January 8, 2013
(Reno,NV) – Heritage Bank ofNevadahas been named the #1 SBA lender for 2012 in Northern Nevada as the largest processor of SBA 504 loans. In FY2012, Heritage Bank partnered with Nevada State Development Corp. to provide funding on 15 projects totaling $22,014,750. Heritage Bank’s portion of the loans totaled $9,812,788 and the SBA’s 504 loans totaled $8,179,000.
The SBA 504 program is designed to grow small business and increase jobs. Loans are made for purchasing or refinancing commercial real estate that is business-owner occupied. Up to 90% is used for financing the purchase of owner-occupied commercial real estate or equipment. These loans are positioned and required by the state to create new jobs.
According to Stan Wilmoth, President and CEO of Heritage Bank, “We continue to focus on the small to mid-size businesses in Northern Nevada and find ways to help them with programs including the SBA loan program. There are great benefits for utilizing the Small Business Administration loan program. In many cases the buyer is reducing costs, improving location or adding square footage. The low 10% down payment allows business owners to retain capital and create jobs. Below-market interest rates make the purchase of a building more affordable. A fixed interest rate for 20 years with no balloon payments stabilizes occupancy costs, and the borrower’s lower down payment amount as compared to conventional loans which can tie-up up to 25% of cash, allows for more working capital.”
Mark McKibben, Vice President and Senior Loan Officer at Heritage Bank, adds, “Faster approval at SBA (typically 3 business days) enables us to close SBA loans within 45 days. Our customers appreciate quick response with a prequalification response within 24 hours of our receiving financial information.
“Because banks get a 50% LTV first lien on the building, the result for the borrower is typically a lower blended interest rate. And with higher SBA loan limits, we can assist businesses with large projects. With the SBA lending program, properties that may be difficult to finance with conventional lending, may be eligible through the SBA 504 program. And our local partnership gives customers accessible to their lenders.”
According to Stan, “Neighborhoods benefit from increased economic development and additional jobs. And we can all appreciate the fact that taxpayers are not affected as no tax dollars are used to fund the 504 Loan Program.”
Heritage Bank is proud to be the #1 SBA lender and the premier community bank in Northern Nevada, with local ownership and local decision-making. Covering the area with six convenient locations and access to thousands of surcharge-free ATMs nationwide, Heritage Bank of Nevada continues its commitment to supporting the customers and communities it serves in Northern Nevada.
For more information on SBA Loan Programs, visit www.sba.com.