Why SBA/USDA Lending
In FY 2019, the SBA approved more than 58,000 loans in the 7(a) and 504 loan programs. This funding provided more than $28 billion to small businesses who were unable to access other credit, and supported approximately 550,000 American jobs in the process.
Consider the benefits for your bank.
Holtmeyer & Monson makes it a simple process for bankers to reap the advantages that government-guaranteed SBA/USDA lending offers — to their business customers, their community and their own institution. These benefits include:
- Non-interest Fee Income. Lenders gain significant revenue from servicing fees, while the government guarantees help to mitigate risk and capital leverage issues.
- Secondary Market Sales. Once a loan is closed, you can quickly and easily sell the guaranteed portion in the secondary market, earning a 8% to 10% premium on the sale.
- Competitive Advantage. Building relationships with community entrepreneurs will help you compete more effectively and enhance brand loyalty for your bank.
- Greater Profitability. On average, small business relationships prove to be 250% more profitable than consumer banking.
- Product Penetration. Lending relationships can add significant growth opportunities, often leading to increases in deposits and utilization of other product offerings.
Why Our Clients Recommend H&M
"Holtmeyer & Monson adds value by providing expertise about 'what you can and cannot do' when considering an SBA guaranteed loan."
"Holtmeyer & Monson has been a tremendous source of non-interest income for our bank, with premiums in excess of 10% on most transactions."
"Over the years we have established a wonderful working relationship with the folks at Holtmeyer & Monson. They are a great partner."