We recently asked several top performing community banks their “secrets” to being high volume producers of SBA 7(a) loans. Here is what they told us:
- Show staff the positive results of making an SBA loan to the bank and them
- Increased product offering
- Retains and attracts customers
- Increased liquidity after selling guaranteed portion
- Increased bottom line through premium and servicing fee income
- Decreased exposure with SBA guarantee
- Reduced reserve requirements
- Incentive pay for bankers based on production
- Ongoing education of staff regarding SBA programs-conducted by Small Business Resource Associates
- Discuss in staff meetings to promote programs and keep them “top of mind”
- Show lenders that they must sell on availability and structure and not pricing-benefits of longer term, lower cash injection, advance not based on collateral value, cash for working capital, etc.
- Challenge each lender to a production goal that includes a minimum number of new SBA 7(a) loans per year
- Challenge lenders to identify and refinance a minimum number of existing portfolio loans to SBA 7(a) loans
- Pay incentives to loan officers based on SBA production
- Hire an experienced SBA lender in your market
- Market the bank’s SBA capabilities
- Host meetings with potential referral sources to promote the program, i.e., CPA’s, attorneys, RE brokers, mortgage brokers, business and loan brokers
- Be willing to pay referral fees
- Contact existing referral sources and explain the program
- Be sure that all employees are aware of the program so that they can be a referral source for lenders
- Send weekly “email blasts” to lenders- Small Business Resource Associates will provide to your list of bankers
