to $250,000.  The average size of these loans is currently about $130,000. This program has been growing significantly since it's creation in 2011. 

“The Community Advantage program is growing twice as fast as the regular 7(a) program,” Bill said. “7(a) loans are up almost 8 percent this year from last year and the Community Advantage program is up nearly 16 percent.  We are going to be reviewing it next year to see if we should make that permanent.”

The SBA Microloan program, also available through non-profit intermediaries, is showing growth. It is up almost 9.5%.  The program offers loans of $50,000 or less with an average size of $13,000.  It can be a much better option for someone facing the possibility of maxing out credit cards, because they offer lower interest rates.

Number of 504 Loans Increase

The 504 Loan Program is currently up over 14 percent this year, Bill said, and there are two reasons for that. 

“Borrowers can get a longer repayment term with fixed interest rates, and there is a potential for rising interest rates in the near future.  People are more willing to go out and make that larger purchase, say for equipment or some other fixed asset, now that they see the economy is strengthening, and lock in that lower interest rate.”

He added there is also talk about increasing the 504 loan repayment terms to 25 years up from the current 20 years.

More Efficient SBA Processing Centers

SBA processes loans in six centers around the country.  Last fiscal year the centers processed 70,000 loans for nearly $29 billion. Bill says although the centers are operating smoothly, his team is reviewing each operation “to find out how we can make them even better and more efficient.  We welcome any questions, comments and suggestions from lenders on how we can improve our processes. Again, our goal under this administration is to create the best SBA ever.”

SBA Panel at MALC

Office of Capital Access leaders recently spoke to about 350 lenders attending the 23rd annual Mid America Lenders’ Conference (MALC) in Austin, Texas.  At left, James Stokes, chairman of the North Texas Association of Government Guaranteed Lenders (NTAGGL) moderates a Hot Topic panel with Linda Reilly, chief, 504 Loan Programs; Robert Carpenter, supervisory loan specialist for the Office of Financial Assistance;  Linda Rusche, director, Office of Credit Risk Management; and Susan Streich, director, Office of Financial Program Operations. 

South Central Region Districts:

Arkansas  - Edward Haddock - (501) 324-7379 x225

Dallas/Fort Worth - Herbert Austin - (817) 684-5500

El Paso - Phillip Silva - (915) 834-4620 x620

Houston - Timothy Jeffcoat - 713-773-6518

Louisiana - Michael Ricks - 504-589-2744

Lower Rio Grande Valley - Angela Burton - 956-427-8533 x231

Lubbock West Texas - Calvin Davis  - 806-472-7462 x103

New Mexico - John Garcia - 505-248-8238

Oklahoma - Dorothy Overal – 405-609-8011

San Antonio - Anthony Ruiz - 210-403-5904

South Central Region - @SBASouthCentral

Acting Regional Administrator Dottie Overal

405-609-8011  dorothy.overal@sba.gov

Regional Communications Director Darla Booker 

817-684-5534  darla.booker@sba.gov 

Administrative Resources Coordinator Virginia Geary

817-684-5581 virginia.geary@sba.gov 

817-684-5581

4300 Amon Carter Blvd., Suite 108

Fort Worth, TX 76155


South Central Top MALC Lenders

The following lenders were recognized during the annual South Central Mid America Lenders Conference held recently in Austin, Texas. Lenders were selected based on loan volume during the rating period of March 1, 2016 through February 28, 2017.

*******

Capital CDC - Top Certified Development Company - 110 loans for $119 Million

PeopleFund - Top Community Advantage Lender by Loan Count -70 loans

LiftFund - Top Community Advantage Lender by Loan Amount -$8.5 Million

LiftFund - Top MicroLender - 123 Loans for $1.67 Million

BBVA Compass Bank - Top 7(a) Lender (>$1B Asset Size) by Loan Count – 1,064 loans

Wells Fargo - Top 7(a) Lender (>$1B Asset Size) by Loan Amount – $208 Million

Celtic Bank - Top 7(a) Lender (<$1B Asset Size) – 196 loans for $72 Million


District Rising Star Lenders

The following lenders were selected by each District Director as the Rising Star based on lending performance and commitment during the rating period of March 1, 2016 through February 28, 2017.


Arkansas

Legacy Bank, Springdale

Approved 35 7(a) loans for $16 Million, a 180% increase over the previous year. 


Dallas/Fort Worth

Comerica Bank 

Approved 49 loans for $18.4 million.


El Paso 

WestStar Bank

Approved  seven 7(a) loans for $2.0 million.


Houston

Green Bank

Approved 23 7(a) loans for $35.9 million and more than doubled their SBA production from $1.8 million a month to $3.7 million a month. 


Louisiana

Iberia Bank

Approved 11 7(a) Loans for $11 million.


Lower Rio Grande Valley

Vantage Bank, Texas

Although based in San Antonio, Vantage Bank amplified lending in the District with two 7(a) loans for $1.6 million.


Lubbock

Happy State Bank

Approved 24 loans for $3.8 million, demonstrating long-term commitment to SBA lending.


New Mexico

Accion New Mexico 

A Community Advantage Lender providing capital to small businesses in five states.


Oklahoma

Prime Bank

Approved six 7(a) loans for $1.9 million. This is an exceptional feat considering Prime Bank first became a participant with SBA in March 2016, and they operate from a single location.


San Antonio

First National Bank of Ballinger

Approved nine 7(a) loans for $840,300, increasing loan production to support rural communities.

Follow us on Twitter

@SBASouthCentral for the latest on events and information in the South Central Region.