Highland Bank Named SBA Preferred Lender
St. Paul, Minn. - July 7, 2004 - Less than two years after Highland Bank launched it's Small Business Administration (SBA) specialty lending division, the bank has been named to the agency's Preferred Lender Program. This designation means Highland Bank's business clients, rather than having to wait as long as up to three weeks to get their loans approved by the SBA, will get the agency's green light within 36 hours.
"This is the highest distinction a bank can receive from the SBA," says Pat Bradley, President and Chief Operating Officer of Highland Bank. "As a preferred lender, we can approve the loan application internally. It's a vote of confidence in our ability to underwrite loans in compliance with the SBA's standards and guidelines."
And the SBA casts that vote rarely. Of the 457 banks in Minnesota that have SBA approved loans, only 15 have been designated preferred lenders, according to Mel Aanerud, the Assistant Director at the SBA's District Office for Minnesota in Minneapolis.
"Preferred lenders can commit the SBA on most loans," Aanerud says. "We give them that power because they've done so much business with us that we're confident in their ability. The preferred lender sends in a sheet. There's no credit decision at all [by the SBA], and within 36 hours they get a loan number."
The foreshortening of the time the loan spends with the SBA is only part of what a preferred lender offers. "Saving clients the three-weeks that their loan can be at the SBA is a great customer service, but it's only one of many," says Kim Storey, Vice President of SBA Lending at Highland Bank's Maple Grove office.
"Being a preferred lender gives you complete authority, within the guidelines, on anything you do with an SBA credit - from deciding on the right type of loan and structuring it correctly, to servicing any changes after the closing that affect the terms of the note," Storey says. "The people at the SBA District Office know we're proficient in our processing and servicing. That's why they nominated us for this highest status."
It appears business clients no longer need to be convinced of the benefits of doing an SBA-backed deal with a preferred lender. "Customers are much more savvy about SBA lending," Storey says. "A couple of years ago, they would have to be sold on the advantages of going with a preferred lender. Now, the clients are asking us, 'Do you know the program inside and out? Are you a preferred lender?'"
Aanerud thinks Highland Bank is well equipped to serve a booming market. "The dollar amounts approved by the SBA in Minnesota have been up every year since 1997," he says. "There's no question about 2004 being another record year. Highland Bank hired Kim Storey [in 2002] and she knows SBA lending. Now that they're a preferred bank, they're in the right place, the most competitive position, to take advantage of this upturn."
Highland Bank offers four SBA-backed products: LowDoc for loans up to $150,000; 7(a) for general loans between $150,000 and $2 million; 504 for fixed-asset loans, with a guarantee of up to $1.3 million; Express for lines of credit up to $2 million.
Founded in 1943, Highland Bank is an independent, community bank focused on building mutually beneficial relationships with small and mid-size businesses. With 130 employees, the bank has grown to over $400 million in assets and eight Minnesota locations: St. Paul, Minneapolis, Bloomington, The Mall of America, Maple Grove, St. Michael, Albertville and the Highland Bank Operations Center also located in Bloomington.
