Why SBA and USDA Lending
In FY 2022, the SBA approved more than 56,900 loans in the 7(a) and 504 loan programs. This funding provided more than $34 billion to small businesses who were unable to access other credit, supporting job creation and entrepreneurial growth across the country. USDA funded $1.25 billion in Business & Industry (B&I) loans in FY 2022.
Consider the benefits for your bank.
Holtmeyer & Monson makes it a simple process for bankers to reap the advantages that government-guaranteed SBA and 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.
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Why Our Clients Recommend H&M
"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."